Mining & Trade News

The Malawi Federation of Women and Youth in Mining (MFWYM) says it has initiated a project to work with various stakeholders in addressing health challenges including sexually transmitted diseases, TB and HIV/AIDS in mining areas.

President of the Federation Annie Kamanga told Mining & Trade Review that the organization is planning to partner with mining companies and other stakeholders that can provide resources and infrastructure needed to implement health programs to improve working standards and the welfare of mining communities.

Kamanga said the Federation is currently engaging government at local, regional, and national levels to win support in policy terms, explore funding opportunities, and ensure coordination of efforts to improve health care situation in mining areas.

She also said the Federation is ready to collaborate with Non-governmental Organizations, community based organizations, charitable organizations and international organizations such as World Health Organization to acquire technical expertise, funding, and advocacy support to scale up interventions on health issues in minerals sector.

“It is through strategic partnerships with various stakeholders that we can address health challenges in mining communities,” Kamanga said.

Commenting on what the Federation has on the table as core activities, she explained that the Federation will conduct education and awareness campaigns on the risks and prevention methods for STDs, TB, and HIV/AIDS to women and youth in mining.

“We will also implement and enforce strict health and safety regulations in mining operations to prevent injuries and conditions like scoliosis, and provide ergonomic support and training to reduce the risk of musculoskeletal disorders,” said Kamanga.

She also said that since they will be working with support groups, community based organizations, health providers, and some international groups; they will strategize to ensure easy access to health facilities including regular check-ups and treatment as well as providing counselling services in order to provide emotional and mental health support to women and youth in mining.

Kamanga urged government to develop and enforce policies that can prioritize health and safety of women and youth in the mining sector.

She further called on the government to provide training in capacity building for women and youth in mining areas to enhance their skills in diagnosing, treating and managing health conditions prevalent in these communities.

Kamanga recommended that government enacts and starts enforcing laws that protect the rights of women and youth in mining communities including access to health care, safe working conditions, and protection against discrimination and exploitation.

“By taking these actions, the government can play a crucial role in supporting initiatives aimed at improving the health and well-being of women and youth in mining areas, ultimately contributing to sustainable development and social equity,” said Kamanga.

MFWYM emerged from the recent merging of Malawi Women in Mining (MAWIMA) and Women in Energy, Extractives and Mining (WEEM).

Government says it is working on establishing a loan fund to finance operations of artisanal and small-scale miners (ASMs).

The move follows complaints from ASMs that they fail to acquire financing to pursue their projects as many banks in Malawi regard ASM operations as risky.

Director of Mines in the Ministry of Mining Samuel Sakhuta told Mining and Trade Review that his Ministry is working with the Ministry of Finance to come up with the revolving fund for the ASMs.

“We have requested the Ministry of Finance to consider providing a package for procuring equipment for ASMs which when the people repay the loans, the money will also be given to others to develop their projects,” Sakhuta said.

Sakhuta also said the government will continue to lobby with lending institutions such as banks to consider loan services for ASMs. 

MD for Maleta Gems and Jewels Percy Maleta told Mining and Trade Review recently that a revolving fund is the only way to alleviate the financial challenges faced by small scale miners in Malawi. 

Maleta, whose firm is a key player in the ASM subsector, said that a revolving fund will enable the small-scale miners to increase production, create more jobs and bring more forex into the country through exportation of minerals including gold and gemstones.

He said: “Let us appreciate the fact that gold mining in Malawi is done 100 percent by small scale miners and so far over K5-billion has been spent to buy gold by the Export Development Fund (EDF), and this has been achieved without any financial support. Imagine if these small-scale miners were empowered with capital boosts. The contribution would be much more. The same applies to gemstones.”

Maleta said that it is painful to the ASMs to see that the mining sector is not being financially supported by government yet other economic sectors are heavily supported technically and financially citing agriculture which is enjoying substantial support through projects like the Agricultural Commercialization (AGCOM) and the National Economic Empowerment Fund (NEEF).

“It pains to read, hear and see that our counterparts in small-scale agriculture are heavily supported technically and financially, talk of extension workers/officers, AGCOM with its billions of kwachas to support the cooperatives and recently NEEF, nothing is being done to small scale miners other than hearing from the government that mining is the main thing and touted to replace agriculture in the coming years. How do we achieve this without investing in the mining sector?” Maleta questioned.

Civil Society Organizations (CSOs) working in the extractive sector have reported to the International Monetary Fund (IMF) the challenges that are dogging Malawi’s mining sector which, according to them, include lack of transparency and accountability; poor implementation of policies; lack of community consultations on Corporate Social Responsibility (CSR) projects, community’s lack of access to vital reports and information and; corrupt practices.

 The CSOs presented these challenges to the IMF team at a meeting in Lilongwe. The IMF was in the country to meet various stakeholders including the CSOs, the Central Bank, the Judiciary and various government agencies to diagnose issues of governance, mining and land sectors.

The IMF team called on the meeting with the CSOs, and the agenda included general rule of law issues; contract enforcement; property rights; and functioning of the judiciary.

Responding to IMF questions on challenges the sector is experiencing, Board Chairperson for Human Rights Consultative Committee (HRCC) Robert Mkwezalamba alleged that Government is not committed in implementation of some policies including inspection of the mines.

Mkwezalamba cited that whenever an issue is reported to the Ministry of Mining or District inspection team, they inform the mining company of their plans to inspect the mine, which gives room to corruption.

 “The Ministry seems to be serious with a mining company when the license expires but when in operation not much is done in terms of inspection.”

On CSR, Mkwezalamba said there is need to ensure that the local communities are given an opportunity to decide on their needs despite it being not compulsory to the company.

He said: “The contractual agreements currently being signed by the Government and multinational companies should benefit the people of Malawi.”

“CSR is an issue considering that it is 100% determined by the companies and the communities have no say.”

“They need to look at the power of the community because at the end of the mining project someone benefits while someone does not despite being impacted.”

On transparency and accountability issues, the CSOs centered on the licensing and signing of mining development agreements whereby they lamented that it remains a challenge to know how the two are awarded.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid told the team that though results of both the World Bank funded Airborne Geophysical Survey dubbed Kauniuni and Geological Mapping and Mineral Assessment Project (GEMMAP) were launched to the public, the problem remains accessibility of the two.

Rashid said: “The Kauniuni and GEMMAP reports are out but for you to access them you need to buy, and from there you need also to hire a geologist to interpret the technical reports for you.”

“Another challenge with the mining sector is that we have a new that has established the Mining Regulatory Authority law but no regulations hence we are still using the old one.”

 “Of course, when you ask the Ministry of Mining, they tell you they have developed the regulations and are with the Ministry of Justice, the question is how do you develop regulations while you have not funded the Authority.”

The meeting attracted CSOs including; HRCC, the Council for Non-Governmental Organisations in Malawi, NRJN, Sustainable Rural Community Development, Africa Windmill Project, Youth Initiative, Bwezi la Ana Foundation, Civil Rights Advocacy Centre, National Advocacy Platform, CARE Malawi, Tilitonse Foundation, Save the Children, Citizen Alliance, Centre for Mindset Change and Economists Association of Malawi. 

The IMF team was headed by Deputy Division Chief of Fiscal Operations in the Fiscal Affairs Department Kenji Moriyama.

The mission to Malawi through diagnostic analysis is directly linked to the Extended Credit Facility (ECF) of the IMF.

An environmental activist Godfrey Mfiti has asked ASX-listed Chilwa Minerals, which is prospecting for heavy mineral sands in Lake Chilwa, and the Malawi Government to advance the project with caution in order to protect the environment.

Lake Chilwa Wetland is part of the Tentative list of Malawi in order to qualify for inclusion in the World Heritage List.

The Wetland is important for its waterfowl population. The lake has no outlet, and the level of water is greatly affected by seasonal rains and summer evaporation. It is also used extensively for fishing and bird hunting by the local communities as the Wetland Biosphere Reserve is home to one of the world’s most diverse populations of bird species.    

Mfiti, an environmental policy analyst, says in an interview with Mining & Trade Review that there is need for proper environmental management in executing the mineral prospecting project in such an environmentally sensitive area.

“It is important to balance development and conservation in sustainable ventures like Lake Chilwa project,” he says.

He points out that one main challenge in mining projects is decommissioning, whereby miners leave the mining location neglecting environmental rehabilitation.

“We are aware that Lake Chilwa is heavily hit by climate change and environmental degradation whereby the area along Domasi and Matandani Rivers lost several dykes during Cyclone Freddy induced floods. Therefore, if this project is not handled properly, it will in the long-run heavily impact on the communities in Traditional Authority Kuntumanje in Zomba who are already at the receiving end of the negative effects of the project,” says Mfiti.

He suggests that as the project is progressing, stakeholders including the investor Chilwa Minerals should work closely with environmental specialists, policy holders and local authorities to ensure that it is conducted with utmost respect to Environmental Management Act of 2017 and community well-being.

Meanwhile, Chilwa Minerals has appointed Light Deep Earth (LDE), a South African-based company, to conduct metallurgical test work on samples extracted from the Mposa Deposit, located within the wider Lake Chilwa Project.

Chilwa Minerals MD Cadell Buss says in a statement that the metallurgical test work will be overseen by leading Perth based Mineral Sands Consulting firm TZMI, which previously completed work on the 2015 Lake Chilwa Scoping Study for the former owners of the project.

Buss says the primary goal of this testing phase is to validate and enhance the findings of previous studies.

“The focus of the metallurgical test work is to confirm previous results as well as identify optimisation improvements. Rather than stopping at the production of a mineral sands concentrate, the test work will assess the potential to produce individual mineral sands products,” says Buss.

He says samples from an ongoing drilling program will be delivered to the LDE laboratory in the upcoming weeks, with testing anticipated to take approximately three months.

“The results are expected to be disclosed approximately one month after the completion of the testing phase,” says Buss.

He explains that the commencement of the metallurgical test work marks another step forward in the company’s commitment to unlocking the full potential of the Lake Chilwa Heavy Mineral Sands Project. 

“The current metallurgical testing phase is a critical milestone that offers valuable insights into the deposit’s potential, promising to provide a foundation that guides the project’s future path,” says Buss

The Malawi Government is implementing a strategy to develop agriculture, mining and tourism sectors hence encourages resource firms to put in place measures to conserve the environment and attract tourists while pursuing the minerals.

ASX-listed Lindian Resources, which is conducting mine development studies for rare earth elements (REEs) at Kangankunde in Balaka, has announced that an ongoing metallurgical test work programme that is now close to completion has affirmed both high recoveries and concentrate grades.

Lindian Executive Chairman Asimwe Kabunga explains in a statement that the test work has affirmed recoveries of 70% total rare earth ore (TREO) achievable and concentrate grades ranging from 55% to 68% TREO, which confirms the globally superior quality of Kangankunde.

Kabunga says: “We are pleased to again confirm high recoveries and concentrate grades from our extensive metallurgical test work program which has been ongoing for the past 12 months and is now nearing completion.”

“The results are key for defining operational expenditure (OPEX) for our pending Feasibility Study for Stage 1 mine development and will be instrumental in benchmarking Kangankunde’s concentrate grade and recoveries against existing producers. We expect that the results will showcase Kangankunde’s very robust project economics.”

Lindian’s Chief Executive Officer, Alistair Stephens explains that these metallurgical results clearly demonstrate an advanced understanding of input parameters and material variability necessary for Kangankunde’s pending Stage 1 Feasibility Study.

“We are very encouraged by the results. We anticipate that we will also report final assay results for the Indicated Resource definition, and complete mine design and mining schedules this month. We are very close to the final stages of the construction contract for Kangankunde’s Stage 1 development, and we are confident this will confirm Stage 1 as a low-cost start-up operation,” says Stephens.

Further high-grade intersections from Kangankunde infill drilling

Meanwhile, Lindian has also reported that assay results received for a further 14 holes of the Phase 3 infill drilling program continue to define mineralisation continuity.

The Phase 3 program included 45 drill-holes for 4,886 metres, and the assays reported within are from a total of 14 drill holes reverse circulation (RC) holes.

Stephens reports that all holes assayed demonstrate extensive intersections of mineralisation to end of hole, are non-radioactive and have significant percentages of critical REEs neodymium and praseodymium (NdPr).

Significant intersections include:

❖ 119 metres @ 3.77% TREO from surface to EOH in KGKRC090

❖ 120 metres @ 3.66% TREO from surface to EOH in KGKRC116

❖ 80 metres @ 3.59% TREO from surface to EOH in KGKRC118

❖ 150 metres @ 3.38% TREO from surface to EOH in KGKRC113

❖ 100 metres @ 3.29% TREO from surface to EOH in KGKRC121

❖ 80 metres @ 3.29% TREO from surface to EOH in KGKRC117

He reports that the average grade of rare earths critical metal elements neodymium-praseodymium (NdPr) are over 20% of TREO.

Stephens says: “The results from this infill drill program further demonstrate Kangankunde’s excellent characteristics – high grade, which is consistent across very broad intersections, a high NDPr ratio, and of course, the material is non-radioactive, a unique feature of the asset.”

“Results from the final 10 holes will be reported very soon and we will then be able to define an Indicted portion of the MRE as part of our Feasibility Study.”

Kabunga comments: “All the elements for our Feasibility Study are now rapidly coming together with these infill drilling assays being an important component of this. We look forward to reporting the Stage 1 Feasibility Study very soon, and in quick succession, commencing construction works.”

Drill assay results

In August 2023, Lindian announced its maiden Mineral Resource Estimate (MRE) for the Kangankunde Rare Earths Project of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cut-off grade.

The infill holes reported are designed to provide sufficient data to increase the confidence level of a portion of the mineral resource estimate (MRE) to Indicated status.

Lindian says in the statement that once the remaining assay results are received the resource model will be updated and applied to detail mine design and scheduling.

The areas targeted by the Phase 3 infill program are those considered most likely to define initial feed for operation of the Stage 1 Processing facility. These are; the northern area of the central carbonatite complex, the western area of the central carbonatite complex; and the south-eastern area of the central carbonatite complex.

Lindian’s team is, meanwhile, on the closing stages of completing the preferred provider in relation to the tender of works and contract terms.

The near term milestones for the company include infill drill program assays, Indicated Resource Estimation, Mine Design and Mining Schedules, determination of Capital estimates and Contract awards, and execution of the Feasibility Study.

 • Samples from the final 10 holes are currently at laboratory and will be reported shortly

The World Bank says Malawi’s mineral exports have the potential to replace tobacco as Malawi’s top foreign exchange earner within six years of production.

This is outlined in the 2024 Malawi Economic Monitor report released by The World Bank.

The report establishes the promise of mining exports to fuel economic development and validates the sector’s role as a central driver of growth and industrialization.

The report further emphasizes that mining can contribute significantly to the country’s public revenues.

“Potential fiscal revenues could contribute to more than 10 percent of total public revenues,” the report reads.

However, the report shows that the promise of mining will take some years to fully materialize and hinges on adequate policy.

“The pace and progression of mine development in Malawi relies not only on the technical aspects of the projects but equally on the governance of the sector,” explains the report.

It says key factors such as an appropriate fiscal regime, streamlined permitting, strong community engagement, and sufficient infrastructure will shape the mining sector’s trajectory as highlighted in the report.

While mining presents promising opportunities, the Brettonwood institution acknowledges that translating the proven resources in the ground into wealth for ordinary Malawians remains a critical challenge.

“The capital-intensive nature of the mining industry limits potential employment, with the researched projects only expected to generate 20, 000 jobs,” it says.

The report, therefore, highlights the importance of not neglecting other employment-intensive sectors and cautions the country against falling into the “presource curse” trap, where mining revenues are spent prematurely before they materialize.

The report states: “The government also needs to avoid falling victim to the “presource curse,” by spending mining revenues which may never materialize”.

Amidst the ongoing economic crisis, the report notes that Malawi has seen a decrease in imports of fuel and fertilizer compared to pre-crisis levels, even though their share in the total value of imports has been rising.

“Recent revisions of Malawi’s trade data show that fertilizer and fuel accounted for 27.1 percent of imported value since the start of 2022, compared to 18.8 percent two years earlier. However, this still represents 6.1 percent fewer liters of fuel and 30.6 percent fewer bags of fertilizer, reflecting the substantial increase in the cost of both commodities over the past two years,” reads the report.

The Malawi government says it has recorded an increase in coal production from 30,250.76 tonnes in 2021 to 62,166.06 tonnes in 2022 reflecting a 106 percent increase.

This is outlined in the 2022/2023 annual economic report published by the Ministry of Finance and Economic Affairs.

The report attributes the rise in coal production to high resumption of industrial activities after recovering from Covid-19 pandemic and improvement of some companies’ production through optimizing their operations with improved equipment and processes to meet rising demand during the period.

However, the report states that it was not been all rosy in the cement industry as there was a 40.3 percent decline in production of limestone, the major ingredient in cement, compared to the previous reporting period.

The report reads: “Shayona Cement Factory and Cement Products Factory produced 277,979.36 tonnes of limestone, representing a 40.3 percent decline in production compared to the previous reporting period. Similarly, iron ore production fell by 80.3 percent, with only 981.61 tonnes produced in 2022.”

“This was largely driven by high production costs in cement manufacturing and competition with cheaper cement that is smuggled into the country.”

The report also notes that despite awarding more mining licenses in rock aggregate, production declined by 36 percent. A total of 504,536.04 tonnes were produced in 2022 compared to 783,416.55 tonnes in 2021.

“This is because a number of the new quarries were in the construction phase and hence had not commenced quarrying activities. Furthermore, some project quarries delayed to commence production due to shifting timelines of civil construction projects.” the report reads.

Meanwhile, the report states that rock aggregate production is expected to increase as more civil construction projects are in the pipeline and the general public continues to embrace concrete products.

In the current financial year, the government plans to maintain public engagement on mining issues through social media, mainstream media, and other public forums, review the Mines and Minerals Policy to create a more attractive investment climate in the country and develop a National Strategy on Mineral beneficiation and value addition in order to foster productivity, transparency, and accountability of the mining sector so that it contributes significantly to inclusive wealth generation and economic growth in line with the 2063 Vision.

A global conglomerate of Jewish companies of a cross-sector industry portfolio, the Inosselia Group, is the one refining gold which the Malawi Government is purchasing from local artisanal and small scale miners (ASMs) through Export Development Fund (EDF), a subsidiary of the Reserve Bank of Malawi (RBM), Mining & Trade Review has established.

As a way of expanding its global footprints in both mature and emerging markets across Europe, Middle East and Africa, the Group has its local base in Lilongwe close to Kamuzu International Airport (KIA).

Apart from pursuing agricultural investments including mega farms, Inosselia has set up a well-equipped and standard gold refining facility.

President Lazarus Chakwera recently informed the budget meeting of the National Assembly that the RBM has commenced the process of purifying gold with assaying. 

In his address, Chakwera told the house that the process is being done locally with a local gold refining company located at Kamuzu International Airport in Lilongwe. 

The statement raised eyebrows of some stakeholders including in our social media groups who were interested to know who owns the refinery, why it is located at the airport and also the agreement that the owner has with the Malawi Government.

EDF Manager for Precious Stones and Minerals Elyvin Chawinga explained to Mining & Trade Review in an interview that the refinery is located close to the airport but not within KIA premises.

Chawinga disclosed that EDF chose to purify the gold at the company because no any other company within the country had the capacity of refining gold.

She also said EDF assigns the company on one time off basis and that no agreement was signed between the company and the Malawi Government. 

Chawinga said: “The refinery is entirely a private entity and there is no any agreement that is there between government and the company.”

“What we do is that we take the gold in raw form and give them. We inspect the process of refining and we take the product which is in bar form back to Reserve Bank for storage.”

“If another company comes in with a refinery, we are free to choose which one to use at that particular time.”

Since the structured gold market commenced in May 2021, RBM has purchased a total of 187 kilograms of smelted and assayed gold at a total cost of MK19.2 billion, and with a total value of MK22.1 billion.

The gold is currently being held within RBM and undergoing further refining process and casting into gold bars to be part of the official reserves.

Commenting on the concern of why the gold is not being sold due to the foreign exchange challenges the country is experiencing, Chawinga asked for patience from Malawians saying the Reserve Bank governor will decide the opportune time to sell the resource. Chawinga said a decision to sell will be made when gold

Stakeholders in Malawi’s extractive sector had an opportunity to share knowledge and experiences on issues of transparency and accountability with colleagues from the Southern Africa region thanks to a workshop that a civil society group the Centre for Environmental Policy and Advocacy (CEPA) through the UNIKA-Strengthening Transparency and Accountability in the Malawi Extractive Sector Project hosted in Lilongwe.

The workshop was aimed at equipping stakeholders from the extractive sector with knowledge and experience on how they can strengthen extractive governance.

It was organized under the theme of ‘Strengthening Natural Resources Governance through Shared Learning.’

The workshop brought together players from Civil Society, members of the Extractive Industry Transparency Initiative (EITI) Multi Stakeholder Group (MSG) in the Eastern and Southern African (ESA) countries, Malawi government and the Media. 

Executive Director for CEPA Herbert Mwalukomo hailed the meeting saying it provided a platform where local players learnt how stakeholders handle issues of transparency and accountability across the southern Africa region.

Mwalukomo also said the workshop enabled players to deliberate on how the extractive sector is benefiting locals in various mining areas across the country.

He said: “Ultimately we are looking at how Malawi is benefiting from the extractive industry. So this workshop is all about learning from our colleagues in the region in terms of what they have done in upholding issues of transparency including tax justice.

“That is why we have invited even colleagues from Tax Justice Africa to share experiences from the entire African region so that we can use those lessons in applying good practices in Malawi.”

“As you know as a country we have just established a company that will be working under Malawi Development Corporation to try and run own projects or own shares in some of the companies that are in the extractive sector. So the question is how can we make use of that opportunity to ensure that we do not go through the same old terrain where we were actually ripped off as a country?”

“We have to make sure we are doing it equitably and that communities around the projects are getting maximum benefits, at the same time we have to ensure that the country is attractive to investors from all over the world.”

CEPA invited members of EITI MSG who are also under Publish What Your Pay (PWYP) representatives from countries such as Zambia, Tanzania and Uganda.

Malawi joined EITI and adopted the EITI framework in 2015 to be part of the global standard. MWEITI is coordinated by the Secretariat under the Ministry of Finance and Economic Affairs, and brings together different players in the sector.

In his remarks, Leonard Mushane from MWEITI Secretariat lauded the 2023 EITI Standard saying it has huge impact on the extractive sector of the country.

Mushane said unlike the previous EITI Standard, the new standard incorporates new crucial areas including gender and energy transitions.

He also said despite having a panicking economy, Malawi is doing fairly well in terms of tax justice compared to other developing countries.  

Mushane said: “From my understanding in terms of tax justice, the country is not doing entirely bad because looking at our tax base we cannot compare it with developing countries since we have a small economy.”

“Our system is doing well because those that earn more pay higher taxes than those who earn less,” he said.

He, however urged mining companies to ensure that they conduct a larger part of their mineral processing activities within the country to maximize their contribution towards the Malawi’s economy.

 “We hear issues of externalization of funds, transfer pricing, a lot of tax planning with these multinational mining companies. So we need to do more so that we can protect our economy and our tax system,” said Mushane.

But Mushane lamented that MWEITI Secretariat is facing numerous challenges including lack of financing and understaffing, which are weighing in on its activities including dissemination of EITI reports.

“We are not able to reach out to the ground. People do not know much about our reports because of financial challenges that have also triggered lack of networking with CSOs,” he said.

CEPA organized the workshop with funding from Southern Africa Trust, an independent non-profit organization and grant making entity.

Commenting on the progress of the UNIKA project, Communication and Research Associate for Southern Africa Trust Moyna Mwenye said she is impressed with how CEPA is spearheading the transparency and accountability aspect in Malawi’s minerals sector to benefit and safeguard lives of communities.

Mwenye said: “Our specific interest to work with CEPA is to ensure that people’s lives are being safeguarded.”

“Whatever companies in the extractive sector are doing directly impacts communities on the ground, and these people need to be informed about mining projects in all stages.”

“That is why we are working with CEPA as well as other partners in Malawi and other countries to ensure that whatever happens on the ground is transparent, people know the impact, are participating and also contributing in reducing their poverty and levels of inequality,” said Mwenye.

Southern Africa Trust is currently working to support partners in the Southern Africa Developing Community (SADC) region in various thematic areas including gender justice, climate justice, youth empowerment, resources governance and socio-economic recovery.

The workshop covered areas such as beneficial ownership disclosure, EITI regulatory framework and tax justice.