Mining & Trade News

By Vincent Chege

With Malawians eager to see large scale mines coming on stream to start generating foreign exchange and help ease its acute shortage, the Chamber of Mines and Energy says the companies are taking their time to start production at the mines in order to minimise risks and ensure long-term sustainability.

Globally, large scale mining projects take an average of 18 years from discovery to production, according to S&P Global Market Intelligence 2023, but in Malawi this process is taking up to 27 years for some deposits.

Grain Malunga, Coordinator for the Malawi Chamber of Mines and Energy, says this extended timeline allows for more thorough geological assessments, reducing the chances of costly mistakes.

“The longer and thorough exploration of projects improves quality and accuracy of results and reduces project risks,” Malunga said.

He explained that by taking time to confirm the viability of mineral deposits, Malawi ensures that only well-planned and economically feasible projects move forward, preventing resource overestimation and premature abandonment of mines.

Despite these advantages, Malunga acknowledged that prolonged development phases pose challenges.

“Demand and commodity price is cyclic. New replacement products can evolve,” he said.

“This means that by the time a project reaches production, the global market for that particular mineral may have shifted, potentially affecting its profitability.”

To improve efficiency while maintaining sustainability, Malunga suggested stronger collaboration between mining companies and government agencies.

“To enhance mining exploration, Malawi mining companies should work with the Geological Survey Department in mineral resource mapping and evaluation,” he said.

He further emphasized that companies should focus on industrial minerals, which can contribute to economic growth through import substitution and value addition.

Malawi is endowed with different types of minerals including rare earths, uranium, coal, titanium, gemstones, graphite, marble, gold, phosphates, bauxite. galena, niobium and gypsum.

Minister of Mining Kenneth Zikhale Ng’oma has assured global mining investors of the country’s commitment and passion towards inclusive and sustainable extractives sector.

Speaking during a cocktail party on the sidelines of this year’s Investing in Africa Mining Indaba, Ng’oma outlined to the investors the support that the government is rendering towards mining projects which includes: commitment to a sustainable mining industry and transparency; efficient regulatory processes; ensuring security and stability of tenements; social license to operate; availability of geo-scientific data and; energy requirements for the sector.

He said: “The Government of Malawi, through the Ministry of Mining, is dedicated to building a robust and sustainable mining industry that significantly contributes to the nation's economic development.”

“Government of Malawi extends a warm invitation to all the key players driving the global mining industry including executives, consultants, investors, financiers, bankers, brokers, analysts, and fund managers. You should come and explore the abundant investment opportunities in Malawi.”

“For example, you may wish to consider to partner with companies that have signed Mining Developments Agreements seeking project funding.”

“Investors are also welcome to invest in Malawi because we have abundant mineral resources which remain untapped.”

Meanwhile, The World Bank says that Malawi must upgrade and modernize its legal, regulatory and institutional framework to effectively manage and monitor large-scale mining operations in light of growing investor interest in the sector.

In its Malawi Economic Monitor 20th edition report published in January 2025, the Bretton wood institution explains under the headline “Unlocking the potential of Malawi’s mining sector amid the global energy transition; grow, protect and benefit” that with demand for Energy Transition Minerals continuing to rise, Malawi’s mining sector has attracted increased interest both from researchers and international investors.

The report reads that since 2010, regional geological programs, supported by the government and development partners, have studied Malawi’s key rock formations, including Precambrian basement rocks, remnants of the Paleozoic Karoo system, Mesozoic igneous intrusions, and Cenozoic fluvial complexes.

These studies have revealed several economically viable mineral deposits, along with new exploration targets and areas with high potential for mining development.

Reads the report: “As a result, Malawi is increasingly recognized as a mineral-rich country with a unique mix of resources. Notable minerals include graphite, titanium, uranium, niobium, tantalum, and heavy sands.”

“The country also has significant industrial minerals like rock aggregates and limestone, along with undeveloped deposits of gold, and copper. Malawi holds an estimated 2 percent of the world’s rare earth elements, and a major rutile deposit at Kasiya is currently under advanced exploration. Moreover, its average uranium concentration per square kilometer is three times the global average.”

The report, however, highlights that while the country has amended its mining laws multiple times, existing institutions remain underfunded and lack the capacity to oversee a growing extractive sector.

"The Mines and Minerals Act has been amended six times since 1981 to strengthen oversight of the extractive industry. Laws like the 2017 Environmental Management Act and 2022 Land Act also aim to protect people and the environment, but they were enacted before large-scale mining began in Malawi, now with major projects in the pipeline, gaps in governance and enforcement are becoming more apparent,” reads the report.

The Bank points out that despite its vast ETM resources, Malawi’s industrial mining sector has been slow to develop due to governance gaps.

The report reads: “The global average lead time from mineral discovery to production is 18 years yet in Malawi, this process currently takes 27 years with most significant delays occurring during the Mining Development Agreement (MDA) negotiations”.

“While the government and project sponsors must agree on investment terms, prolonged negotiations risk delaying exports and missing the market cycle".

The World Bank projects that mining exports could reach $30 billion between 2026 and 2040, with annual exports hitting $3 billion by 2034 and in a best-case scenario, revenues could increase to $43 billion.

It forecast that the mining sector will grow gradually from 2026 to 2033 and then rapidly starting in 2034 as all seven big projects namely Kayelekera Uranium, Kasiya Rutile, Kangankunde Rare Earth Elements, Kanyika Niobium, Songwe Hills Rare Earth Elements, Makanjira Heavy Sands and Malingunde Graphite come online and move toward their full capacity.

Mining production is expected to boost the country’s economy significantly, but the benefits will take time to materialize. “During the production phase, mining exports could increase the available fiscal space, generate significant foreign exchange, and ease debt challenges, but this process will take 5–10 years,” the report states

. Despite this potential, the World Bank warns that production timelines for Malawi’s seven major mining projects remain uncertain as these projections assume no further delays beyond active exploration, engineering, and construction phases.

 “Other risks include price volatility which is fluctuations in global metal prices that can create unpredictable revenue streams, technical complexity and infrastructure-related challenges,” the report reads.

Coordinator for the Chamber of Mines and Energy Dr. Grain Malunga comments in an interview that in order to develop the minerals sector, there is a need there is need to promote medium to large scale mining with attractive incentive packages and timely processing of permits.

“Granting of approvals of permits should not exceed three days upon receipt of an application,” he says.

The World Bank report reads that several factors could prevent Malawi from fully leveraging the potential of the mining sector to drive long-term growth and poverty reduction as across the region, many countries have had limited success in converting subsoil wealth into sustainable prosperity. It says in Malawi, limited institutional capacity, weak sectoral governance, and inadequate infrastructure pose especially serious risks.

“The authorities have limited experience managing the environmental and social impacts of mining, and the legal and regulatory framework was not designed to accommodate a large mining sector. In addition, managing resource revenues presents serious fiscal and macroeconomic challenges that are separate from the governance of the mining sector itself,” it reads.

Meanwhile, the Malawi Government is striving to develop the policy and institutional arrangements necessary for a successful and responsible mining sector.

In partnership with the World Bank, the government has launched the Mining Sector Diagnostic Study and is formulating an ETM Roadmap. The ETM Roadmap is aligned with key regional and continental strategies, including the African Mining Vision, the African Union’s Continental Commodities Strategy, and the Malawi 2063 national vision to ensure consistency with the country’s long-term development goals and the broader regional integration agenda.

The report says that once the ETM Roadmap is completed, the government will be better equipped to define and articulate a clear vision and "whole-of-government approach" for leveraging the mining sector to drive sustainable development and deliver positive socioeconomic benefits.

“Updating the 2013 Mining Policy will provide a comprehensive, forward-looking framework for the mining sector that supports long-term economic growth and community welfare,” says the World Bank.

ASX- listed Lotus Resources says it has signed term sheets with two leading Southern African banks for equipment finance and working capital facilities to support the restart and ramp up of its Kayelekera uranium project in Karonga through positive cashflow.

Lotus MD Greg Bittar says in a statement that Lotus has signed two equipment finance term sheets for up to US$18.5m in aggregate with Standard Bank Plc and First Capital Bank Limited to be used for the purchase or refinance of equipment including cranes, vehicles, machinery and other equipment and another term sheet for a US$20-million working capital facility with Standard Bank plc to finance working capital requirements until expected positive cashflow from Kayelekera production.

“The total current funding including these term sheets is US$135.5-million comprising cash on hand as of December 31, 2024 of US$82-million, US$38.5-million in equipment and working capital finance term sheets and US$15 million unsecured loan facility from Curzon Uranium,” says Bittar.

Bittar also says that Lotus has two conditional uranium offtake arrangements in place for Kayelekera totaling to 1.5-million lbs of uranium for 2026 – 2029, at an escalated fixed price with North American power utility PSEG Nuclear LLC and Curzon Uranium.

He says Lotus continues to advance discussions relating to additional contracts with North American power utilities as the Company is on track to restart uranium production at Kayelekera in the third quarter of 2025, with all key items of equipment ordered, construction crews and mobile equipment mobilised and works commenced, and over 200 workers on site.

Bittar says: “With the restart capital fully funded to first production by our recently completed A$130-million, two-tranche equity placement, these finance facilities provide Lotus with working capital liquidity and funding flexibility as we rapidly progress our accelerated restart program at the Kayelekera uranium mine.”

“The financing banks provided these facilities on very competitive pricing and terms because of the quality of the Kayelekera Project and their confidence in the progress of the restart program, which is on track for first production in third quarter of 2025.”

Meawhile, Lotus has completed the Kayelekera Front End Engineering (FEED) program and the Company in now well positioned to conduct a low capital intensity, accelerated restart of Kayelekera.

Bitter says in the Company’s quarterly activities report for the quarter ended December 31, 2024 that time to first uranium production was reduced to 10 months by phasing in the completion of non-essential site infrastructure, principally grid power and acid plant rebuild beyond first production, and initial restart capital expenditure to first uranium production reduced to US$50M providing an initial restart capital intensity of US$21.0/lb.

He also says Lotus has now ordered all of the key equipment needed, mobilised equipment and construction crews to site and completed the early works program.

Bittar says the Company has also signed a grid connection Memorandum of Understanding (MoU) with the Electricity Supply Corporation of Malawi (ESCOM) and completed the tender process for the appointment of an Engineering, Procurement and Construction (EPC) contractors for the transmission, substation and associated works required for the connection to the power grid.

 “The Contracts are expected to be finalised during the current quarter of the year,” says Bittar.

Lotus signed a Mine Development Agreement (MDA) to resume uranium mining at Kayelekera last year which was in early January this year followed by the signing of a Community Development Agreement (CDA) with privileged communities surrounding the mine.

The CDA is the legislated structure by which the local communities will benefit from the mining operation. A minimum of 0.45% of the mine's revenue is allocated to the CDA fund, which is then used for specific projects that have been selected by the communities through the CDA steering committee.

“The CDA signing ceremony was a well-attended and publicised event that was recognised both locally and in the capital Lilongwe, including by Malawi’s Presidential Delivery Unit,” reads the report.

Key early works completed and long lead orders placed during the ended quarter include: • Camp infrastructure upgrades including water treatment, sewage system and rooms;

• Orders placed for calciner, scrubber and screw feeder for drying and packaging plant;

• Tools and mobile equipment and plant, including man-lifts and telehandlers for construction crew;

• Purchased 70-tonne and 200-tonne cranes for construction and operations and mobilised to site;

• Engineering, Procurement and Construction Management contract issued for acid plant relocation and refurbishment; and • Design package awarded for drying and packaging plant with design now largely complete and steelwork in fabrication.

Stakeholders in the extractive sector say listing of both medium and large-scale mining companies on the Malawi Stock Exchange (MSE) can bring a positive impact to the country’s economy.

In an interview with Mining and Trade Review, Mining Expert Ignatius Kamwanje said listing the companies on MSE can bring ample benefits including generating foreign exchange.

Kamwanje said: “Registering companies on MSE will have economic impacts among them being that the profits will be shared locally which is to enhance money circulation hence opening up some businesses by local shareholders, the company portfolio shall also be strengthened attracting more people to invest in shares.

“Companies may be willing to register in stock exchange but that is subject to signing agreements with the government.” “It is hoped that government will provide flexible conditions or incentives otherwise it is not attractive for foreign companies to get listed locally.”

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid also said registering the companies on local stock exchange could benefit Malawi in areas of revenue generation, local ownership, accountability and transparency and; growing the sector.

Rashid said: “Registering a mining company on a local stock exchange could have a very significant contribution to the economy.”

“The impacts include: increase in local ownership and wealth creation; development of capital markets in Malawi; revenue generation and growth of the economy and; transparency and accountability due to the reporting requirements to shareholders.”

“The listing of mining companies on the local stock exchange though risky has a potential of growing the mining sector in Malawi as this would remove the mistrust and confusion that had existed for a long time on how Malawi benefits from mining.”

He explained that some of the multinational mining companies would register on the local stock exchange for purposes of collaboration if well regulated, a development he described as a breakthrough for local involvement.

  Coordinator for Chamber of Mines and Energy Grain Malunga said listing the companies on MSE will enable the local communities to purchase shares.

“Mining companies will one day register with local stock exchange if they pass the criteria required to register. Stock exchange is a vehicle for making money through buying of shares,” he said.

However, Mining Expert and Seasoned Geologist John Nkhoma said listing the mining companies on MSE can only be done once they kick-start the actual mining.

“I think this can only be done once the companies are in operation, however note that most of the other funding comes from external inputs and also that equipment can be purchased in forex not Malawi Kwacha,” he said.

In a virtual mining conference on mining investment with Malawians in diaspora, the Ministry of Mining Principal Secretary Joseph Mkandawire disclosed that all mining companies have agreed to be listed on MSE once they finalize Mining Development Agreements (MDA).

The move also excited Chief Operating Officer for MSE, Kalline Kondowe who lauded the development saying it will increase investment platforms on the local market. Meanwhile, no medium or large scale mining companies is registered on MSE. 

A grouping of civil society organisations operating in Malawi’s extractives sector the Natural Resources Justice Network (NRJN) has asked the Malawi Government to amend the Mines and Minerals Act 2023 to remove the Retention License and reduce the duration of an Exploration License.

The Mines and Minerals Act 2023 provides resource firms with a Reconnaissance License for a duration of one year with a possibility of extension; Exploration License of three years extendable thrice adding up to nine years in total and; Retention License of five years.

But in an interview with Mining and Trade Review Programs Coordinator for NRJN Joy Chabwera said including Retention and longer duration of Exploration Licenses is retrogressive and against the country’s economic agenda as it results in the nation taking a very long time to start realizing the benefits from the mines.

He said: “The 16 years’ period combining Reconnaissance, Retention and Exploration licenses is against both the Agriculture, Tourism and Mining (ATM) and Malawi 2063 Economic Agenda which has featured highly mining as one of its pillars for industrialization. With that long period, when are we going to start mining?”

“The Retention License is retrogressive; Members of Parliament must remove it.”

“Let us look at 2030 agenda, it is just five years from now, and the agenda talks much about energy transition. By that time, we were supposed to have tangible progress.”

“At the same time, the government needs to manage people’s expectations. Many communities do not know at what stage the projects are but what they know is that very soon they will start benefiting from the project and with the long exploration and retention license duraction, the communities will start suspecting the companies of stealing their resources.”

Chabwera expressed concern that despite including the suggestions in the CSO input when the law was being amended from the 1981 to 2019 and later to 2023, they were ignored and did not have enough time to engage responsible MPs as the process was done within a short period.

He said it is imperative for Malawi to borrow a leaf from other African countries who are progressing in mining activities with no retention license and the shortest exploration period including Ghana and Bostswana.

“Ghana did away with Retention License and of course Botswana has a Retention License but it is conditional and it is only for three years. When we look at their exploration license it is just three years and renewed once for another adding up to six years, and plus retention it totals 9 years.”

“It has strict conditions and requirements for a company to qualify to be granted Retention License hence there are only very few that qualify.”

“As we speak Malawi was supposed to be a country that encourages mining not exploration because with that long period it is almost impossible for Malawi to start realizing benefits from the sector.”

Commenting on the development, Mining Expert Ignatius Kamwanje concurred with Chabwera saying the duration is too long for a serious investor and needs to be shortened understanding that the nation has put much interest in mining sector. Kamwanje said the prolonged duration results in the Exploration Licence (EL) staying idle as it gives room for more renewals.

“Reconnaissance, EL and Retention combined, indeed 16 years is too much. I would propose 10. Why? If an investor has done nothing during the first years of EL, there is no need to renew.”

“Our Act seems flexible and soft on this and was supposed to be looked into with sober minds.”

In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga agreed with Kamwanje that EL needs to be granted for seven years but proposed for strict monitoring and reporting. Malunga said: “EPL should be issued for 7 years after and a bankable pre-feasibility study should be a conducted.”

“Strict monitoring and reporting should be abided by. Retention license should be allowed on the condition that another company interested in the tenement should be allowed to enter into joint venture agreement to continue with the project.”

ASX-listed Lotus Resources, which is advancing preparations to resume mining at Kayelekera Uranium Mine in Karonga, has reported a number of initiatives that it has implemented in 2024 to support the local community in the Kayelekera area as part of its Corporate Social Responsibility (CSR) programme.

    In its Sustainability Report for 2024, Lotus Non-Executive Director and Environmental, Sustainability and Governance (ESG) Committee Chair Dixie Marshall explains that Lotus remains committed to continual improvement of its sustainability performance to ensure that it minimises environmental impacts, supports local communities, and increases the efficiency and safety of its operations.

    Marshall says: “People are our priority. We have focused on supporting the local communities surrounding the Kayelekera mine with health, education, and reforestation. Some of our initiatives at Kayelekera included infrastructure maintenance and repairs to the Sere Bridge, Juma Village access road, Kayelekera football pitch, and walls and floors of the Kayelekera Health Centre and medical staff accommodation.”

   “Supporting our local communities with work and business opportunities is a priority for Lotus. During the reporting period, we are pleased to report that we engaged 369 local contractors to undertake short term contract work at Kayelekera. This is a significant increase compared to Financial Year 2023.”

Community Investment in Kayelekera   

  • Spraying mosquito habitat to reduce the spread of Malaria

The report reads that in order to reduce the number of malaria cases, Lotus performed an annual mosquito abatement program, which involved two spraying campaigns covering Kayelekera, Simfukwe, Juma, and Chiteka villages. The first campaign took place from April 16th to 24th 2024, and encompassed 180 households, helping to improve the wellbeing of the community surrounding Kayelekera Mine.

• Sere Bridge Maintenance

Lotus conducted repairs and maintenance work on the Sere Bridge, which was damaged due to large volumes of rainwater during the wet season. The bridge provides the community and Lotus safe passage across the perennial Sere River.   Lotus engaged two contractors and 17 locals to perform maintenance work, which included reinforcing the concrete on damaged parts of the bridge and erecting gabion baskets to strengthen the bridge against erosion.

Guest of Honour to the Kayelekera Secondary School 2024 Graduation ceremony

 Lotus has been supporting Kayelekera Secondary School through the provision of laboratory materials, teaching aids and facilitating site tours.

  To show their appreciation of the support, Lotus was invited as a Guest of Honour to the Kayelekera Secondary School 2024 Graduation ceremony for the final year students to present the certificates to the best female and male students. Kayelekera community infrastructure maintenance and repairs

The report explains that the Kayelekera team supports the community by using its heavy machinery to repair damaged roads following the wet season rains. In 2024, Lotus graded the roads into Juma and Chiteka to restore access to the schools. Lotus also used its machinery to resurface the Kayelekera Village football pitch to improve the playing surface for local competitions. The Company conducted maintenance at the Kayelekera Health Centre and at the homes of the medical staff, which involved repairing cracks in floors and walls, replacing windows and painting.

 Job opportunities for local community

In August 2024, Lotus engaged 53 people from Kayelekera surrounding communities to undertake a maintenance and stability program at Kayelekera. The work involved pulling down old administration and ablution buildings and leveling and compacting the site, maintenance of the western drain, maintenance of RWP2-sluice drain road and installing gabion baskets on a section affected by ground movement. 

 Marshall explains: “This is one of the largest works programmes Lotus has been able to offer the community since it took ownership of the Project. The work programme went for two months.”

“We actively encouraged women to come work on the project and we successfully employed 10 women. Work opportunities are limited around Kayelekera.”

She reports that Senior Group Village Headman Kayelekera and Mwenechilanga Village Development Committee (for Kayelekera, Simfukwe and Juma) visited Kayelekera mine site to show their appreciation for the jobs created by the project.

In 2024, Lotus also continued to support the community development programs at Kayelekera which it started in the Financial Year 2023:

Health In the health sector the Company undertook the following initiatives:

• Maintained potable water using a solar-powered pump for the Kayelekera Health Centre, Kayuni Primary School, and surrounding communities

• Provided solar power and ongoing maintenance to the Kayelekera Health Centre

• Provided an ambulance to care and transport emergency patients to the Kayelekera Health Centre or Karonga District Hospital and

• Maintained the water supply and power supply at the Wiliro Health Clinic

Education

In education, Lotus

• Provided financial support for tuition fees, school uniforms, and books for 10 students from the St Monica Secondary School in Wiliro

• Continued to sponsor eaght teachers at Kayuni and Juma Primary Schools and

• Provided mock exams and laboratory equipment for Kayuni Primary School students sitting their high school entrance exam

“Lotus aspires to be a responsible uranium producer, building strong local communities, a safe and healthy work environment and making a positive contribution to a carbon free future,” Marshall sums up all.

ASX-listed Globe Metals & Mining says it has signed a non-binding term sheet agreement with South Africa’s Industrial Development Corporation (IDC) for a US$10-million convertible loan available partly in South African rand (ZAR) and partly in US Dollar, marking a significant step towards the early development of the Kanyika Niobium Project in Malawi.

Globe’s CEO Paul Smith announced this in a statement saying the US$10-million loan constitutes 22% of the US$46-million required for the project’s initial development phase which will be supplemented by $15 million in senior debt financing from Ecobank Malawi, announced earlier this year, bringing the total funding secured so far to 54%.

He explains that the funding will contribute to essential project activities, including an updated bankable feasibility study (BFS), detailed front-end engineering design (FEED) and specific early works required for the project’s advancement.

 “The planned funding from IDC allows us to execute crucial components of Kanyika’s development plan, bringing us closer to the project’s Phase 1 development, anticipated to commence in the first half of 2025,” says Smith.

Smith highlights that the term sheet gives IDC the right to convert the loan into equity, securing up to a 25% stake in Globe’s Malawian subsidiary (Project HoldCo) and up to a 19.9% equity in Globe itself.

“This adds credibility to the Kanyika Niobium Project, while reducing risks and attracting further strategic investors,” he says.

Smith says in order to facilitate the funding process, the loan will be drawn in four tranches, with each tranche subject to specific conditions. Tranche one will depend on customary drawdown conditions, including the registration of security while tranche two will require acceptance of the BFS report by the Steering Committee. Trenches three and four will hinge on the approval of the Resettlement Management Plan by Malawi’s Ministry of Lands and before IDC’s funding is drawn, Globe plans to use bridging finance to initiate key pre-development activities, with the intention of repaying the bridging funds once the loan is fully accessible”.

He explains that Globe’s partnership with IDC is seen as a significant milestone for Malawi’s mining sector as it is promoting cross-border collaboration and advancing the sustainable development of niobium, a critical mineral used in high-performance materials.

“With IDC’s support, we are not just securing financial resources but we are building credibility that will draw more investors and set a benchmark for responsible mining practices in the region,” says Smith.

He says the agreement also demonstrates Malawi’s growing appeal as an investment destination for critical minerals.

As Globe advances the Kanyika Niobium Project, the country is set to benefit from increased investor confidence and the development of a sustainable mining sector.

With Phase 1 activities slated to begin in 2025, the project is expected to generate economic opportunities, including job creation and infrastructure development.

The Kanyika Niobium Project (KNP) this year became the first mining project in Malawi’s history to comply and implement the Community Development Agreement (CDA) since the new Mines and Minerals Act- 2023 came into being.

This follows the signing of the long-awaited CDA between the Kanyika Qualified communities (in Mzimba and Kasungu) and the company-Globe Metals & Mining.

Section 169 subsection 1 of the Act stipulates that “a holder of a large-scale mining licence shall assist in the development of qualified communities affected by its operations to promote sustainable development, enhance the general welfare of the quality of life of the inhabitants and shall recognise and respect the rights, customs and traditions of the local communities that are consistent with the constitution.”

Subsection 3 adds that no holder of large-scale mining licence shall proceed to do commercial production before the ratification of the CDA by the qualified affected community. Globe enjoys good relations with the local community of Kanyika, and this relationship has, among other things, seen the company donating learning materials such as desks and chairs to local schools.

Globe, which has a mining licence for the Kanyika multicommodity deposit, also signed a Mine Development Agreement with the Malawi Government. The Company also announced plans to produce high-grade and Tantalum products in Malawi at a Lilongwe-based refinery.

By producing Niobium and Tantalum oxides within Malawi for export to world markets the Kanyika Mine will add significantly to the country’s foreign exchange earnings, boosting the Balance of Payments account and raising the National GDP.

The move by Globe follows extensive research and test-work over the past many months, reviewing and fine-tuning refining technologies to optimise engineering designs for the mining and concentrate recovery processes which are aimed at maximising value from the Kanyika orebody.

By changing the refining technology to a benign process based on the use of chlorine - which is environmentally sustainable and cost-effective - Globe will be able to produce high purity products that attract premium prices from international buyers in the speciality metals markets.

The benign chlorination technology was perfected by Globe’s research partners, and its use in Malawi to produce high-purity metal oxides will replace the original plan for Hydrofluoric Acid (HF) recovery process at a refinery to be located in the United Arab Emirates.

Local Artisanal and Small-scale Miners (ASM) have lamented that some Exploration License (EL) holders are denying them consent to carry out small scale mining operations within their tenements despite the ASMs getting proper documentation from the Ministry of Mining saying it is fueling illegal mining in the country.

In an interview with Mining and Trade Review Rebecca Khembo, a small-scale miner in Rumphi district said despite acquiring preliminary documents from the Department of Mines, she is failing to be granted a mining license due to delays to be given a consent by EL holders.

Khembo said after being instructed by the Department to get a consent letter from the EL holders, she has been trying to engage the companies but nothing has materialised.

She said: “We have been engaging the companies but the response is as usual; ‘let us talk to the director’ and if we follow up nothing happens.”

“Later on what we hear is that the company went to the Mines Department to threaten them on why they are about to give us a license yet they are exploring for metallic minerals and we are after gemstones.

” Khembo said the development is a setback to the ASMs who plan to have licenses and form cooperatives that will assist to transform lives of many Malawians.

In a separate interview, Ian Mbewe, smallscale miner from Mzimba district concurred with Khembo saying the issue  is an obstacle for them to grow their mining business.

Mbewe said: “Imagine one company has over three licenses and one license is about 300 square kilometers which means they have taken over all the land and nothing has been left out for us. If they keep denying us consent where will we mine as ASMs?”

“It is also unfortunate seeing some companies holding licences for metallic minerals mining gemstones illegally. We are wondering; are they really here to develop the sector or just to kill the ASM?”

Programs Coordinator for Natural Resources Justice Network Joy Chabwera, however, said the legal framework is the main problem for the development.

Chabwera said: “The main issue is that EL has exclusive right either to grant consent to ASM or not. But our legal framework does not provide the mandate to Government to instruct the EPL holder to give consent to ASM.”

“Most of the EL holders, who have kept their land idle especially in the northern region, have just acquired the license and they are using it for reference but they are not going to mine.”

“That is why even the issue of having a Retention License does not make sense. When you calculate EL plus Retention License, it is giving the licence holders about 16 years, and I do not expect these companies to give a go-ahead to ASMs to mine gemstones within these years,” said Chabwera.

Chabwera, therefore, proposed for amendment of the law to remove Retention License as well as reduce the number of years for holding EL from the stipulated five years. 

ASX-listed resources group Sovereign Metals says preliminary test results for graphite concentrate produced from its Kasiya Rutile-Graphite Project in Lilongwe have confirmed the suitability of the graphite for use in traditional refractory materials.

These tests, conducted by an independent consultancy ProGraphite GmbH in Germany showed the potential for Kasiya’s graphite to meet global demand in this industrial sector which accounts for 24% of global graphite demand.

Sovereign Metals MD Frank Eagar explains in a statement that the initial independent tests confirm that Kasiya’s coarse flake graphite (larger than 180 microns) has excellent oxidation resistance, with no oxidation occurring below 400°C and a mass loss of only 6.4% after four hours at 650°C.

He says this equates to a very low oxidation rate of just 1.6% per hour, making it suitable for applications in refractory linings used in high-temperature environments such as furnaces, kilns, and crucibles. Furthermore, Kasiya’s graphite boasts low sulphur levels (<0.02%), which enhances its appeal for refractory use by reducing the risk of corrosion and chemical instability.

"High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications. Combining these attributes with the >50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options," Eagar says.

Specifically, graphite is used to increase the effectiveness of the final refractory product by increasing thermal conductivity for efficient heat transfer, decreasing thermal gradient between the hot and cold faces of the product thereby reducing expansion, increasing the resistance to thermal shock which would otherwise lead to cracking or breakage of the refractory, low thermal expansion, reducing the ricks of structural damage and increasing the working life of the product.

Kasiya’s graphite is not just limited to the refractory market as previous studies have confirmed that the material can also produce high-quality anode materials for batteries, particularly for electric vehicles (EVs).

“This dual application of refractories and batteries provides Sovereign Metals with flexibility in securing offtake agreements and diversifying its supply chains,” he says.

Eagar reports that the company’s evaluation of coarse flake graphite for traditional applications will continue alongside optimization work for fine flake graphite. The goal is to generate comprehensive data that will support discussions with potential off-takers and position Kasiya as a competitive player in multiple sectors.

The findings come at a critical time as China, the world’s leading graphite producer that dominates the market by accounting for 75% of global flake graphite production and 96% of spherical graphite used in battery anodes, plans to tighten export controls on graphite and titanium alloys starting in December 2024.

"The reported restrictions further highlight the globally and geopolitically strategic nature of the Kasiya Project, which aims to become the world’s largest producer of high-grade titanium feedstock in the form of rutile and natural flake graphite," Eagar says.

As global markets seek to reduce reliance on Chinese exports, Kasiya’s development could play a key role in stabilizing supply chains while positioning Malawi as a significant player in the critical minerals industry.