Mining & Trade News

By Wahard Betha

Stakeholders in Malawi’s minerals sector have expressed concern over environmental degradation in small scale gold mining hotspots across the country where Artisanal and Small-Scale Miners (ASMs) abandon the mines without any rehabilitation after exhausting the mineral reserves.   

Coordinator for Chamber of Mines and Energy Grain Malunga said in an interview that the miners are the ones to be blame as they leave the land out of frustration and ignorance on the need for rehabilitation. 

Malunga said: “The miners are to blame. That is the price government pays when it fails to regulate the sector.”

“ASM gold mining is not as well paying as people think. Some leave the sites frustrated because they earn less and find no need to rehabilitate the sites.”

However, Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid in a separate interview blamed poor coordination between duty bearers including the District Councils, Ministry of Mining and Malawi Environmental Protection Authority (MEPA).

Rashid said the public expected the involvement of MEPA in monitoring such issues.

He said: “MEPA has not been effective when it comes to monitoring the mining cycle. The expectations have been that since MEPA is involved in the licensing and regulation by government, it would also empower district level environmental officers to inspect ASM activities.”

“But currently the government agencies at local government level where the mining activities are happening seem to not be well coordinated with the central government,” he said.

In his response to our questionnaire, Director General for Mines and Minerals Regulatory Authority Samuel Sakhuta said the Ministry is trying its best to ensure that the problem does not get uncontrollable as it is currently working in collaboration with MEPA and the miners to ensure that they move together in monitoring and supervision in major hotspots.

He said: “For instance, at Manondo where we issued a licence to a cooperative which was assisted by Judah Group, we noted that the environment was not in good shape as we found a big trench left by miners who had run away.”

“Because Judah expressed interest in taking over the mine, they hired an excavator and filled these trenches.”

“If we have financial resources, we want to fill all trenches starting from the gold mining hotspots.”

“Of course, we can blame the miners but we, as government, have to bear responsibility and enforce monitoring, supervision and sensitization so that this should not escalate again.”

Sakhuta also said Government instituted a ban on any illegal mining activity to ensure that miners operate with the environmental conservation knowledge in mind.

He said: “We did that because we want them to be acquiring licenses which will also include some measures on how they can conserve the environment.”

“Through the licensing, we will also be able to trace them when we are conducting monitoring or supervision activities,” he said.

ASMs are major suppliers of gold to Export Development Fund (EDF), a subsidiary of Reserve Bank of Malawi, which was entrusted to be buying gold on behalf of Malawi Government.

ASMs continue to discover a number of small scale gold mining sites across the country, and the major ones are located in Machinga, Kasungu, Balaka, Chiradzulu, Nkhotakota and Nkhatabay.

Despite the presence of alluvial gold across Malawi, the Ministry of Mining is yet to discover source rocks as it has been failing to conduct geological exploration to discover the reef gold deposits due to budgetary constraints.

Malawian-owned Mwalawanga Mining Company, the tenement holder for Chimwadzulu corundum mining site in Ntcheu, says it is failing to kickstart mining operations at the site due to continued deterioration of the security situation at the site caused by uncontrolled illegal mining activities.

In a Press Release, the Company explains that illegal mining activities have been going on at the site since November 2017 when it was granted the licence to operate the mine for an initial period of 10 years, and the situation has to date reached unbearable levels to be contained by the company’s security personnel alone.

The Press Release reads: “If you notice what is happening on the ground, you will appreciate that the illegal mining activity which even the government’s first security apparatus, sent previously to the mine, had failed to contain, has created a volatile and unconducive environment for investment to take place on the mine.”

“These illegal miners who are mostly from the surrounding communities and helped by other village headmen, have continuously undermined the rights of the licence holder over the mine as provided under the Mines and Minerals Act 2023 and they continue to attack our mine security personnel if they attempt to stop them.”

“Admittedly, this illegal mining operation has continued to lead to loss of revenues to the government and social benefits to the communities, that would have been realised at the mine, through unauthorised sale of illegally mined gemstone products on a daily basis as we wait to develop the mine after approval of the Environmental and Social Impact Assessment (ESIA) Report in April 2024.”

In November 2017, people from the surrounding area started invading the mine on pretext that the licence of the previous tenement holder Nyala Mines had expired hence they no longer had the mining rights over the mine.

The statement explains that since acquiring the licence, Mwalawanga has had many failed attempts to end this problem of illegal mining at the site. In December 2017, the Company in consultation with the Department of Mines sought the services of the Malawi Police Service to restore order at the mine site for a period of a month. Mwalawanga was responsible for meeting the cost of the security officials who included Mines Department Officers staying at the mine site for a month. Later that month in December 2017, the Ministry through the Department of Mines in collaboration with Ntcheu District Council and traditional leaders conducted a sensitization meeting with the local communities to introduce the new company, Mwalawanga Mining Company.

Delays by previous miner to vacate tenement area

Mwalawanga also says it has been failing to kickstart operations at the site due to delays by the previous license holder to vacate the premises. The Ministry of Mining granted Mwalawanga the mining licence in November 2017 “subject to conducting a full Environmental and Social Impact Assessment (ESIA) prior to commencement of mining operation and adhering to the new terms of the agreements of the licence.”

However, previous holders of the licence, Nyala Mines, dragged government to court contesting rejection to renew their licence while they still occupied the mine premises.

The matter was discharged in favour of the Government on February 13, 2018 at the Blantyre High Court.

“Nyala delayed vacating the mine site following the court case and their refusal to vacate the site in time meant that Mwalawanga could not effectively move in to commence any activity or mine restoration,” reads the Statement.

Following protracted arguments with government warning that it will use force to evict the Company, Nyala finally vacated the mine site towards the end of November 2021 having removed all their plant and machinery and demolished most mine infrastructure.

Activities to start production

Mwalawanga states that despite the impediments emanating from invasion by illegal miners and Government legal wrangling with Nyala, the Company has been conducting activities in preparation to start mining.

For example, in the late 2019, Mwalawanga engaged a South African Mineral Evaluator, MTP Resources, to conduct assessment of corundum and associated minerals (sapphires and ruby) on Chimwadzulu Mine.

In January 2020, the Company submitted a Project Brief to the then Department of Environmental Affairs. This was followed by the Terms of Reference (TORs) granted by the Environmental Affairs Department giving a go ahead for the ESIA activity to commence.

The statement reads: “This meant that by early 2020, whilst the company had embarked on an initial ESIA preparations, the country and the mining sector was heavily hit by the Covid-19 pandemic up to mid-2022. This made the situation difficult to operate as most mining companies had suspended operations. The company later lost one of its founding Directors Mr Ishmael Wadi.”

After the Covid-19 Pandemic effects had eased; in February 2022, the company obtained an introductory support letter from the Commissioner for Mines and Minerals for the ESIA consultant, Chiwandama Geo-Consultant, who was engaged by Mwalawanga to conduct the ESIA in consultation with various stakeholders in Ntcheu District.

By September 29, 2023, the company had responded to ESIA comments and submitted the final document to Malawi Environmental Protection Agency for consideration.

The company already imported a washing plant and other required machinery and equipment which were cleared by the Malawi Revenue Authority for the Chimwadzulu Mine which cannot at this time be brought to the site due to security deterioration through the presence of over 1,000 illegal miners at the site who have outnumbered security personnel.

 The statement reads: “We believe that the situation was even made worse by the Government through Export Development Fund of the Reserve Bank of Malawi through visitation to the Chimwadzulu Mine area where it encouraged the illegal miners to priotise selling the stones to EDF other than foreigner buyers. This statement at the site escalated the illegal activities at the mine as the illegal miners were now offered a ready market for the illegal stones.”

“The company had on several occasions written the relevant government Institutions that include, Ntcheu District Council, Police Officer-In-Charge, and Ministry of Mining for support on the current security deterioration at the mine site.”

The Malawi Environment Protection Authority approved the ESIA for the mine on March 27, 2024.

Following the approval, Mwalawanga engaged an interested Mozambican potential Partner owing to their experience in the gemstone industry across the world on April 18. 2024 to help in the mine assessment and come up with other modalities of mining operation having had the entire surface area scrapped off by illegal miners.

The company in corroboration with the Mozambican Potential partners has been assessing the viability of doing an underground assessment of the source rock geological formations so as to avoid surface mining that has been disturbed and messed by illegal miners.

The Statement reads: “However, due to the continued security situation, our counterpart from Mozambique could not continue to work under a hostile environment with illegal miners surrounding the area of assessment and operation, which was seen as volatile atmosphere to work in and invest and had since left by September 30, 2024. You will even notice that all access roads on the mine have been destroyed by way of digging by illegal miners.”

“Even the Ministry of Mining could not help the company despite several requests to deploy additional security by MDF personnel on site for a specific period since they last publicized the much-touted MOU with Ministry of Defence to protect strategic minerals across the country.”

With no solution from the Ministry of Mining coming forth, the company had a recent stakeholder meeting which was held at the mine premises on September 24, 2024 comprising the Ministry of Homeland Officials from Lilongwe, Officials from the Malawi Police Headquarters in Lilongwe, Ntcheu District Council, Ntcheu Police Station and all surrounding Community Leaders.

It was at this meeting that a resolution has been made to establish a Police Unit at the mine using the mine infrastructure that will only require some renovations and also have the traditional leaders help vacate the community members from the mine site to allow the company bring in machinery and revamp the mine.

The statement reads: “Mwalawanga strongly believes that with a good conducive environment that the government has promised to create for all investors, if managed well, Chimwadzulu corundum is one of the mining products that have the potential to change the economic status of the country and surrounding communities, hence the need to jealously safeguard the mineral resource from this mine is very crucial.”

“It is for this reason that the Company disputes the twisted facts and sentiments from some misinformed officials and other local leaders that Mwalawanga has delayed the operation and can contain the situation at the mine alone.”

“We look forward to support from all stakeholders to develop this mine soonest for the benefits of the country.”

By Modester Mwalija

AXS-listed Sovereign Metals, which is prospecting for rutile and graphite in Kasiya area in Lilongwe has announced that it has successfully installed and commissioned an industrial-scale spiral concentrator plant at its laboratory and testing facility in Lilongwe, Malawi.

Sovereign MD Frank Eagar announces this in a statement saying the plant enables Sovereign to process material from the test pit mined as part of the Pilot Mining and Land Rehabilitation (Pilot Phase) at the Kasiya Rutile-Graphite Project.

Eagar says: “The new infrastructure allows Sovereign to deliver large scale graphite pre-concentrate for qualification by its future potential customers.”

“With a simple and conventional process flowsheet, Kasiya ore is processed at a throughput rate of up to 3 tonnes per hour for continuous sample preparation. Our PFS optimisation continues to advance as planned with oversight from the Sovereign-Rio Tinto Technical Committee.”

He explains that the spiral plant will prepare a graphite gravity concentrate from the Pilot Phase test pit’s run of mine at a bulk scale. The concentrate will then be sent to specialized laboratories for flotation, purification, spheronisation and coating testwork for the battery anode segment in line with Sovereign’s strategy to commercialize Kasiya’s graphite by-product.

This follows the Company’s recent announcement that downstream test work performed by a leading independent consultancy had demonstrated that Coated Spherical Purified Graphite (CSPG) produced from Kasiya natural flake graphite has performance characteristics comparable to leading Chinese natural graphite anode materials manufacturers.

The Kasiya process flowsheet is separated into distinct simple processing areas, namely Wet Concentrator Plant (WCP) and Mineral Separation Plant (MSP)

The WCP will receive mined material pre-screened at 2mm to remove oversize. Simple gravity separation through spirals will produce a Heavy Mineral Concentrate (HMC) and a separate gravity tailings stream enriched in graphite.

At the MSP, the HMC will initially undergo electrostatic separation through a CoronaStat Electric Separator to separate heavy minerals into electrically conductive minerals including rutile, and non-conductive minerals. Magnetic separation will then isolate rutile, which is non-magnetic, from other conductive minerals.

Eagar explains that the graphite tailings stream collected from the gravity spirals will be processed through froth flotation, including polishing and stirred media mills, producing a coarse-flake graphite concentrate and tailings.

“Tailings storage and management will be further refined as part of the ongoing Kasiya PFS Optimisation Study,” states Eagar.

Meanwhile, the Company has also announced that its Kasiya graphite concentrate is confirmed to be an excellent feedstock for natural graphite anode materials suitable for battery production.

Eager says that CSPG anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers.

“Electrochemical testing achieved very high first cycle efficiencies ranging from 94.2% to 95.8%, which supports long battery life. Additionally, there was excellent initial discharge capacities exceeding 360mAh/g, meeting the highest standards for natural graphite anode materials. The material also exhibited a very low specific area (BET) of ≤2.0m2/g minimizing lithium loss during the first battery charging cycle along with excellent tap densities of 1.11 to 1.18g/cm3 which allows for higher electrical storage,” says Eagar

He attributes the unique anode material results to the unique geological setting of the highly weathered Kasiya orebody compared to fresh rock hosted graphite deposits, including high purity of the natural flake, near perfect crystallinity, and very low levels of Sulphur and other impurities.

Combining its results as one of the largest graphite resources globally, industry low operating costs and lowest global warming potential, Kasiya is presenting significant advantages over its graphite peers, positioning it with highest potential to become a dominant source of graphite supply ex-China.

By Modester Mwalija

Women in Malawi’s mining industry play an essential but often overlooked role. Despite their significant contributions to day to day livelihood, their potential remains largely untapped due to systemic challenges that hinder their progress.

In an interview with Mining and Trade Review, President of the Federation of Women and Youth in Mining (FWYM) Flore-Annie Kamanga explained that across the country, particularly in artisanal and small-scale mining (ASMs), women encounter limited access to resources, face health and safety risks and are restricted by cultural norms to pursue some vital roles in the trade.

“The reality is that most women in ASM are doing the hard, manual labour and they work long hours for very little pay. The conditions are often dangerous, leaving women vulnerable to exploitation,” she said.

Kamanga added that women in ASM also face significant challenges when it comes to accessing resources, technology, and training, making it difficult for them to improve their productivity or move beyond low-income activities.

 “Women have very little access to the resources they need, whether it is financial support or access to better technology and this limits their ability to grow in the industry.”

She also said that health and safety risks are another critical concern as women miners often work in hazardous conditions without adequate safety measures or protective equipment, exposing them to higher risks of injury and illness.

“Lack of protective gear is a major issue as many women are working in environments where they are exposed to harmful chemicals and dangerous conditions, and they do not have the necessary equipment to protect themselves.”

She explained that cultural norms further restrict women’s opportunities in the mining industry. These norms often prevent women from accessing higher-paying, skilled jobs, leaving them in roles that offer less financial reward and fewer opportunities for advancement.

“There is still a belief that women do not fit in certain roles in mining especially in the higher-skilled, better-paying jobs,”

Despite these obstacles, there has been some progress in raising awareness to, among other things, include more women in technical and leadership roles. However, Kamanga pointed out that progress remains slow, with gender disparities still prevalent across the sector.

“We are seeing some movement, but it is not enough, there is still a lot of work to be done to close the gender gap.”

Kamanga explained that advocacy groups and NGOs, including the Federation of Women and Youth in Mining, are working hard to promote women’s rights and improve their working conditions.

“We are doing everything we can to empower women in the mining sector and we are advocating for their rights, pushing for better conditions.”

Government has come up with several policies to address suich issues such as the National Gender Policy (2015) and the Malawi Growth and Development Strategy (MGDS III), both of which stress on gender equality and women’s empowerment. However, according to Kamanga, the effectiveness of these policies remains mixed.

“The policies are there, but implementation is where the challenge lies so we need stronger enforcement and better monitoring to make sure these policies are actually benefiting women on the ground.”

Looking forward, Kamanga outlined several key goals for the Federation of Women and Youth in Mining. One of the organization’s primary objectives is to advocate for higher female representation across all levels of the mining industry, from artisanal miners to executives in large mining companies.

“We want to see more women in leadership roles as we are pushing for gender quotas and more inclusive hiring practices to make sure women have equal opportunities,” she said.

Kamanga further said that another goal is to provide women and youth with the skills and education they need to participate meaningfully in the sector.

She said: “The importance of technical training, business management, and leadership development in empowering women to succeed in mining cannot be overemphasized.”

“Education and skills training are crucial, and there is a need to equip women with the tools they need to thrive in this industry.”

FWYM is also committed to influencing national and local policies to better protect and empower women in mining. Kamanga explained that the organization is advocating for stronger enforcement of gender equality provisions and greater support for women miners.

“We need the government to step up and ensure that the laws meant to protect women are enforced,” she said.

Kamanga highlighted that FWYM is building a network of women in mining; providing a platform for them to share resources, experiences, and support, noting the importance of mentorship programs and access to finance for women-led mining enterprises.

 “We need to create a strong community where women can help each other succeed in so doing we can significantly boost women’s participation in the industry,” she said.

She also observed that cultural change is essential for the future of women in Malawi’s mining sector. Through outreach, education campaigns, and partnerships with traditional leaders, FWYM is working to shift perceptions about women’s roles in mining and reduce gender-based discrimination.

Kamanga said: “We need to change how people view women in mining as this is not just about policy – it’s about changing mindsets.”

Besides gender inequality, other problems in small-scale mining sites include child labour, alcoholism, prostitution. marriage breakages and children dropping out of school.

By Wahard Betha

Over two months have elapsed since the Malawi Government signed Mining Development Agreements (MDAs) with Lancaster Exploration (a subsidiary of UK firm Mkango Resources) for the Songwe Hill Rare Earths Mining Project in Phalombe and ASX-listed Lotus Resources for the Kayelekera Uranium Mining Project in Karonga but the Government is yet to make the agreements public.

The two publicly listed companies only published some contents of their agreements with Lancaster listing the key components of its MDA as  5% royalty of gross revenue; 30% corporate tax rate;10% non-diluting equity Interest in the Project to Malawi Government; Exemption from customs and excise duties – Lancaster will be exempted from Export Duty, Import Duty, Import Excise and Import Value Added Tax (VAT) on imports and exports of capital goods as provided in the applicable law; 10 years stability period; 10 years Tax loss carry forward; and Community Development Expenditure as an allowable tax deduction.

On the other hand, Lotus announced in a Press Statement soon after the signing ceremony of the two MDAs that was convened in Lilongwe by the Presidential Delivery Unit that the key features of its MDA for Kayelekera Uranium Mine include:

 • A stability period of 10 years from date of execution during which the Project will not be subject to any detrimental changes to the fiscal regime

• Royalty rate of 5% and the corporate tax rate of 30%

• Tax losses from acquisition are included, with protection from disputes on tax refunds through the principle of tax set-off. The agreement also includes ability to restructure historical loans and tax losses on a tax neutral basis

• Malawi’s currently legislated Resources Rent Tax (RRT), which is not fit for purpose, does not apply. Instead, the Government of Malawi proposes to consider an alternate supernormal profits tax (that may consist of a sliding scale linked to uranium price) to replace the current RRT. The Company will receive a waiver until such time as this is effective.

• Exemptions for import and export duties, excise and Value Added Tax (VAT) on capital goods and on specified consumable items directly related to mine production

• Withholding Tax relief (currently 10% for a mining company) on dividends to Lotus for the majority of the mine life

• The maintenance of foreign currency bank accounts inside and outside Malawi that are supportive of project financier requirements

• A Community Development Agreement with a minimum value of 0.45% of project revenue set aside for community projects

• Specific legal protection is afforded to the Company, including security of tenure, dispute resolution and arbitration and non-discrimination.

But National Coordinator for Natural Resources Justice Network (NRJN), an umbrella grouping of civil society organizations working in the extractives sector in Malawi, said in an interview there is need for government to make public the entire MDAs including taking its contents to local communities affected by the projects.

He said it is incumbent upon the Malawi Government to implement the commitment of open contracting or disclosure of contracts under the Extractives Industry Transparency Initiative (EITI) of which Malawi is a member.

“From January 2021, the EITI standard set a requirement that every country fully disclose any contracts and licenses that are granted, entered into or amended,” he said.

Rashid explained that open contracting or disclosure of contracts is a vital tool in the resource governance that accountability institutions can use to hold the government accountable.

He said the tendency of hiding such agreements involving exploitation of natural resources propagates public suspicion of what is the contained in the agreements.  

Rashid said: “As a country we have to implement the commitment of open contracting/ disclosure of contracts under EITI.”

“Ever since we started mining in Malawi, only very few MDAs have been made public out of all the medium and large-scale mining activities in the country.”

“There is also a very serious corruption risk as though MDAs are signed there seems to be no accountability mechanisms in place for oversight on the executive arm of government and mining companies.”

“For the accountability institutions to hold government to account there is a need for the contracts to be made public.”

He said it is unfortunate that the Government is embracing EITI standards but failing to implement the commitment on the ground.

Rashid said: “The non-disclosure usually erodes public trust in the process as per historical experience that the public have had in the past over other undisclosed MDAs.”

“It is strange that the Government seems to be trying hard to embrace openness and accountability but challenging the efforts of an open and accountable mining sector.”

“One would expect government agencies to embrace the policies that government is proclaiming by proactively disclosing information but we are still kept in the dark leaving the public with suspicions and expectations.”

But Coordinator for Chamber of Mines and Energy Grain Malunga asked for patience from the general public as they are few processes that needs to be done before making the MDAs public.

“The MDAs will be made public. There is no secrecy about them. They have to be scanned and shared. It is long process,” he said.

By Modester Mwalija

Gemstone mining firm Yami Gemstones Lab and Exports Private Limited (YAGLE) says it is encountering critical delays in its projects due to the Ministry of Mining’s failure to complete an inventory assessment.

In an interview with Mining and Trade Review, YAGLE CEO Yamikani Jimusole said the hold-up in completing critical inventory assessments has stalled several of the company’s high-priority projects.

“The delay by the Ministry has prevented us from moving forward with our sales and marketing initiatives, not to mention our ability to form strategic partnerships with investors; this is severely impacting our anticipated returns on investment,” he said.

Jimusole said despite signing a non-disclosure agreement with Export Development Fund (EDF) which is buying gemstones under Reserve Bank of Malawi’s Structured Market, YAGLE is struggling to progress without the required reports.

“We are sitting on unsold inventory that could generate significant revenue, but without authentic gemstone appraisals, we cannot move forward. Investors are growing impatient,” Jimusole explained.

He also said that the delays have also paused their funding request to the National Bank of Malawi, as the bank is waiting for necessary documents from the Ministry of Mining.

Jimusole said his company has been forced to revise several key project timelines like delaying the opening of the Mzimba gemstone mines which was set to be before 2025.

“Other projects, including the Environmental and Social Management Plan (ESMP) for Mangochi operations and the establishment of a Gemmological and Entrepreneurship Institute, have been pushed further to 2026,” Jimusole stated.

Jimusole complained that the Ministry has been slow to respond to their requests despite sending several reminders.

“The last time we heard from them was in May 2024, when we were told by the Principal Secretary, Dr. Joseph Mkandawire, that our request was forwarded for assessment. Since then, nothing,” he said.

In response to the setbacks, Jimusole said it has reached out to various stakeholders with the hope of finding a solution: “We have sent letters to the US Embassy, the International Colored Gemstone Association (ICA), and the Reserve Bank of Malawi, asking for their support in resolving the issues with the Ministry.”

He said such prolonged delays pose long-term risks to both YAGLE and the gemstone industry as a whole.

“If this continues, we are looking at massive financial losses, reduced operational efficiency, and potential reputational damage,” said Jimusole.

He also expressed concern that the delays could disrupt local supply chains and tarnish Malawi’s reputation in the global gemstone market.

Malawi’s gemstone sector holds immense potential for economic growth and development. With more efficient systems, Malawi could unlock the full value of its vast gemstone resources, positioning itself as a significant player in the global gemstone market while boosting local job creation and economic stability.

By Marcel Chimwala

ASX-listed Lotus Resources has announced that it has signed a binding agreement and a term sheet for uranium sales, as well as a binding unsecured loan facility for the restart of its Kayelekera Uranium Project in Karonga.

Lotus CEO Greg Bittar said in a statement that together, the offtake arrangements represent the sale of a minimum of 1.5 million lbs and up to 1.8 million lbs of uranium produced at Kayelekera from 2026 through until the end of 2032 to PSEG, a subsidiary of Public Sector Enterprise Group which is a diversified energy company based in Newark, New Jersey, and Curzon Uranium Ltd, a leading international uranium market participant.

Bittar explained that the contract pricing achieved in the arrangements is the result of competitive discussions and secured to deliver strong margins, including for any optional quantities, for the uranium sold.

 “A fixed-price escalation percentage per annum applies from the time of deliver,” he said.

He said the offtake arrangements, as with the others being negotiated, provide Lotus with the necessary commercial flexibility for Kayelekera’s key production restart milestones and early-stage production levels.

“The term sheet with PSEG is subject to execution of a definitive uranium sale and purchase agreement within four months and Lotus proceeding with the restart of Kayelekera. The binding agreement with Curzon is conditional on Lotus completing an equity raise in conjunction with the restart of Kayelekera,” he said.

The unsecured loan facility provides that the repayment of the facility must occur 12 months from the first utilisation date (unless extended to 18 months from the first utilisation date as elected by Lotus).

Lotus’s continued engagement with North American nuclear power utilities and commodity trading houses for offtake of more substantial volumes of uranium from Kayelekera is designed to leverage utilities’ continuing demand for contract pricing based on the long-term uranium price. It will also support any potential debt funding for Kayelekera’s restart.

Bittar said: “Our first two sales contracts, coupled with unsecured financing with significant drawdown flexibility, mark a terrific milestone for Lotus and our Kayelekera Project, demonstrating customers’ confidence in the strength of the uranium market as well as providing a strong endorsement of our plans for the project.”

“Through the initial offtake and prepayment / funding discussions, we have established critical knowledge and a breadth of long-term industry relationships with multiple substantial strategic customers. This will serve us well as we look to secure further contracts closer to the commencement of production.”

By Tawonga Nyirenda Mayuni

The Assistant Mine Manager for Karonga-based Lisikwa Coal Mining Company Zeru Thopola says there is need for the government to empower the coal industry by facilitating the establishment a coal industry association.

In an interview with Mining and Trade Review, Thopola said the government should come in through the Department of Mines (DOM) and bring together coal miners through an association that can control the operations of the industry.

The call for the establishment of the association comes amidst market woes that have characterized the industry.

Thopola said: “Lisikwa coal mine is facing unfair market competition where by other coal companies tend to lower coal prices on the market, hence we do not get orders. As a result, the company is making little money and struggling to pay bills and wages.”

He also said financial constraints that local coal miners such as Lisikwa are experiencing can be solved once the government establishes a loan facility for coal miners.

“Most of the companies in the coal industry do not have the financial capacity to run their mines but they have mining licences. They wait for other investors with the financial muscle to partner them till the licence expires. If you go to the cadastral licensing system, you will find out that more than 20 companies have licenses for coal but less than five are operational,” Thopola said.

Thopola also added that transportation of coal is another challenge due to poor road conditions, which leads to unexpected breakdowns, delay and accidents.

Commenting on the future of the coal mining industry in Malawi, Thopola said that the future of the coal industry in Malawi needs advanced technology that will require shaft sinking since most of the coal is found deeper than 50 meters.

Lisikwa investments Limited was established in 2008 and employees 150 people. The company currently sells its coal to Illovo Sugar Malawi (Dwangwa) and Presscane Limited.

By Modester Mwalija

ASX-listed Sovereign Metals, which is prospecting for rutile and graphite at Kasiya area in Lilongwe, has announced that it has commenced a hydraulic mining trial at the rutile-graphite prospect as part of the ongoing Pilot Mining and Land Rehabilitation Program.

Sovereign MD Frank Eager announces in a statement stating that the hydraulic mining trial aims to further develop previous test work as part of the Kasiya Optimization Study. 

The trial is being conducted by Fraser Alexander, a global industry leader in hydraulic mining, following successful completion of a dry mining trial in July 2024

“With valuable insights gained from the dry-mining approach at Kasiya, we are now entering the next phase, which includes the commencement of the hydraulic mining tests, processing and backfilling material, and progressing towards the rehabilitation phase which we expect to take approximately three months to complete including backfilling of main trial pit, deposition and rehabilitation test work,” states Eager

He says that the company has also made significant strides in water management for the trial. A temporary water storage pond, filled with six million litres of groundwater from eight on-site boreholes, will supply the water required for the hydraulic mining operations.

“This water will be used during the hydraulic mining trial and continuously recycled from the constructed holding cells where sand and fines fractions will be stored respectively prior to the planned deposition and rehabilitation test work allowing for the recovery of approximately 34% of the water, which will be returned to the water storage pond.”

Sovereign Metals is confident that the successful completion of the hydraulic mining trial and associated tests will further solidify Kasiya as a flagship project for rutile and graphite extraction in Malawi, setting a new benchmark for sustainable mining in the region.

OUTSTANDING BATTERY ANODE MATERIAL PRODUCED FROM KASIYA GRAPHITE

Meanwhile, studies have confirmed Kasiya graphite concentrate as an excellent feedstock for natural graphite anode materials suitable for battery production.

Eagar explains that the Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China as very high quality coated spherical purified graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers.

Eagar comments: “These results confirm that Kasiya graphite concentrate will be an excellent anode material feedstock to the battery industry. Not only is the weathered, saprolite-hosted graphite easy to purify to very high-grades, the anode material produced meets the highest industry specifications. Along with the very low BET specific surface area and high tap densities (both resulting in excellent first cycle efficiencies and initial battery discharge capacities), Kasiya has the potential to become a dominant source of graphite supply ex-China.”

“Combining these excellent results with one of the largest graphite resources globally, industry low operating costs and lowest global warming potential, Kasiya is presenting significant advantages over its graphite peers.”

“We look forward to further test-work and market updates as we continue to develop Kasiya as a supplier of premium quality, cost competitive natural graphite concentrate.”