Mkango deserves mine development agreement for Songwe Hill

As reported in our front page article, after 13-years of intensive mineral exploration investing over US$30-million, UK firm Mkango Resources is now on the brink of getting a signed Mining Development Agreement and Mining Licence from the Malawi Government for the Songwe Hill Rare Earth Prospect in Phalombe.

This was confirmed when Minister of Mining Monica Chang’anamuno visited the project where she expressed satisfaction with the activities that have been carried out at the site.

Her visit came after Mkango concluded all exploration works and completed and published a final definitive feasibility study on the Songwe Hill rare earth deposit as well as completing a full Environmental, Social and Health Impact Assessment (ESHIA) which was approved and signed off by the Malawi Environment Protection Authority (MEPA) in February this year.

Chang’anamuno explained that the Government is in the process of finalising negotiations for the MDA with Mkango so that the company can raise funds from banks and investors to construct the rare earths mine.

We commend the Malawi Government and Mkango for advancing the negotiations to this stage.

We agree with the Minister that the project will significantly contribute to Malawi’s economy through payment of royalties and other taxes while Malawians including people of Phalombe and Migowi will get jobs and various wealth creation opportunities emanating from the project.

From our perspective, it is not only the work that the company has done in mineral exploration that qualifies it to get the MDA but also the cordial relations Mkango has established with Malawians especially the local community.

Mkango enjoys very good relations with the community as it has in all these years been executing a number of corporate social responsibility activities.

Its interventions included response to disasters which has seen the company donating various items to assist the community in times of disasters including the recent Cyclone Freddy.

Mkango has also assisted in the area of education by painting classrooms of three primary schools in the vicinity of the project site with some content of the school syllabus to facilitate easy learning by the learners.

The Company also introduced a school feeding programme and has been running a scholarship programme for top performing students from the beneficiary primary schools sponsoring their education up to University.

Besides, Mkango, which prioritises employing locals, has constructed access roads, bridges and repaired boreholes in the area.