Mining & Trade News

Mineral sector experts are forecasting a vibrant Malawi mineral sector in 2025 and beyond following landmark developments in 2024, which have unlocked growth opportunities for the potential sector.

During the year 2024, the Malawi Government signed three Mining Development Agreements (MDAs) for Kayelekera Uranium Mining in Karonga with ASX-listed Lotus Resources, Kanyika Niobium Mining Project in Mzimba with ASX-listed Globe Metals & Mining and Songwe Hill Rare Earth Mining Project in Phalombe with UK firm Mkango Resources.

Globe Metals & Mining also signed a Community Development Agreement (CDA) with the communities in Mzimba and Kasungu, who are close to the mine as stipulated in the Mines and Minerals Act 2023.

During the year, the Ministry of Mining also facilitated the establishment and operationalization of the Minerals and Mining Regulatory Authority in order to bring sanity in the sector.

Mining Expert and Consulting Geoscientist Ignatius Kamwanje applauded the signing of the MDAs and the Kanyika CDAs saying they manifest political will and willingness to develop large scale mines on the part of government.

Kamwanje said: “2024 sector performance has somewhat been good. To the sector, this is a tremendous and significant development. One aspect which l always advocate for is political will.”

“This means there is a strong political will by the President, Ministers and technocrats and it manifests itself.”

“The sector will contribute significantly to Gross Domestic Product (GDP), employment, tax and royalty remittances, supply chain outlets and infrastructure development within a 3-year period because the signing of these documents means the mines will ramp up operations soon.”

He, however, said though the sector registered some headways this year, the authorities still needs to look into some other aspects.

Kamwanje said: “These include formalization of ASM fully, mining regulations not adopted and devised fully, and the role played by Mining Authority needs a full sensitization campaign through different media outlets for people to understand.”

“Government should also speed up the process of revoking licenses that are staying idle and also monitor exploration activities happening for each Exploration License (EL).”

“My advice is to the Mining Authority, Mines Department and Malawi Revenue Authority (MRA) is to enforce measures and policies to ensure compliance as a country.”

Kamwanje also advised the government to speed up processes of signing more MDAs and CDAs so that Malawi has many mining companies in operation before 2030.

He also tipped the Ministry to collaborate with the Ministry of Trade to facilitate organization of mining Indabas, mining expos, conferences, gallery exhibitions for many Malawians to appreciate the progress made in the mining sector and the role played by the government.

Coordinator for Chamber of Mines and Energy Grain Malunga said though the sector registered recommendable moves, the year started with difficulties that resulted in delays in finalizing MDAs.

Malunga said inconsistence and poor understanding of benefit sharing led to the delays of the MDAs that would been signed in two weeks but yet took two years to be finalized.

Malunga explained: “In 2024, the Mining Sector started with difficulties in negotiating mining agreements. Inconsistence in the presence of the negotiating team and poor understanding of benefit sharing ratios led to delays and frustration on the part of the negotiating parties.”

“Outsourcing of external help by the Government contributed more delays in the process until the Presidential Delivery Unit (PDU) intervened.”

“What failed in two years was concluded within two weeks. Very impressive on the part of PDU.”

Malunga said finalization of the MDAs encouraged companies including Lotus Resources to immediately mobilize financing for recommissioning works at Kayelekera.

He said the development has pulled back production restart to early 3rd Quarter from last quarter.

“Sovereign Metals, Lindian Resources and Globe Metals have made good progress in negotiating for development capital as well. Outlook for economic recovery in 2026 looks good. Government should continue supporting the projects in speeding up permits and approvals for capital equipment and raw materials,” he explained.

 Seasoned Geologist and Mining Expert John Nkhoma said he expects more to be done after signing of the MDAs.

Nkhoma said: “There have indeed been some developments in the sector. However, a lot have to be done for instance, in the case of the regulatory authority, it has employed a Director General before constituting a board and this did not go through the parliamentary committee responsible for such recruitments.”

“We still have to see the developments on the ground after signing of MDAs. All in all, I think there are positive developments, and we look forward to the companies starting the actual mining.”

Head of Mining Engineering at Malawi University of Business and Applied Sciences (MUBAS) Joshua Chisambi said what the Malawi Government has accomplished in the year 2024 represents a significant step forward for Malawi’s mining sector.

Chisambi said the milestones demonstrate the government’s commitment to formalizing and regulating the sector, which is critical for attracting investors, ensuring equitable benefit-sharing, and mitigating environmental and social risks.

He said: “As an academic and practitioner, I see these achievements as a foundation for a more structured and transparent mining industry.”

“The MDAs provide clarity on fiscal terms and responsibilities for companies, while the CDAs ensure that local communities share in the benefits of mining projects.”

“The establishment of the Regulatory Authority enhances oversight, helping to address issues such as illegal mining and unregulated activities.”

Chisambi, however, explained that even though the sector’s future looks promising, there is still a room for some improvements.

He said: “The strides made in governance and policy are commendable, but the translation of these frameworks into tangible benefits such as increased employment, local economic growth, and infrastructure development requires more time and effort.”

“The slow pace of large-scale project implementation and occasional delays in permitting processes remain challenges.”

He further advised the Government to ensure that the newly established Authority is adequately funded and staffed with skilled personnel to fulfil its mandate effectively.  

Chisambi also tipped the Government to expedite policy implementation; promote local content and; community engagement.   Meanwhile, the country’s mining sector still contributes a staggering 1% to Gross Domestic Product (GDP).

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