Mining & Trade News

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.

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