Mining & Trade News

By Tione Luwanga

In August 2024 Globe Metals and Mining (Africa) Limited became the first mining company in Malawi to comply and implement the Community Development Agreement (CDA) with the qualified communities that surround the Kanika Niobium Project since the new Mines and Minerals Act 2023 came into being.

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.

Chief Mining Engineer in the Ministry of Mining, George Maneya said the historic ceremony demonstrates that the Ministry of Mining is ticking. 

He said: “This is historic. This is in line with the current laws in the Mining Act. The CDA signing will now bring confidence to the community that this project will benefit them. It will also work as a reference point when one party has issues over the project.”

Maneya added that after the signing, the documents will have to go back to the Ministry for final approval.

In his speech, Paramount Chief Inkosi ya Makhosi M’mbelwa V said what was delaying the compensations was the CDA and now that it has been signed, the process should not take ages.

“The CDA is one of the factors that the investors were looking for and now that we have signed, I was reminding the Globe Metals Officials that they should expedite the process because the affected community has been deprived of much needed development because they know that their land has been designated for the mining project,” said M’mbelwa

Globe Metals and Mining Chairperson, Macleod Nyirongo, said the assessment is the company’s priority.

“The signing is a flagship which is saying the community has agreed and so Globe will go to the next step and the next step is to have an assessment. What do people have? Those people who are directly affected by the project. What is the value of the assets that they have? What are they going to be compensated for, so that they can continue with their lives?” narrated Nyirongo.

Nyirongo said following the assessment, the company will develop an engagement plan involving people around Kanyika mine area.  

“We need to prepare an engagement plan to ensure that people understand Globe’s actions are planned and predictable,” said Nyirongo.

Central to the CDA is the management of the 0.45% of gross revenue which will be remitted back to the community as part of Corporate Social Responsibility (CSR), according to the law.

To comply with this, Globe Metals has put a landmark of 0.45 percent to which Senior Chief Mabilabo said is not bad.

“Pasono pano tawapulikiska wa mgodi kuti ka wakwamba waka kwene tili kukamba nawo wa kuti pala vinthu vayamba Kwenda makola mbwenu wazakakwezgeko ndalama iyi panji kufika pa 1 percent, apo mbwe vinthu vikwenda makola. (Currently we have agreed with the 0.45 percent because the company is just starting but we have spoken to them already to consider increasing the amount if the company starts making tangible profits),” he said.

He added that a Board of Trustees, including Trustees from the Northern and Central Regions as well as the Kanyika District, has been established and mandated to handle the resources according to the needs of the community.

Affected District Councils were represented by respective District Commissioners; Rodney Simwaka of Mzimba District council and James Kanyangalazi of Kasungu who signed as witnesses.  

Speaking prior to the event, Simwaka said the two councils’ responsibility will be to monitor the seamless implementation of the CDA.

Government has already given Globe Metals the go-ahead to start the mining operations through the provision of the mining licence in 2021 and approving the Mining Development Agreement (MDA) in March 2023.

The signing ceremony was supposed to take place on June 10, 2024 but was postponed due to the tragic death of the country’s former vice president Dr Saulos Klaus Chilima.

Once in operation the Kanyika Niobium Project, with its large deposit of niobium, tantalum and zircon will be the first such mine in Africa as well as the fourth largest Niobium mine in the world, and has an estimated lifespan of about 25 years.

Niobium is used for high-tech technologies like aerospace, metal, atomic energy and electronics industries. It is also used in the medical field, optical, lighting and chemical industries. 

Globe Metals plans to build the refinery plant in Lilongwe.

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