Mining & Trade News

There is an outcry from different players in Malawi’s minerals sector following an Executive Order issued by State President Arthur Peter Mutharika banning the export of raw minerals.

Mutharika states in the Executive Order that it is aimed at ensuring the sustainable development and utilization of the country’s mineral resources, and to promote the growth of the national economy through value addition and industrialization.

“The purpose of the Executive Order is to prohibit the exportation of raw minerals, promote local value addition, and ensure that our mineral resources contribute to the economic development and prosperity of our Malawi, “he says.

He explains that the order, which came into effect on October 21 this year shall apply to all minerals extracted in Malawi including but not limited to uranium, rare earth elements, niobium, graphite, tantalum, bauxite, coal, limestone, gemstones, heavy mineral sands, vermiculite, phosphate, pyriterutile, gold, diamonds and copper.

“The provisions shall not apply to minerals that have been processed, refined or value added in Malawi in accordance with the laws and regulations governing the mining sector,” states the Executive Order.

But random interviews with stakeholders indicate that the order has heavily impacted on the minerals sector including  exploration firms mainly foreign investors who are failing to export samples for scientific studies outside the country.

Malawi does not have internationally accredited laboratories to conduct sample analysis hence exploration firms export samples for processing in laboratories outside the country.

The ban has also impacted Artisanal and Small-scale Miners (ASMs) mainly those dealing in gemstones. The ASMs send rough gemstones to different countries for value addition since Malawi lacks processing facilities with the lapidary in Mponela, Dowa not sufficiently equipped.

President of the Federation of Artisanal and Smallscale Miners Percy Maleta; whose organisation represents the Malawi Women in Mining Association, Gemstone Association of Malawi, Active Women in Mining Association, Gold Miners Association, Ceramics and Quarry Miners Association, and all other players in the subsector; said in an interview that supporting value addition and local mineral processing is welcome as it increases earnings for local miners.

He, however, lamented that current capacity and infrastructure are insufficient for large-scale processing and marketing of finished products.

“ASM should continue exporting rough minerals while gradually building capacity through training, technology transfer, and market development. Premature restrictions on rough exports could limit growth,” Maleta said.

However, two of the country’s publicly listed major resource firms said their projects will not be impacted by the export ban.

ASX-listed Sovereign Metals, which is pursuing the Kasiya Rutile-Graphite Project in Lilongwe hosting the world’s largest rutile deposit and the second largest graphite deposit, explained in a Press Release that with regards to its future planned Kasiya operations, Sovereign has no plans to export run-of-mine Heavy Mineral Sands as defined in the Executive Order.

CEO and MD Frank Eagar, therefore, said the prohibition does not apply to the Company or the Kasiya Rutile-Graphite Project as the ban only relates to minerals that have not been processed, refined, or value-added in Malawi.

He said: “All future mineralisation will be extracted and beneficiated in country to a final premium quality rutile (+95% TiO2) product. The high-quality Kasiya rutile product is planned to be a direct feedstock for titanium sponge production for high end titanium metal products, including aerospace and defence applications.”

“Similarly, Sovereign intends to process the run-of-mine Graphite as defined in the Executive Order in-country to produce a high-quality graphite product (96% C) suitable for major industry end markets including battery producers and refractory manufacturers. The Company continues to work with the Government of Malawi and the Malawi Mines Department for the ongoing development of the Kasiya Project.”

Another ASX-listed firm Lindian Resources, which is planning to export concentrate from the Kangankunde Rare Earth Project in Balaka considered one of the largest rare earths deposits in the world, said the Company will not be affected as it will process the ore to concentrate form, which is the highest level of beneficiation that is possible in Malawi.

But UK firm Mkango Resources, another firm planning to launch rare earth mining in Malawi at Songwe Hill in Phalombe, announced that it is planning to construct a refinery to process the ore and produce high value rare earth minerals within Malawi.

The Kayelekera Uranium Mine in Karonga, which is Malawi’s only large scale mine in production stage, has a processing plant in Karonga that produces the yellow cake which is hauled to convertors outside the country to produce nuclear fuel. ASX-listed Globe Metals & Mining also announced plans to establish a processing plant in Lilongwe for the Kanyika Project in Mzimba, which is pursuing a multi-commodity deposit that includes niobium, uranium, tantalum and zircon. Meanwhile, The President highlighted these strategic mining projects positioned to drive the nation’s growth and prosperity in his State of the Nation Address in Parliament in which he described mining as a priority sector.

“You may wish to know that Kayelekera Uranium Mine has resumed production. The Kanyika Niobium, Songwe Hill Rare Earths, and Kangankunde Rare Earths projects are advancing toward mine development. Meanwhile, feasibility work is in progress for the Kasiya Rutile and Graphite projects. These key initiatives will give a significant boost to our economy,” he said.

The President further announced that his government will establish a sovereign wealth fund to ensure that proceeds from mineral exports directly benefit the people of Malawi.

“Mr Speaker, Sir, if we get the economy right, we get everything else right,” he said.

The President also highlighted the significance of safeguarding critical minerals with more emphasis on the potential of deposits such as Kangankunde and Kasiya in his meeting with First Minister of Scotland John Swinney.

Malawi is endowed with large deposits of critical minerals including rutile, flake graphite, niobium and rare earths which are on high demand globally as they are important in the production of strong magnets important for the manufacture of electric vehicles, wind turbines and aerospace applications.

The Malawi Extractives Industry Transparency Initiative (MWEITI) has lamented lower compliance percentage from mining companies in submitting vital information as one of challenges impacting its mission to ensure transparency in the mining sector.

In an interview with Mining and Trade Review, MWEITI Secretariat Desk Officer Leonard Mushani proposed for enactment of a legal framework on EITI to hold companies accountable for any misconduct.

Mushani said: “There is a lower compliance percent of submitting data, templates, attending meetings and meeting various requirements by MWEITI.”

“This is so basically because there is no legal framework to support that, and the companies do not feel they are compelled to do that.”

“The answer is to have legal framework to this, which will include penalties and requirements for companies to submit data and documents directly.

” Mushani said MWEITI is considering to conduct general sensitization to ensure that the companies are fully aware and understand what EITI is all about.

The EITI Standard is a global benchmark for transparency and accountability in the oil, gas, and mining sectors. As a framework for disclosure and multi-stakeholder oversight, the EITI Standard is designed to; empower governments, industry and civil society to promote understanding of natural resource management and; strengthen public and corporate governance and accountability; and provide the data to inform policymaking and debate.

However, reacting to the development, Mining Expert and MD for Chiwandama Geo Consultants John Nkhoma advised MWEITI to scale up engagement with the companies. Nkhoma also advocated for legal framework to govern the works of MWEITI so that it becomes fully mandated.

“I think there is need to rethink MWEITI. They should not be doing things as if they have all powers. This was started by overzealous individuals and now the institution is operating as if they were fully mandated to do so,” said Nkhoma.

Concurring with Nkhoma, Coordinator for Chamber of Mines and Energy Grain Malunga said the challenge on non-compliance can only be dealt with if MWEITI becomes a legal entity. He said: “it is difficult for the Chamber to help in addressing this.  

The Chamber has only 16 companies as members while the country has over 50 explorations and mining companies.” “MWEITI is a non-legal entity and membership to the Chamber is voluntary and this poses a challenge in terms of legal compliance.”

“Formalisation of MWEITI as a legal entity and increased membership of the Chamber will help promote transparency and accountability on revenue transactions in the mining sector and make MWEITI more effective.”

Apart from non-compliance, MWEITI continue to suffer from the problem of inadequate financial resources to intensify information dissemination; enforcement of accountability requirements and; political will sustainability where they complain that politicians are fond of stopping what others started. Malawi became a member of the Extractive Industries Transparency Initiative in October 2015 and to date has managed to produce eight EITI reports.

Federation of Artisanal and Small Scale Miners (FASMM) President Percy Maleta conducted an educational visit to Tanzania’s small scale gold mines. Mining & Trade Review’s Tawonga Nyirenda Mayuni engaged Maleta to find out what he learnt from the visit. Excepts

• What were the primary objectives of your educational visit to Tanzania’s small scale gold mining sites?

The main objective was to learn from Tanzania’s successful approach to formalizing and empowering the artisanal and small-scale mining (ASM) subsector. Tanzania has established strong institutional frameworks, including cooperatives and partnerships between government, miners, and private investors. For us in Malawi, this visit aimed to draw lessons on how to organize, regulate, and commercialize ASM operations to ensure miners benefit fairly from their work while contributing meaningfully to the national economy.

• What key insights or knowledge have you gained from this visit so far?

We have learnt that structured organization, policy consistency, and supportive infrastructure are key to ASM success. In Tanzania, the presence of gold trading centres, mineral associations, and strong collaboration with the Central Bank ensures transparency and better pricing for miners. We have also seen the power of value addition and local beneficiation, where miners do not just extract but also process and refine their minerals locally.

• In what way does this experience support the development of Malawi’s ASM subsector?

This visit provides us with a practical roadmap to improve our own ASM ecosystem. We have seen how decentralization of licensing, creation of mineral markets, and technical support can uplift small-scale miners from survivalist activities to sustainable enterprises. These lessons will help FASMM engage policymakers and advocate for a more enabling environment for ASM operations in Malawi.

• How important is regional knowledge sharing and capacity building among artisanal miners across neighbouring countries?

It is extremely important. Our challenges in ASM are similar—lack of access to finance, equipment, markets, and technical expertise. Regional collaboration allows us to exchange ideas, technologies, and solutions that have already worked elsewhere. It also builds solidarity among miners, ensuring we grow together as a region rather than in isolation.

•  How can exposure to international mining exhibitions and interactions with officials benefit Malawian miners?

Such exposure opens up new possibilities. Our miners can learn about emerging technologies, safer mining practices, and access to markets beyond our borders. Interacting with officials and experts helps build networks for investment and technical support. It also boosts confidence among our miners, showing them that they are part of a global industry with real opportunities for growth.

• During your visit, you met Tanzanian officials from the Ministry responsible for mining and gold dealers. What specific outcomes or collaborations did you  achieve through these engagements?

We hope to establish partnerships for training, mentorship, and knowledge exchange. We also aim to explore possibilities of linking our miners to established gold dealers and refineries in Tanzania for fair trade and better value realization. Furthermore, we want to harmonize cross-border trade policies to make it easier for ASM operators to benefit legally and transparently from regional markets.

• Are there particular policies, practices, or technological approaches from Tanzania that Malawi could consider adopting?

Yes, several. Tanzania’s establishment of Mineral Trading Centers is a game changer—we would like to replicate that model to reduce smuggling and increase local revenue. Also, their cooperative model, where small miners work under registered associations with shared equipment and government support, is something Malawi can adopt. On the technology side, Tanzania’s small-scale gold processing facilities and mercury-free recovery systems are worth introducing in Malawi.

• In your opinion, how can mining exhibitions and international interactions foster partnerships, facilitate technology transfer, and improve market access for artisanal miners?

Exhibitions create direct linkages between miners, equipment suppliers, financiers, and buyers. They expose our miners to innovations that make mining safer, cleaner, and more productive. Through these events, we can attract investment into Malawi’s ASM sector, build partnerships for training, and open pathways for our gemstones and gold to reach fair international markets.

• Are there specific innovations or technological advancements you were interested in exploring during this tour?

Yes, we are particularly interested in small-scale processing technologies that are environmentally friendly, such as mercury-free gold recovery systems, and affordable gemstone cutting and polishing machines. We also want to understand how Tanzania has integrated digital systems in licensing and mineral traceability, which enhances transparency and market confidence.

• How do you envision regional cooperation among Malawi, Tanzania, and other neighboring countries strengthening artisanal mining industries?

Regional cooperation can create a powerful block of shared knowledge, fair trade, and stronger bargaining power in global markets. By aligning our mining policies, sharing geological data, and standardizing pricing mechanisms, we can protect the interests of small miners and ensure they benefit fully from their labor. It can also reduce illegal cross-border trading and promote responsible sourcing.

• What strategies or steps can be implemented to enhance cross-border collaboration and facilitate effective information exchange?

We propose creating a regional ASM platform or network for continuous dialogue among miners’ associations, ministries, and the private sector. Joint training programs, exchange visits, and shared research can enhance learning. Governments can also formalize bilateral agreements to support legal trade, harmonize taxes, and simplify procedures for small miners moving goods or equipment across borders

Stakeholders in the extractives sector have welcomed the newly appointed Minister of Natural Resources, Energy and Mining Honourable Jean Mathanga MP wishing her success in transforming the sector into a key economic enabler as defined in Malawi 2063.

A number of key stakeholders have conveyed best wishes to the new Minister including the Ministry of Natural Resources, Energy and Mining itself, Malawi Mining and Mineral Resources Regulatory Authority, Malawi Mining Investment Company, Mkango Resources, Trinity Ventures, Cement Products, Crown Minerals. Terrastone, Sovereign Metals, Lotus Resources, DY6 Metals, Globe Metals and Mining, Akatswiri Mineral Resources, Equipment & Parts, and Shayona Cement Corporation.

The office of the President and Cabinet announced Mathanga’s appointment on October 30, 2025 in State President Arthur Peter Mutharika’s full cabinet list.

The appointment came after Mutharika had instituted a ban on the exportation of raw minerals from Malawi which has hit hard exploration companies that export samples for processing in laboratories outside Malawi and small-scale miners who export rough gemstones.  

Coordinator for Chamber of Mines and Energy Grain Malunga in an interview asked the Minister to ensure that she understands the process of mineral resource development and the role of sampling in discovering a mineral deposit. “The issue of samples and export of raw minerals such as gemstones are a big challenge for Malawians to understand,” he said.

Project Exploration Geologist [Africa] for DY6 Metals Geoffrey Chimzimu Banda commented that it is important for government to continue implementing some of the productive initiatives left by the previous administration such as supporting the work of Malawi Mining Investment Company (Mamico) to ensure sustainable mineral resource management. Banda said in order to ensure transparency and accountability, the government should employ qualified geologists to monitor and police mineral activities along the country’s borders and airports to curb illegal mineral smuggling and ensure that all mining operations comply with national laws and environmental standards.

He said: “Furthermore, the government should encourage mineral exploration by supporting geological surveys and creating a conducive environment for international investors to attract foreign direct investment, generate revenue, and expand employment opportunities within the sector.”

­­“It is also crucial for the government to engage all stakeholders and clarify its position on current mining bans, ensuring that decisions are informed by technical expertise. Mining is a sensitive and strategic industry; therefore, professional geologists, mining engineers, and environmental experts must be involved in the decision-making process.”

“In addition, the government should invest in civic education on mining to promote public understanding of the sector’s importance and challenges. Introducing mining as a subject in secondary schools would be a strategic step towards early awareness, capacity building, and skill development. Employing young geologists and mining engineers as educators would not only enhance awareness but also create much-needed jobs for graduates in these fields.”  

Taxation Experts urged government to review the statutory fiscal regime for the mining sector and ensure that it does not open it for project level negotiations as was the intention in 2016 when Malawi’s fiscal regime was amended.

“By ensuring that the fiscal regime is determined by the law as is the case in Zambia, Chile and Australia, there will be greater revenue certainty for the government, lower risk of protracted negotiations and unnecessary tax exemptions and better stability and security,” said a commentator Rachel Etter Phoya.

Investors from India asked the Government to sign a double taxation treaty with India in order to prevent the taxation of the same income in both countries, which is a stumbling block for investment in Malawi.

President of the Federation of Artisanal and Small-scale Miners in Malawi (FASM} Percy Maleta asked the new administration to support Artisanal and Small-scale Miners saying ASMs retain most proceeds within Malawi, stimulate local employment, and increase government revenue.

Maleta said: “Supporting local value addition is welcomed as it increases earnings for local miners but current capacity and infrastructure are insufficient for large-scale processing and marketing of finished products.”

“ASMs should continue exporting rough minerals while gradually building capacity through training, technology transfer, and market development. Premature restrictions on rough exports could limit growth.”­

Chairperson for Human Rights Consultative Committee (HRCC) Robert Mkwezalamba urged the new Minister to bring order in the sector in line with Mines and Minerals Act (2023) so that those doing illegal mining are clearly identified while the government is trying to set up itself.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid called on the new Minister to make natural resources work for all Malawians through transparency, accountability, and inclusivity. Rashid also called for urgent reforms in the mining sector by strengthening institutional capacity, streamlining licensing to support ASMs, and ensuring contract and revenue disclosure by championing the Extractives Industry Transparency Initiative (EITI).

He said: “We further advise prioritizing community benefits, strict environmental stewardship, and meaningful public participation. The current government needs to work on the policies and laws in the extractives sector to align with Malawi 2063 Vision, African Green Minerals Strategy and the Africa Mining Vision.”

“By doing so, Malawi can transform its mineral wealth into a genuine driver of sustainable and equitable national development.” He also appealed to the new Minister to ensure that she prioritizes building an enabling environment in the extractives sector, mainstreaming value realization, and developing strong revenue management systems.

Southern Region Leader for National Youth in Mining (NAYOMI) Aubrey Duwa appealed to the new Minister to consider giving the youth training and loans in order to operate legally in the sector. Duwa said many youths in the sector are considered illegal operators due to lack of resources to undergo all registration processes.

Duwa said: “We need training and loans so that we are able to pay for certification and then mine from the point of registration with the activity well regulated.”

“Is not that the youth are not interested to formally operate but we are lacking support and the new Minister needs to make sure that the youth are getting all needed support to ensure that before venturing into actual mining, they go through all registration processes.”

“We also dream of advancing to start using machinery for instance to start using water pumps other than moving water in buckets.”   A survey by MAMICO established that youth and women dominate the ASM subsector contributing 78 percent.

The Norwegian Church Aid and Danish Church Aid (NCA/DCA) Malawi Country Programme (JCP) has asked all players in the extractives sector to join hands in advocating for good mining governance that contends inequality in the sector by giving power to all players including communities in mining areas.

In his keynote address at the 7th Malawi Alternative Mining Indaba 2025 (MWAMI2025), Country Director for NCA/DCA Malawi JCP Stefan Jansen said now it is time to start seeing mining activities benefiting the local communities.  

Jansen said: “Let this Indaba be more than a conference but also a movement where communities speak the truth to power, and where government, civil society, and industry stand shoulder to shoulder not to extract more, but to build better.”

“A movement that insists our minerals must power our schools, our hospitals, our solar grids, not just distant factories and foreign stock markets.”

“If we say, “Power to the People,” then power must mean something real; land rights, transparency, fair contracts, clean water, and voices that are heard and respected.”

Jansen said benefits of mining to the country will remain only a dream if players do not transform the mining sector to benefit the grassroots; and power the nation’s industrialization to realise the Malawi Vision 2063 dream of becoming an inclusively wealthy, self-reliant, and industrialised upper-middle-income country.

“The presidential ban on raw mineral exports gives us a strong foundation. But now, we must build the house; a just, inclusive, and sustainable mining economy that truly serves Malawians,” he said.

Jansen, however, acknowledged progress made in the sector including; the creation of the National Mining Company, the establishment of a new regulatory authority and increased funding to the sector which are signs of government commitment. He, however lamented the tendency of making progress on paper and not on the ground, saying it is what is killing the sector in the country.

Jensen said: “Our teams at NCA-DCA, together with our partners, have spent time in the mining communities and the stories we hear are deeply troubling.”

“While budgets grow, secrecy over licensing persists. While policies multiply, illegal mining continues. While contracts are signed, communities remain silenced. Citizens are still left in the dark about who benefits and who bears the cost. Too often, miners, strangers, arrive on ancestral land without courtesy and without our knowledge. This is not the energy future we want.”

The indaba which was organized under the theme ‘Power to the People: Owning Malawi’s Energy Future’ attracted players from Government, Civil Society Organisations, private companies, traditional leaders, community members, and various media outlets.  

Acting Director for the Department of Mines in the Ministry of Natural Resources, Energy and Mining Mphatso Chikoti hailed the indaba saying it brought together diverse stakeholders including women, youth, communities, and private sector actors who were not just participating but actively redefining what inclusive and sustainable development means for Malawi. Chikoti said there can be no sustainable mining without the full, meaningful, and equitable participation of all citizens across the mining value chain.

He said: “This forum reminds us that progress is not built overnight but step by step through dialogue and collaboration.” “Indeed, since we last met in Mangochi, we have continued to build on that collective foundation.”

“The 2024 Indaba in Mangochi called upon all of us to strengthen transparency, accountability, and inclusivity in the sector.”

“I am pleased to report that we have made significant strides since that engagement.” Chikoti applauded the strategic political alignment saying it underscores Government’s recognition of the mining sector as a key pillar for transforming Malawi’s economy, enhancing industrialisation, and generating the much-needed foreign exchange.

He said the merger of natural resources, energy, and mining under one ministry is not by coincidence but a reflection of Government’s understanding of the strong interlinkages between the three sectors.

Chikoti explained: “Mining requires reliable and affordable energy while energy development depends on access to critical minerals; and both depend on sustainable management of our natural resources. Having them under one roof ensures integrated planning, and coordinated implementation in order to maximise socio-economic impact.”

Malawi currently has over 1,200 mineral licences including for key projects such as Kayelekera Uranium Mine in Karonga, Kanyika Niobium and Tantalum Project in Mzimba, Songwe Rare Earths Project in Phalombe, Kangankunde Rare Earths Project in Balaka, and Kasiya Rutile and Graphite Project in Lilongwe.

Chikoti also said through Malawi Mining and Minerals Regulatory Authority (MMRA) the Ministry has intensified enforcement operations in several hotspots across the country which are complemented by formalisation drives and awareness campaigns targeting ASMs.

He said: “Through the Mines and Minerals Act, mining companies are now required to submit employment, procurement, and business development plans that prioritise Malawian participation, in addition to the mandatory Community Development Agreements required by large-scale mining licence holders, to ensure that local communities directly benefit from mining projects.”

“Devolution of mining functions from the Ministry of Natural Resources, Energy and Mining to district councils is in its final stages to strengthen local-level oversight and integrate mining governance into district development planning.”

“However, progress on the ground must be matched with progress in our policies and for this reason, the Ministry has continued to review and modernize the frameworks that guide our sector.”

Meanwhile, the Ministry is in the process of reviewing the Mines and Minerals Policy of 2013 to align it with emerging trends such as artificial intelligence, digital mining systems, and sustainability-focused innovations to ensure legal and policy frameworks remain relevant and future-ready.

It is also in final stages of finalising the ASM Policy, a dedicated policy expected to provide clear guidance and protection for artisanal miners, strengthen safety and environmental compliance, promote access to finance and markets, and ensure that small-scale mining contributes meaningfully to both local and national economic development.

Currently, the mining sector is rocked with challenges of illegal mining, limited local capacity, environmental degradation, and low community awareness.  

Government has been urged to decentralise the mining sector to give districts with mineral deposits more power in decision making in the extraction of the minerals and utilization of revenue from mineral sales to ensure increased benefits of mining in development of the districts.

Phalombe District Commissioner Douglas Moffat made the appeal during an orientation workshop for the district council officials and civil society organisations in the district on mining governance and just energy transition (JET).

He said the decentralisation of the mining sector to district councils would help officials to carry out governance issues on mining and ensure that communities are sensitised on how the mining industry operates. Moffat said decentralization wouldl also help the coucils to have adequate funding as well as increasing  the number of qualified personnel to handle mining issues including scaling up awareness to the local communities.

He said: "Mining is happening in the villages at Area Development Committee (ADC) level. We need somebody who has the capacity, the know-how, trained in mining, and geological capacities. We do not have that.

Therefore, if that capacity is only existing in Lilongwe, that is a problem. How are we going to advise local people and the miners on whatever has been written in line with the Mining Law? We need that capacity at the district level so that we can advise the council adequately.

"We cannot facilitate the mining processes if we do not have the capacity. Otherwise, it is going to be trouble. We have heard where local people rise against the office of the District Commissioner (DC) whenever there is a mining company with necessary papers doing its job. It is because there is no capacity, the office of the DC struggles to align with the demand when such services are required. So, it is indispensable for the mining sector to devolve and make sure that it has specific officers to handle mining issues in the district."

Moffat suggested that government should pilot the designation of mining officers in all districts which are experiencing an increase in the proliferation of mining activities. Centre for Environmental Policy and Advocacy (CEPA) Executive Director Herbert Mwalukomo, whose organisation arranged the orientation meeting, said it is crucial to build the capacity of local councils with knowledge on mint ing laws and regulations.

“One of the natural resources that the country is endowed with are minerals. Knowing that government recently signed some mining development agreements including with Mkango Resources for rare earth mining in Phalombe, we saw it a necessity to come here and work with various stakeholders including the community to increase awareness of various stages of the mining project,” he said.

Phalombe District is rich in rare earth minerals with major deposits at Songwe Hill. Director of Mining in the Ministry of Energy and Mining Mphatso Chikoti and Leonard Mushani Principal Economist in the Ministry of Finance and Economic Development were among the resource persons at the meeting.

The Malawi Mining Regulatory Authority, which governs mining activities in Malawi including issuing of licences, operates from the capital city Lilongwe but the country has regional Mines Offices in Blantyre and Mzuzu.

Decentralisation will ensure that District Mining Officers are appointed and increase access to mining services by rural communities whose areas host a number of mining projects.

Communities in Balaka District have raised concerns over environmental degradation, water pollution and limited community benefits from mining activities in their areas, calling for transparency and accountability from both mining companies and government authorities.

The concerns were voiced during a meeting at Balaka District Town Hall Meeting, organized by ActionAid Malawi in collaboration with the Natural Resources Justice Network (NRJN) under the Climate Just Transition for Mining-Affected Communities Project.

The meeting brought together communities and duty bearers from Traditional Authorities Chathunya, Phalula, and Nsamala to discuss challenges resulting from mining activities and agree on practical solutions for fair and climate-just practices in the sector. ActionAid Malawi Project Officer Charles Fines Phiri said the meeting aimed to bridge the gap between affected communities and authorities in the mining value chain.

Phiri said: “The main purpose of this meeting was to bring together duty bearers and the communities affected by mining activities.”

“We have identified  several challenges, including environmental degradation and gender inequalities in the sharing of mining dividends. Youth and women are marginalized and getting very little from these activities.”

He expressed concern over serious environmental risks in the district, citing mercury pollution in one of the rivers under Traditional Authority Phalula.  

“The pollution comes from the use of mercury in gold processing, which is harmful to people, animals and plants in the area,” he said. Phiri said the town hall discussions resulted in positive progress, as communities openly shared their experiences and authorities responded with timelines to address the issues raised.

“Duty bearers have committed to take action and communities are waiting patiently to see change on the ground,” he said.

The one-year project, funded by SwedBio runs from January 2025 to January 2026, targeting over 800 beneficiaries across Balaka and Nkhotakota districts. A community representative, Alena Maseko from Kangamkunde Village under T/A Chathunya, expressed mixed feelings about the conduct of Lindian Resources, a company operating in the area.

Maseko said: “We are aware of the environmental effects of the mining activities, especially dust from the road construction near our homes.”

“The company repaired our broken water pipes after complaints, but the dust problem persists and is endangering our health.” She added that despite promises to reduce dust by watering roads daily and providing milk to nearby residents to mitigate dust inhalation risks, the company has not fully honored these commitments.

She said: “They said they would be watering the roads daily and giving milk to residents, but this has not been happening.”  

“Sometimes it takes two or more days without them watering the roads.” Maseko also raised questions over the status of the Kangankhunde Forest, which the community has long relied on for tree planting, bamboo and beekeeping.

“The forest was listed as a village forest in the second phase of compensation by Lindian, but we do not know who will receive the compensation or how it will be calculated,” she explained.

The Balaka Town Hall Meeting is part of ActionAid’s broader initiative to promote a climate-just transition in Malawi’s mining and energy sectors by enhancing community participation, gender equity, and transparency.

Balaka is a beehive of mining activities. Besides the Australian Company Lindian Resources pursuing one of the largest rare earth resources at Kangankunde, Portalnd Cement is also mining limestone at Chenkumbi where it has developed a clinker plant. There is also small scale limestone and alluvial gold mining in the district.

Mkango Resources has entered into a Project Development Funding Agreement with the United States International Development Finance Corporation (DFC), the U.S. government’s development finance institution, to secure US$ 4.6 million in reimbursable funding as part of the DFC’s Project Development strategy for the Songwe Hill rare earth project in Phalombe.

The funds will support Project Development activities in the form of Front-End Engineering Design (FEED) and value engineering studies.

Mkango President Alexander Lemon explains in a statement:  “The Project Development Funding will be equally matched by the firm’s contributions over the next 18 months.”

“Further, for a period until five years after the termination of the Agreement, the DFC will have the right (but not the obligation) to directly provide and/or arrange for financing or investment for the Project on commercial terms substantially comparable to or better than the terms of other financing options available to finance the Project when considered in conjunction with the other benefits brought by DFC to the Project in connection with the Project Development,” states Lemon.

The DFC’s Project Development product is part of the U.S. Better Utilization of Investments Leading to Development (BUILD) Act and provides support for high-impact companies to overcome operational, financial, and developmental challenges, thereby enhancing project viability and readiness for future investment.

Project Development Funding is tailored for projects with the potential to receive later DFC project financing of 100 Million U.S dollars construction financing.

Lemon says: “I am delighted to announce the participation of the DFC to assist Mkango to fast track the development of the Songwe Hill Rare Earth Mining Project in Malawi.”

“The US Government’s DFC recognizes the game-changing development potential of the Songwe Hill Rare Earths deposit and this initial Project Development Funding provides a path for Mkango to secure the longer-term development funding needed to develop Songwe Hill and positions the Mkango group as one of the few key players in the global rare earth supply chain.”

About the U.S. International Development Finance Corporation

The U.S. International Development Finance Corporation, established in 2019 with bipartisan support under President Trump, is America’s development finance institution. DFC partners with the private sector to advance U.S. foreign policy and strengthen national security by mobilizing private capital around the world.

DFC invests across strategic sectors including critical minerals, modern infrastructure, and advanced technology — fostering economic development, supporting U.S. interests, and delivering returns to American taxpayers.

USA NASDAQ Stock Exchange Listing

Mkango’s corporate strategy is to become a market leader in the production of rare earths.

Lancaster Exploration Limited (expected to be renamed Mkango Rare Earths Limited), owner of the Songwe Hill Rare Earths Project ("Songwe Hill") which will be producing a high value add purified mixed rare earth carbonate in Malawi and is designated as a strategic project under the EU Critical Raw Materials Act, is also applying for a listing on the New York US Nasdaq which will be the first Malawian business to list as a publicly traded company in the USA. Songwe Hill is also supported by the Minerals Security Partnership. The company will also be listing on the Malawi Stock Exchange.

Songwe Hill is part of a vertically integrated, pure-play global rare earth platform, with the goal to provide a mined, refined and separated supply of rare earth oxides to supply chains across North America, Europe, Africa and Asia.

Songwe Hill is one of the very few rare earth projects globally to have completed a NI 43-101 compliant Definitive Feasibility Study ("DFS"), with a full Environmental, Social, Health Impact Assessment ("ESHIA") completed in compliance with IFC Performance Standards.

The Ministry of Mining has with immediate effect suspended all small scale gold mining operations in Kasungu District following a tragic accident which has cost lives of eight people and injured five in Kasalika Village, Traditional Authority Suza’s area.

Principal Secretary Betchani Tchereni and Director General for Mining and Mineral Resources Regulatory Authority Samuel Sakhuta state in a joint Press Release that the ban will allow them to finalise their due diligence on the incident that resulted from informal artisanal gold mining activities that continue to attract multitudes in the district.

In accordance with the Mines and Minerals Act, 2023, (No. 25 of 2023), Section 35, any reconnaissance, prospecting, exploration, or mining without a valid mineral tenement or artisanal mining permit constitutes a criminal offence. Offenders are liable to a fine of K20,000,000 and imprisonment for up to four years and that courts may also order land rehabilitation, with costs recoverable as a debt to the government if the offender fails to comply.

Reads the statement from the Ministry: “The Ministry and the Authority extend their deepest condolences to the bereaved families and reaffirm their commitment to preventing such tragedies in the future.”

“The Ministry of Mining as well as the MMRA are aware that illegal mining operations are taking place in several parts of the country, involving a range of minerals.”

“Based on the site visit that the MMRA carried out on 30th September, 2025, there are more people involved in illegal mining activities in the area which pose serious risks to public safety, the environment, and the integrity of the mining sector despite the efforts taken to curb the malpractice across the country.

“MMRA will enhance enforcement by carrying out joint inspections with law enforcement agencies to close illegal operations and prosecute offenders.”

The MMRA also announced that it will carry out community awareness campaigns aiming at intensifying education efforts across affected districts to highlight the dangers and legal requirements of mining.

The statement says: “The Ministry of Mining and the MMRA are carrying out a comprehensive investigation to determine the circumstances of the recent incident and identify those responsible.”

“The Ministry of Mining will train cooperatives that will be formed in these areas while the MMRA will issue small-scale mining licences to formalise the activities.”

The Ministry of Mining and the MMRA appealed to community leaders and local authorities to discourage illegal mining and promote legal alternatives as well as support in monitoring and reporting of illegal mining. They also urged Malawians to report illegal activities, particularly where safety is at risk.

But reacting to the statement, Artisanal Small-scale Mining (ASM) consultant Chikomeni Manda said the ban will just worsen the situation as currently the escalating illegal mining activities across the country are due to another ban on exporting of gemstones as well as delays by the Ministry to issue ASM licences.

Manda said: “Do you think this ban will hold in Kasungu? No, it is just like the gemstone export ban that has not worked because smuggling has increased hence activities of only legal operators have been impeded.”

 “Why can Government not sit down with the miners/ ASM Federation, CSOs and many other stakeholders to find a proper solution to address some of these challenges being faced than imposing these useless bans which do not work at all?”

He reiterated the need for Reserve Bank of Malawi (RBM) who are buying gold across the country to start giving back to the community by offering trainings to ASMs.

Mining Expert and Geoscientist Ignatius Kamwanje said the blame on the incident should go to both Government and the community.

Kamwanje explained that government should be blamed for delaying in formalizing the ASMs and dealing with illegal miners as well as lack of regular monitoring, inspections, sensitization, capacity building, and health and safety awareness in ASM sites. He said: “The miners are to blame as well. Safety was compromised.”  

“The MMRA should have enough funding for inspectors to be on the ground to sensitize these miners on the dangers of illegal mining.”

“ASM mining hotspots should be designated formal areas, well mapped and monitored by the government. This will offset other undesignated areas as no go zones.”

Kamwanje concurred with Manda in slamming the ban saying government needs to encourage illegal miners to form cooperatives through all formal licencing processes.

“The government banning ASM activities is not a solution. The government has a prerogative to preach to ASMs the benefits of responsible/ sustainable mining, health and safety and other regulations. The government should engage the illegal ASMs to get licenced.” said Kamwanje.

Programs/MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ishmael said it is difficult for the government to stop gold mining activities as they are many doing it with the intention of earning a living. Ishmael said the major challenge is that the communities involved in the mining activities are much connected to government structures.   He said: “The continued market for gold just like charcoal in Malawi makes the situation more difficult to contain.”

“Lack of consistency in doing things in the governance structures brings doubt as to whether those monitoring can be sustained.”

“The tendency of some government officials of grabbing tenements from locals in these hotspots to grant to influential individuals from elsewhere forces the locals to continue searching for other gold-rich spots.”

The deceased in the Kasungu accident were identified as Mphatso Banda, Sindama Mnyanja, Lydia Mpando, Labani Kawongo, Idah Chikondi, Tiyamike Phiri, Galeson Mpanganachi Chibwezi, Kamputeni Harrison Banda, and Grace Chisale.

Kasungu Police Public Relations Officer Joseph Kachikho expressed concern that rescue efforts were complicated by the lack of proper equipment and the unstable nature of the site.

Sub-Traditional Authority Suza said there is need to introduce regulations to govern mining activities in the area to ensure safe practices stressing that “We cannot keep losing lives like this."

Chairperson of Kasungu Civil Society Organisation Network Braxton Banda urged the authorities to treat the situation with the urgency it deserves.

"We are calling on stakeholders to ensure that both the environment and the lives of people are protected. We also urge the Ministry of Mining to intervene by providing appropriate machinery and safety gear to make mining safer for the communities who depend on it,” Banda said.

Another mine accident involving ASMs recently occurred in Balaka District where it killed one miner and left others with minor injuries.