Mining & Trade News

The prevailing shortage of fuel mainly petrol and diesel is having its toll on the minerals sector resulting in suspension of projects with local cement producers among those surviving on a thread owing to the energy crisis.

A snap survey conducted by Mining & Trade Review has revealed that some contractors are failing to fulfill their assignments due to the fuel shortages resulting in failure to meet the deadlines for the assignments.

MD for Lilongwe based provider of geotechnical services Geoconsult Michael Sabelli told Mining & Trade Review that the shortage of fuel has heavily impacted on the company’s operations.

Sabealli said: “At Geoconsult we have got Dyke investigations in Chikwawa as part of the flood prevention programs that are being held up. We struggle to find diesel, delaying our report submissions for the works. To make the matters worse we have applied for MERA (Malawi Energy Regulatory Authority) authorization twice in the last 12 months to fill our drill rig on site, both times they have not provided the letter, implying we have to demobilize and bring the rig to the station.

“The current project will likely be delayed by a month as a result, which means the chances of getting the dykes to working conditions before the next rains will be slim.”

Chairman of Cement Products Limited (CPL) Aslam Gaffar said his Company has been forced to stop cement production at its factory in Njeleza, Mangochi due to shortage of diesel since the Company uses back up diesel generators to run its plant.

“We have stopped our Kiln due to lack of fuel resulting in no limestone mining. As we speak the Clinker plant is not operational,” he said.

MD for another cement producing firm Jitendra Patel said the energy crisis has not only impacted on day to day production but also the company’s ongoing factory expansion works.

“We are totally down. We do not know how to plan a mega industry in such a situation. Each day, we feel we would rather shut down temporarily as nothing planned is working,” said Patel.

Minister of Energy and Mining Dr. Jean Mathanga acknowledged the frustration and inconvenience being experienced by Malawians due to the fuel shortages and recurring power outages at a Press Conference in Blantyre.

She, however, assured the public that the situation is expected to normalize as fuel imports are underway to restore steady supply across the country.

Responding to concerns regarding the Government’s shift from the Government-to-Government (G-to-G) fuel procurement arrangement to the Open Tender System, the Minister explained that the previous system depended heavily on economies of scale, where large volumes of fuel were sourced from a single supplier, which created vulnerabilities whenever the supplier failed to deliver.

“In contrast, the Open Tender System offers diversification of supply sources. This means that even when some suppliers are unable to deliver for various reasons, the country can still access fuel from other available suppliers,” she said.

The Mining and Minerals Regulatory Authority (MMRA) has trashed assertions from a civil society organization, the Centre for Democracy and Economic Development Initiative (CBEDI) that there is lack of transparency on mining agreements that the Malawi Government has signed with various mining companies.

anies. In his response to a letter from CDEDI Executive Director Silvester Namiwa, MMRA Director General Mphatso Chikoti states that under the Mines and Minerals Act (2023), the Minister may (but is not obliged to) enter into a general conditions’ agreement covering the terms for the grant of a medium or large-scale mining licence

“Under the Act, the Government has the right to acquire a free equity ownership interest in any mining project subject to the grant of a large-scale mining licence only,” he says.

He says to date three Mining Devel- opment Agreements (MDAs) that in- clude government equity clauses have so far been concluded.

The agreements are for the Kayelek- era Uranium Project in Karonga by Lotus Africa Limited, the Kanyika Niobium Project in Mzimba by Globe Metals and Mining (Africa) Limited, and the Songwe Hill Rare Earth Proj- ect in Phalombe by Lancaster Exploration Limited which are publicly accessible through the MMRA website and the Ministry of Energy and Mining.

The Authority also reports that Malawi has issued multiple categories of mineral licenses, including exploration, reconnaissance, retention, and large- scale mining licenses

Updated information on active licenses, including mineral types and locations, has been made available through the MMRA website and the national cadastral portal.

On the much anticipated Kasiya Rutile-Graphite Project by Sovereign Services, MMRA clarifies that the project remains at the exploration stage, with no mining license applied or granted.

The company currently holds several exploration and retention licenses across Dowa, Lilongwe, Kasungu, and Mchinji. Chikoti states that government equity participation in these projects will only apply once a large- scale mining license application is submitted.

On gold trade, MMRA reveals significant growth in purchases by the Export Development Fund (EDF), the only active legal b

uyer under Re- served Mineral License.

In 2024, EDF purchased 131, 283.70 grams of smelted gold valued at over K22.8 billion. Purchases were sourced from suppliers across multi- ple districts including Mchinji, Machinga, Kasungu, Mzimba, Nkhotakota among others. The unit price per gram ranged from MK 109, 000 to MK 235, 000 over the course of the year.

As of 2025, purchases rose sharply to 245,106.52 grams worth more than MK 93.5 billion. The increase represents an 87 percent rise in volume and over 309 percent in expenditure, driven by higher gold prices and expanded sourcing across districts including Mchinji, Maching, Kasungu, Nkhotakota and Mzimba.

Meanwhile, the Malawi Mining Investment Company (MAMICO), though licensed, has not yet started gold mining operations due to funding constraints.

Civil Society Organisations (CSOs) operating in the mineral sector have asked Members of Parliament (MPs) to implement measures to ensure decentralization of the sector

The CSOs engaged the parliamentary committee on Natural Resources and Climate Change (NRCC) on good governance in the sector.

Vice Chairperson for Evangelical Association of Malawi (EAM) Rev. Davidson Chifungo said the engagement with the committee was held understanding that the majority of the committee members are either newly elected members or those relocated from other committees.

Chifungo said the Committee plays an oversight role in the sector which should help to ensure that there is localization, accountability and justice in Malawi’s mining and energy sectors.

He said: “We wanted the committee to fully understand what localization is, as it means bringing control, decision making and benefits closer to local communities.

“They also have to understand that localization involves participation of local governments, traditional leaders, and citizens, as well as promoting ownership, inclusion, and fair benefit sharing.”

Chifungo stressed the need for decentralization saying it strengthens accountability and transparency within the sector.

He said decentralization improves service delivery and local oversight; creates opportunities for community empowerment, and encourages ethical management of resources.

Chifungo said: “Currently we have challenges in our mineral sector including; centralized control often limiting local benefits; mining and energy wealth not equitably distributed; weak local capacity and limited transparency and; environmental and social impacts on local communities.”

“As a faith-based organization, we believe parliament is the guardian of Malawi’s mineral wealth which should help to ensure laws are followed, revenues are transparent, communities are benefiting and the environment is protected.”

MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ishmael concurred with Chifungo on the major oversight role played by parliament in asserting the system of checks and balances on the executive branch of government and as the defender of citizens’ interests

Ishmael equipped the committee on Political Economy Analysis (PEA) of the mining sector for them to understand how power, incentives, and institutions shape the governance and economic outcomes of mining.

He said PEA goes beyond technical feasibility to analyse how government, companies, and local communities interact to distribute the costs and benefits of extraction.

Ishmael said: “The PEA of the mining sector is currently facing governance and institutional vulnerabilities including incentive problems whereby institutions governing mining often face conflicts of interest, and the lack of accountability or weak institutional capacity can lead to poor policy implementation.”

“PEA has also vulnerability whereby international mining companies often hold significant political power and influence over governments, particularly when governments are eager for investment.”

“Despite bearing the brunt of negative environmental and social impacts, local communities frequently have minimal, non-transparent roles in decision-making and limited access to information regarding mining policies.”

Committee Chairperson Tiaone Hendry hailed the meeting saying some of the issues brought before them were new to the members.

Hendry assured the CSOs to engage the Ministry of Energy and Mining and also consider visiting some mining sites as part of their oversight role to bring sanity in the sector.

“They have shared with us some of the information that is new to us and we have asked them to write to us formally because as a committee we will act based on formal letters.”

“We have to do checks and balances based on the formal communication. We plan to visit illegal mining sites and other mining companies to appreciate the situation and also want to take into account the Ministry of Energy and Mining so that they scale up security for our minerals.”

“Some of the issues that they have discussed with us are to do with registration and vulnerability especially on how the local communities are not benefiting from the mining sector.”

Hendry urged the CSOs to continue engaging the committee saying it is unfortunate that most of the information on the country’s mineral sector comes from foreign investors.

Governing Malawi’s Critical Minerals: Policy Pathways for a Just Energy Transition 

A Defining Moment for Malawi’s Mining Sector

The global transition toward renewable energy is reshaping demand for mineral resources in unprecedented ways. Critical minerals such as lithium,

graphite, rare earth elements, and niobium are now central to the production of electric vehicles, wind turbines, and solar panels. For Malawi, this transformation represents more than a market opportunity. As articulated in my previous two series, it is a defining moment that could reposition the country within global energy and industrial systems, and subsequently economic development in the long run.

Yet, history offers a cautionary tale. Resource-rich countries have often experienced extractive booms that generate wealth without development, leaving behind environmental degradation and socially fragmented communities. As Malawi’s mineral sector expands, the central question is no longer whether the country will participate in the energy transition, but whether it will do so on terms that are equitable, sustainable, and nationally beneficial.

An Emerging Critical Minerals Hub

Malawi is increasingly establishing itself as a significant player in the global supply of energy transition minerals. Projects such as the Kasiya rutile-graphite development (one of the largest of its kind globally) highlight the country’s strategic importance in supplying materials essential for battery technologies and solar applications. Similarly, rare earth projects at Kangankunde and Songwe Hill are expected to contribute key inputs for electric mobility and renewable energy systems, particularly in the production of permanent magnets used in wind turbines and electric vehicles. These two rare earth projects stand out as alternatives to the China’s dominance. Taking advantage of this to transform our economy is paramount if the resources are well managed. The question that I address in this third series is: Can Malawi move towards a critical minerals resources governance that positions the interests on its populace and economic development first? How does such a governance framework look like? It is a policy and its implementation that is a game charger for economic development. In this series I present a few alternatives to a meaningful mineral resource governance framework.

Why Policy—Not Just Minerals—Will Shape Economic Outcomes

While the scale of Malawi’s mineral endowment is significant, minerals alone do not guarantee development. The determining factor will be the strength and direction of mineral resources policy and most importantly, implementation. Without deliberate and forward-looking governance, Malawi risks reproducing familiar patterns of extractivism. The historical imperialists patterns of exporting raw materials with limited domestic value addition, experiencing environmental degradation, and marginalizing local communities from decision-making processes

Conversely, effective policy can transform mineral wealth into a foundation for inclusive growth, industrial development, and environmental sustainability. The challenge, therefore, lies not in resource availability, but in the ability of institutions to govern these resources in ways that align national development priorities besides the global energy demands narratives.

Policy Contribution Pathways to a “Just” Energy Transition

For Malawi’s critical mineral wealth to contribute to the much-anticipated energy transition while prioritizing justice and equality of all humans, there is need for a deliberate reconfiguration of mineral governance, anchored in five key policy directions.

First, Malawi must move beyond raw mineral exports by prioritizing value addition and beneficiation in-country. With this point in mind, it should be acknowledged that mineral processing is an energy intensive venture. Therefore, availability of stable energy is key to this vision. But still processing minerals domestically, even if not at market-ready products but few steps in the value chain can never be overemphasized. It creates jobs, substantial revenue beyond mineral royalties and uplifts industrial development locally. This approach also positions Malawi more competitively within global value chains that increasingly favour processed and semiprocessed materials

Second, mineral-host community participation must be institutionalized as a core component of mineral governance. Mining-affected communities should not be treated as passive stakeholders but as active participants in decision-making processes. This includes establishing clear benefit-sharing mechanisms, strengthening local consultation frameworks, Free, Prior, and Informed Consent (FPIC) and ensuring that land-related rights are respected and protected. Inclusive governance is essential not only for social justice but also for maintaining the legitimacy and longterm viability of mining operations through social license to operate for exploration and mining companies.

Third, environmental governance must be strengthened to ensure that sustainability is more than a rhetorical commitment. Robust Environmental Impact Assessment (EIA) processes, enforceable rehabilitation requirements, and the introduction of mine closure bonds are critical for mitigating long-term ecological damage. At the same time, Malawi should explore circular economy approaches, including the reuse of mine waste and tailings, to minimize environmental footprints while creating additional economic value. The time for setting these out in our governance framework is now.

Fourth, Malawi needs a comprehensive national critical minerals strategy. Such a strategy should identify priority minerals, define clear investment pathways, and align mining policy with broader energy and industrial development goals. By doing so, Malawi can position itself as a reliable and responsible supplier in an increasingly competitive global market for critical minerals.

Finally, transparency and accountability must be strengthened across the mining sector. This includes improving contract negotiation capacity, ensuring open access to mining agreements, and aligning with international transparency standards such as the Extractive Industries Transparency Initiative (EITI). Strong governance institutions are essential for preventing revenue leakages and ensuring that mineral wealth translates into tangible development outcomes.

A Model Beyond Malawi

The policy choices Malawi makes today will have implications beyond its borders. Across Africa and the Global South, countries are grappling with the challenge of supplying critical minerals for global decarbonization while avoiding the socio-environmental costs traditionally associated with extractive industries.

If Malawi succeeds in aligning mineral development with principles of justice, sustainability, and inclusive governance, it could provide a compelling model for how resource-rich countries can participate in the energy transition without compromising local livelihoods or environmental integrity. In this sense, Malawi’s experience could contribute to a broader rethinking of how mineral resources are governed in the context of global climate action.

Conclusion: Defining the Terms of Transition

The energy transition is often framed as a technological shift, but it is equally a governance challenge. For Malawi, the opportunity lies not only in supplying the minerals that power renewable technologies, but in shaping the conditions under which those minerals are extracted, processed, and distributed. A just and sustainable future will depend on policies that place communities at the center, protect the environment, and ensure that mineral wealth contributes meaningfully to national development. If these conditions are met, Malawi can move beyond being a resource supplier to becoming a leader in responsible mineral governance in the era of global energy transition. We have the opportunity; the choice is ours.

Hungry hyenas feasting on Kangankunde mine

I was one of the journalists invited to Kangankunde in Balaka to cover the launch of Project Early Learning which Lindian Resources is implementing to support Kangankunde Primary School.

Minister of Education Bright Msaka officially launched the project, through which Lindian is constructing new infrastructure at the school including school blocks and a netball court, and also giving learners learning materials such as books and pens.

I left my base in Lilongwe early in the morning on that day to arrive in time for the event that was scheduled to start at 9.00am at the primary school

I never went wrong regarding punctuality as I was assisted by the good access road from M1 to Kangankunde that Lindian has constructed to gravel standards to ease access to the mine.

When I arrived at the event, I was surprised to meet my Uncle, Mr Mathias Chimwala, in the company of a fellow old man. Mr Chimwala is the only one alive among my late father’s siblings and stays in our home village Chimtendere in Traditional Authority Nsamala’s area near khwisa Trading Centre in the northern side of Balaka, a bit far from Kangankunde. “Oh dad, what brings you here?” I reached out to him as traditionally we refer to a father’s brother as another Dad.

He explained that he had come from Khwisa to visit the old man in his company Mr Mwatitola, who is one of his brothers in-law and long-time friend.

“Several years have elapsed since I paid him a visit. He asked me to escort him to attend this event. I am just surprised that this area has changed now. Villages here used to be surrounded by thick bushes with Malawi’s renowned hungry hyenas of Ntcheu and Balaka on the prey feasting on people’s livestock.”

Before I could respond to ask Mr Mwatitola if they had managed to overcome the threat of the hungry hyenas, he chipped in: “There are now hungry hyenas feasting on Kangankunde Mineral Deposit Mr Chimwala. I will tell you about these hyenas.”

No community development agreement

He then started explaining about the project. Mr Mwatitola enlightened us that unlike other big mining projects in Malawi, there is no Mining Development Agreement (MDA) nor Community Development Agreement (CDA) on Kangankunde. This is because only companies that hold a large-scale mining licence are mandated to sign MDA with Government and CDA with the community. Strange enough, Lindian is still operating using a medium scale mining licence to run Kangankunde, one of the largest and most significant rare earth deposits in the world

“Why is the company not acquiring a large-scale mining licence then with such a huge and high value deposit understanding rare earths are one of the critical minerals in high demand on the world market?” I posed the question to Mr. Mwatitola.

He told us that Lindian wants to start with very low production that does not deserve a large-scale mining licence and scale up and obtain a large-scale mining licence later

I posed a question to him: “So if Lindian wants to make money out of Kangankunde to raise money to expand to large scale mining, what is failing the Malawi Government from revoking its licence to give it to a capable investor to develop large scale mining with all its benefits? Do you know that there are huge investors out there, some with the backing of rich governments such as USA, looking for rare earth deposits of that size and quality?”

Very cool and calm, Mr Mwatitola responded to me: “My son, this is the work of the hyenas I talked about. They are some hyenas in government feasting on Kangankunde based on such peculiar arrangements.”

“If Kangankunde was being managed in a sound way, we would certainly have had a large-scale mining company pursuing the deposit. This company would have signed MDA and CDA with us, according to the Mines and Minerals Act (2023). Through the CDA, we would be able to propose the development projects that we want here as natives of Kangankunde other than waiting for someone in luxury at Lindian’s head office in Perth, Australia to decide what to voluntarily do for the people of Kangankunde. We are certainly being taken for a ride by these hyenas.”

Processing of monazite to be conducted in Kazakhstan and Australia

I was mesmerized with the knowledge and reasoning of Mr Mwatitola on mining issues and I asked him how he manages to follow these issues

He told me that he follows the issue of Kangankunde mine from Traditional Leaders who are invited to Council meetings. Mr Mwatitola also reminded us about his experiences working in mines in “Salisbury” now Zimbabwe.

He continued his talk: “My son, it is clear that we, the people of Kangankunde, and the Malawi Nation will not adequately benefit from Kangankunde due to the work of these hyenas.

“Kangankunde is a lost opportunity for Malawi looking at the size and global significance of the deposit with Lindian having signed a binding agreement with an Australina firm Iluka Resources including an offtake loan to develop the mine and buying a refinery in Kazakhstan to process the monazite. It pained me as an old man to see pictures in online news articles of US and Australian officials and also US and Kazakhstan government officials holding hands celebrating bilateral coordination over rare earths including those of Kangankunde. Foreign nations are celebrating cooperation over rare earth from Kangankunde while I lack a kwacha to buy bonya (very small fish). Cry for my beloved Kangankunde! Cry for my beloved Malawi!”

It was becoming vivid that the old man was getting emotional when he later complained about lack of jobs for the youths in Balaka and Malawi as a nation while Kangankunde is exporting jobs through these arrangements of sending monazite concentrate to process in foreign countries.

The old man explained that through such arrangements. Malawi is also losing the chance to bring the rare earth processing technology home.

“I hear that in Salisbury, President Munangagwa banned exports of both processed and semi-processed critical minerals such as this concentrate. Chinese companies are, therefore, opening lithium processing plants there, employing more locals,” Mr Mwatitola gave an example of Zimbabwe.

I reminded him about the Executive Order issued by State President Arthur Peter Mutharika banning exportation of raw minerals asking why it is not working on Kangankunde

He responded to me by explaining that Lindian officials indicated that the ban excludes Kangankunde because it is only a ban on unprocessed minerals. Kangankunde will not export run of mine material. It will develop the material into concentrates.

Then my Uncle laughed and said: “You know, some of these announcements by politicians mainly serve political interests. You can see the ban boosted the popularity for the President but is mainly impacting poor artisanal and small-scale miners with investors avoiding it.”

Government officials pocketing allowances

As Mr Chimwala was talking, the Minister started the hand over of books to selected learners at the primary school as part of the ceremony.

This prompted me to speak in praise of the Lindian for the project but Mr Mwatitola responded; “My son, while this project is indeed important, we still want the mining project to upgrade to large-scale and sign a CDA and MDA. While the CDA will enable us to choose the projects that we want, the MDA will increase transparency in the project as it states what benefits are there for the Malawi Nation and the mining company.”

“This medium scale mining licence is keeping us in the dark on the benefits in so doing giving an opportunity to the hungry hyenas to continue feasting on our resource.”

As we continued discussing these issues on the sidelines of the event, we noticed queues of locals including women with babies strapped on their backs queueing to receive a packet each of biscuits and juice in 240ml bottles that Lindian bought as lunch for the locals.

At the same time, government officials were seen entering one of the modern classrooms constructed by Lindian to receive brown envelopes which we knew contained funds for transport expenses’ reimbursements and allowances.

Mr Mwatritola continued his talk: “Look here, these government officials are pocketing allowances while locals like me are supposed to scramble for small packets of biscuits and juice. These government officials and politicians are the hyenas I talked about feasting on Kangankunde on our watch.”

“Members of Parliament from the last cohort of the Parliamentary Committee on Natural Resources also came to tour Kangankunde and demanded hefty allowances from Lindian which were paid immediately.”

“Besides that, Lindian is one of the companies that has been sponsoring government officials to attend international mining conferences in different countries. These officials shamelessly ask for sponsorship from Lindian without any worry of compromising their roles. Do you think these officials can make any decision to Lindian’s disadvantage though for the good of the nation?”

“Hungry hyenas are feasting on Kangankunde while we, the locals here, and many Malawians continue to live in abject poverty.”

As Msaka bade farewell to the gathering at the event, I invited the two old men to join me in enjoying Kachaso, a locally brewed gin, in Kangankunde Village. It was not the talk of the Minister encouraging locals to support Lindian in developing Kangankunde Mining Project but the old man’s talk of hyenas feasting on Kangankunde that stuck in my mind

Government’s deployment of Malawi Defence Force soldiers in small-scale mining areas in order to bring sanity in the activity has sparked debate with civil society organisations expressing concern over potential human rights violations while the miners are pleading for dialogue with the authorities. Eye witnesses have confirmed incidents where by soldiers have destroyed build- ings and detained artisanal and small-scale miners (ASMs) suspected of unlawful practices in mining hotspots in districts such as Mzimba and Kasungu.

The Ministry of Energy and Mining states in a Press Release that the Malawi Government has established a joint task force operation codenamed “Operation Samala Mgodi” which is aimed at strengthening enforcement mechanisms, curbing illegal mining, and preventing the smuggling of unprocessed stones across the country’s boarders.

The Press Release signed by Principal Secretary Emmanuel Matapa says this op- eration is meant to address the growing challenge of illegal mining in line with the Executive Order issued by the State Pres- ident Arthur Peter Mutharika, which pro- hibits the export of all raw and unprocessed minerals

The operation is being led by MDF with support from the Malawi Police Service, Immigration Department, National Intelli- gence Service, Malawi Prison Service and the Department of Mining in the Ministry

“To empower communities in the tar- geted mining sites, the Government is es- tablishing registered mining cooperatives to formalize ASMs. These cooperatives will provide a lawful channel for mining operations and enable the Government to purchase minerals for value addition, im- proved traceability, and enhanced revenue collection ensuring the sector contributes meaningfully to national development,” says Matapa.

ative to curb illegal mining, Natural Re- sources Justice Network National Coordinator Kennedy Rashid Rashid in an interview suggests police officers, trained for law enforcement and judicial processes are more suitable for the operation than the military.

“It is likely that the involvement of sol- diers is associated with human rights vio- lations because the soldiers are not specifically trained for that role, which is of the MPS officers,” he says.

f the MPS officers,” he says. Landirani Banda, a victim, complains to Mining & Trade Review over the loss of K800,000 and personal belongings, in- cluding food and solar panels seized dur- ing the operation.

Federation of Artisanal and Small-Scale Miners in Malawi (FASMIM) President Percy Maleta bemoans the launch of the MDF headed operation saying Govern- ment needs to use contact and dialogue to bring sanity to the industry.

“Arresting artisanal miners contradicts the government's efforts to form ASM co- operatives."

He wonders why Government is arrest- ing ASMs without licences when it sus- pended issuing of mining licences pending an audit of the cadastral portal.

"There is no licence for ASMs in the country, so who is an illegal miner?" Maleta questions.

In a Press Statement, Maleta says sim- ply militarizing the fight against illegal mining risks pushing miners further into the shadows. Instead the federation is advocating for a strategy that focuses on formalizing the sector and empowering min- ers with access to licenses, finances and fair markets.

He says Government needs to deal with the root causes of illegal mining instead of using militarization observing that illegal mining and smuggling are symptoms of deeper structural challenges, including limited access to licensing, lack of financ- ing, and inadequate market systems

The federation has since called for dia- logue between the government and ASMs in order to create inclusive platforms where all par- ties can sit at the table, engage construc- tively, and agree on practical and mutually beneficial solutions

“Restricting miners and traders from ac- cessing export markets and earning a livelihood without providing viable and accessible alternatives, risks pushing them further into illegality,” states Maleta.

The ASM sector is crucial to Malawi's economy, employing an estimated 40,000 and contributing to the country's Gross Domestic Product (GDP) though it is dogged by a myriad of challenges includ- ing informal practices, poor health standards, and environmental concerns.

But Matapa maintains that Operation "Samala Mgodi" has clear objectives which include: combat illegal mining ac- tivities to identify, monitor and dismantle illegal mining operations across the coun- try; protect the environment to prevent the degradation and pollution of rivers, land and other natural resources, resulting from unlawful mining practices; and to enforce environmental regulations to ensure strict compliance with environmental laws in- cluding the safe and regulated use of mer- cury and other hazardous substances in mining activities.

The other objectives include to safeguard national revenue to curb revenue losses by addressing unlicensed mining and the illegal export of raw and unprocessed minerals; promote local employment opportunities to encourage formalization and regulated mining activities that generate decent jobs and sustainable economic benefits for Malawian communities; and protect children from exploitation to eliminate child labour in mining and uphold the safety, rights and well-being of children.,

He says these objectives reflect the government's commitment to responsible mining that benefits Malawian communities while preserving the environment.

Long lasting solution required to deal will illegal mining

The problem of illegal mining and smuggling of precious minerals has been rampant for many years in Malawi with the Government continuously failing to deal with it.

Small-scale Artisanal and Small-scale Mining (ASMs) hotspots such as Makanjira in Mangochi and Kasungu have existed for over a decade with the Government employing different measures to stop the miners but to no avail.

The solutions that have been used by Government to deal with illegal mining but failed include use of force through deployment of Malawi Defence Force (MDF) soldiers and the Police Mobile Force unit of the Malawi Police Service.

We, therefore, received the news that Government has once again deployed MDF and Police officers to deal with unarmed informal ASMs as a surprise. We agree with Natural Resources Justice Network National Coordinator Kennedy Rashid who is quoted in our article on Page 16 that the involvement of soldiers in the exercise is being associated with potential human rights abuses because they are not trained for law enforcement and judicial processes unlike Police officers.

Experience with this option of using force to stop illegal ASM mining before has shown that these miners run away from mines at the sight of the police and soldiers but always return to their work places when officers leave the sites.

This clearly proves that use of force is not the solution to address illegal ASM mining in Malawi but as President of the Federation of Artisanal and Small-Scale Miners in Malawi Percy Maleta says in our article, Malawi needs a lasting solution to this problem that will ensure that the miners are able to continue with their work responsibly while government collects royalties and taxes from the trade.

As Maleta says, Government needs to engage the miners, give them the required licences, and form cooperatives to easily sensitise them on sustainable and responsible mining practices that do not harm the environment. Arresting artisanal miners certainly contradicts the government's efforts to formalize illegal ASM mining through formation of cooperatives.

Malawi has been losing revenue from unregulated small-scale mining of gold and other precious minerals for a long time. Government needs to engage the miners to embark on these long lasting initiatives that will protect these precious minerals, lives that are being lost through accidents due to unsafe mining practices, and the environment.

Bans on issuing of licences to ASMs and exportation of raw minerals when Malawi lacks facilities to process minerals mined by the ASMs are a nonstarter.

Globe Metals & Mining has announced the results of the Bankable Feasibility Study (BFS) for the Kanyika Niobium Project, which confirms Kanyika as a globally significant, long-life niobium project with compelling economics.

This BFS updates and builds on the feasibility study released in 2021 and is supported by a full technical report. Charles Altshuler, Interim CEO & CFO of Globe Metals & Mining, said: “The BFS confirms Kanyika as a globally significant, long-life niobium project with compelling economics, low operating costs and a clear, staged development pathway. With a post-tax Net Present Value (NPV) of over US$1 billion, a 48% Internal Rate of Return (IRR) and average net operating costs of approximately US$14.26/kg Nb?O?, the Project demonstrates robust economics supplying critical minerals into a marketplace calling for increased supply and diversity. Our phased development approach improves capital efficiency and reduces execution risk.”

“Importantly, Kanyika represents one of the few nearterm opportunities to establish a new, large scale source of niobium supply outside Brazil. As demand continues to grow across aerospace, defence, data centres, AI and advanced manufacturing, we are seeing increasing strategic interest in securing long-term, conflict-free supply.”

“Our focus is now firmly on execution, progressing funding, offtake and Engineering Procurement and Construction Management (EPCM) arrangements toward a Final Investment Decision, while advancing early works and procurement to enable construction. We believe the Project is well positioned to transition into development and deliver long-term value for shareholders.

Key Highlights

Financial and operating metrics (on a 100% basis and are stated in real 1 January 2026 terms):

• Post-Tax Net Present Value (NPV)8 (real) of US$1,025M (A$1,464M) • Post-Tax Internal Rate of Return (IRR) of 48% • Average annual Earnings Before Interest,Taxes, Depreciation and Amortisation (EBITDA) of US$205M (A$293M)

• Pre-tax NPV8 (real) of US$1,524M (A$2,177M) • Life of Mine (LOM): 24 years with first production of niobium oxide expected early 2028

• Large scale project generating net sales revenue over LOM of US$6,983M (A$9,975M) • Gross margin over LOM of US$5,057M (A$7,225M) equating to a 72% gross margin

• Average annual net operating cost (after tantalum by product credit) of US$14.26/kg Nb?O? - in the lowest cost quartile due to the low strip ratio, 80% Nb?O? recoveries in the concentrator and use of solar power and battery storage (BESS)

• Initial phase capital cost of US$139M (A$199M), comprising capex for the mine and refinery of US$82M, Solar PV and BESS of US$28M, EPCM & Owner’s cost of US$15M and contingency of US$14M]

Resources and reserves:

• Ore Reserve (BFS): 33.8 Mt at 3,050 ppm Nb?O? and 142 ppm Ta?O?, supports a mine life of 24 years

• 2018 Mineral Resource Estimate (MRE) 2 (JORC Code guidelines (2012) compliant): 68.3 million tonnes of mineralisation with a grade of 2,830 ppm Nb?O? and 135 ppm Ta?O?

Project development strategy:

Phased development to reduce upfront capital and execution risk:

• Initial phase: targeted production ~1,502 tpa of Nb?O? (plus ~65 tpa Ta?O?) -Equivalent to ~500kt of ore mined and processed run of mine (ROM) capacity per annum ~33% of full run of mine (ROM) capacity

• Expansion to full scale: targeted production ~3,477 tpa Nb?O? (plus ~ 156 tpa Ta?O?), subject to market conditions -Equivalent to ~1,500kt of ore mined and processed full run of mine (ROM) capacity per annum ~100% of full run of mine (ROM) capacity

Strategic and technical strengths:

• A potential globally significant primary niobium and tantalum oxide producer, targeting critical minerals markets across AI, aerospace, defence, superconductors, and advanced manufacturing.

• Fully integrated, on-site mine-to-refinery configuration producing high-purity niobium and tantalum oxide products

. • Provides a conflict-free, traceable and diversified supply source outside Brazil.

• Completed technical programme including extensive metallurgical testwork and engineering optimisation underpinning a robust and optimised processing flowsheet, top-quartile recoveries, materially de-risking execution

Targeted next steps and timetable:

• Calendar Q2 2026: Continue project evaluation and advance funding, offtake and EPCM negotiations. Complete the remaining BFS finalisation tasks and progress early development works. Complete technical and commercial framework required for development.

• Q3 2026: Target Final Investment Decision (FID); execute initial funding and EPCM contracts; commence long-lead procurement, commence relocation of affected households in the initial phase.

• Q4 2026: Mobilise contractors and site teams and commence initial phase site works (site establishment, access roads, camp construction, water supply and temporary power).

• Q1 2027 to Q3 2027: Major construction activities (civil works, structural steel erection, plant installation, tailings storage facility, power infrastructure); pre-strip and initial ore exposure.

• Q4 2027: Mechanical completion of major circuits; commissioning preparations.

• Q1 2028: First production and initial revenues; target positive operating cash flow as initial phase reaches steady state.

• Q2 2028 – 2030: Expansion phase construction to reach full capacity; full-scale operations expected in early 2030 (depending on market conditions)

• Mine life through to 2052, with progressive closure and rehabilitation starting from 2049.