Mining & Trade News

ASX-listed Globe Metals & Mining has announced the promotion of Ms Lisungu Chirwa to Managing Director of its wholly owned local subsidiary Globe Metals & Mining Africa, which operates the Kanyika Niobium Mining Project in Mzimba.

Globe says in a Press Statement that this decision underscores its commitment to local leadership and enhancing in-country capabilities.

In her role as Finance Director of the Malawian entity, Chirwa played a crucial part in negotiating the Mining Development Agreement (MDA) with the Government of Malawi and led the community engagement process for the signing of the Community Development Agreement (CDA).

The firm states that these achievements reflect her strong leadership and stakeholder engagement skills.

Chirwa also serves on the Board of Directors and acts as the Company Secretary of Globe Metals & Mining Africa Limited, demonstrating the trust placed in her by both the Company and its stakeholders.

Globe says in the statement that her promotion marks a significant milestone in Globe’s development journey and highlights the company’s ongoing strategy to empower local leaders and strengthen its operational roots in Malawi.

Globe’s Interim Chief Executive Officer, Charles Altshuler, comments: “Lisungu’s promotion to Managing Director is both well-deserved and strategically vital. She has been a cornerstone of Globe’s operations in Malawi for over 15 years, demonstrating exceptional leadership, integrity, and profound local insight.”

“Her contributions to shaping our agreements with government and communities has been critical to the success of the Kanyika Project. I am confident she will continue to lead with distinction as we enter into our next phase of development. This appointment reinforces our commitment to fostering strong in-country leadership and ensuring Globe’s future is guided by those who understand the local context best.”

As part of its ongoing non-binding discussions on the Kanyika Niobium Project with strategic partners including potential off-takers, funders, and mining, engineering, and construction firms; Globe Metals has decided to implement the Early Contractor Involvement (ECI) approach, which promotes early collaboration with these strategic partners.

Consequently, the Company will delay the release of the Bankable Feasibility Study (BFS) to ensure that the final design and budget include improvements identified from the ECI and is aligned with current market conditions.

  Globe’s Interim Chief Executive Officer, Charles Altshuler, comments: “We continue to believe strongly in the fundamentals of the Kanyika Project. Recent shifts in market dynamics present a valuable opportunity to enhance the project's commercial viability and long-term strategic importance. Adopting the ECI approach and taking the time now to reflect these market developments in the BFS are essential for improving project outcomes and mitigating project risks. We believe these strategic initiatives will facilitate the progression of discussions around short-term funding, while we finalise non-binding agreements and secure the remaining capital needed for full project development.”

Altshuler explains that the ECI approach embodied industry’s best practice for developing vertically integrated projects and positions the Company well for the upcoming phase of financing. He says the decision to extend the BFS timeline was guided by a combination of internal and external factors, including:

Project scope, construction methodology, and technical optimization.

Project scope, construction methodology, and technical optimisation In collaborating with leading contractors and engineering firms with proven success in delivering mining and processing projects across Africa, Globe says it is implementing an ECI approach which allows the firm to refine the project’s scope, layout, and construction strategy based on expert insights before finalising the BFS. He explains that their expertise ensures the design in the BFS is not only technically solid but also constructible, schedule-aligned, and suited to regional logistical, labour, and climatic realities.

“This collaborative approach also allows Globe to address potential bottlenecks and risk factors early, and the opportunities to reduce capital intensity and implementation timelines, resulting in a BFS which is ready for execution and financing.”

Economic and procurement optimisation

The Company is currently refining the BFS to enhance economic efficiency and maximize long-term project value. This process involves optimising plant design, infrastructure layout, and process engineering to reduce operational costs related to power consumption, reagent usage, and equipment selection. It continued explaining that in parallel, by engaging with key suppliers early to secure better pricing and improve supply chain visibility, the Company could enjoy competitive tendering and bulk purchasing advantages.

Market alignment

Globe says in light of recent global developments affecting the niobium and tantalum markets, the company it is reassessing its production scale, ramp-up strategy, and pricing assumptions in the BFS.

It states: “Geopolitical instability in key producing regions, such as the Democratic Republic of the Congo (DRC) and Rwanda, has increased demand for ethical, non-conflict and traceable sourcing particularly from Malawi.”

“Through discussions with potential off-takers, the Company is seeing accelerating demand from defense, aerospace, electronics, battery and superalloy sectors.”

“There is a growing global trend among buyers to diversify their sourcing of critical metals away from politically unstable regions and single-source supply chains.”

“The Company is committed to aligning the BFS with these market dynamics to ensure a commercially viable and sustainable project.”

Impact and Timing

As part of this process, Globe states that it has initiated non-binding discussions and negotiations with several mining, engineering, and construction firms. It says these discussions aim to:

• Refine the project scope and   construction methodology

• Optimise infrastructure sequencing and    production ramp-up

• Validate key operating assumptions

• Improve accuracy in capital and   operational cost estimates in   preparation for a formal EPC tender   process. The Company explained that the release of the BFS will be strategically timed to coincide with the finalisation of these commercial arrangements.

“While no binding agreements are in place at this stage, the Company will continue to keep the market informed in accordance with our continuous disclosure obligations.”

“Importantly, the adjustment in timing does not affect the Company’s target to commence substantial mining operations by September 2025. The Company’s engagement with these firms is part of a broader strategy focused on production planning, contractor integration, and detailed execution. The current BFS phase represents the ideal window for early EPC involvement and this approach underscores the Company’s ongoing commitment to project advancement to the Government of Malawi.”

As the Government is promoting the minerals sector with several large-scale mines expected to roll out in the short to medium term, stakeholders in the mineral sector have expressed concern over shortage of skilled personnel in the country to work in the mines.

Several companies are expected to open mines in Malawi including ASX-listed Lotus Resources which is expected to start extracting uranium at Kayelekera in Karonga this month; ASX-listed Sovereign Metals undertaking feasibility studies to mine rutile and graphite at Kasiya in Lilongwe, ASX-listed Globe Metals & Mining to mine niobium and tantalum at Kanyika in Mzimba, Canada-listed Mkango Resources working on front-end engineering studies for rare earth mining at Songwe Hill in Phalombe, and ASX-listed Lindian Resources working to commence rare earth mining at Kangankunde in Balaka.

The Ministry of Mining introduced a number of mining related disciplines in the country’s tertiary institutions under the phased-out World Bank and European Union financed Mining Governance and Growth Support Project.

But Consulting Geoscientist Ignatius Kamwanje told Mining and Trade Review that despite the universities offering mining related programs, there are not enough to supply the medium and large-scale mines expected to come on stream.

Kamwanje said: “There are some universities that are offering geology and other mining related courses and this is a good gesture for the country.”

“However, there is really a shortage of labour force in the industry because many graduates lack practical experience which is exacerbated by the laxity of the industry to recognize fresh graduates, lack of extensive recognition of the roles of these personnel in the industry, and inadequate tailor-made courses to provide mining solutions.”

“It is my anticipation that these medium to large scale mines will absorb the labour force possibly as management trainees, geology/ mining professionals and also skilled plus semi-skilled labour with experience in mine environments and on the job training.”

“I still foresee expatriates dominating high ranking positions but the government should spearhead localization of the labour force.”

He further explained the need for the government to do screening of expatriates to ensure that only positions that are crucial and challenging are occupied by expatriates leaving others to locals.

Commenting on the development, Coordinator for Chamber of Mines and Energy Grain Malunga said there are higher chances that expatriates will dominate the positions if the government does not address the needs of the industry.

Malunga said: “Expatriates will dominate the mining sector if we continue to educate our youth without addressing the needs of the mining industry.

“Expatriate jobs must be strictly monitored to have relevant local professionals understudying them.”

Through various platforms, stakeholders including Civil Society Organisations (CSOs) have been advocating for increased participation of locals in mineral sector projects including recruitment of locals in high ranking positions in mining firms.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid emphasized the need to address the gap between academic training and practical experience as well as industrial demands of modern mining.

Rashid said: “I must point out that Malawi is not yet fully prepared to supply a sufficient and adequately skilled labour force for the oncoming wave of medium and large-scale mining operations.”

“While it is true that universities such as the Malawi University of Science and Technology (MUST) and the University of Malawi (UNIMA) offer mining-related programs, there remains a significant gap between academic training and the practical, industrial demands of modern mining.”

“Most graduates lack hands-on experience, exposure to advanced mining technologies, and specialized training in areas such as mineral processing, mine engineering, environmental management, and resource economics.”

Rashid said the gap creates a skills mismatch that forces the companies to fill key technical and managerial roles with expatriates.

He also said the dominance of expatriates in high-ranking positions in mining operations in countries like Malawi is often justified on the basis of “limited local capacity,” a claim that persists due to insufficient investment in targeted technical training and weak industry-academia linkages.

“To address this, Malawi must urgently, strengthen technical and vocational training programs tailored for the mining sector.”

“Malawi should also forge partnerships between industry and academia to ensure curricula meet market demands as well as implement policy incentives that require companies to gradually replace expatriates with trained Malawians.”

Rashid also spelt out the need for the establishment of a Mining Skills Development Fund to finance training of youths in mine-related professions to ensure that the country does not risk repeating past patterns where resource wealth fails to translate into meaningful employment for locals.

In many mining projects in Malawi, locals dominate non-skilled jobs with some recruited as interns while expatriates are employed as skilled personnel. The Malawi Government has, meanwhile, indicated that it is planning to establish a University that will concentrate on offering mining related courses.

Minister for Higher Education Jessie Kabwila said the institution will assist the country meet the employment needs of the sector as Malawi is developing mining as one of the key sectors in Malawi 2063 and Agriculture, Tourism, Mining and Manufacturing strategy which is being championed by State President Lazarus Chakwera.

Malawi Government’s prolonged ban on exportation of unprocessed gemstones continues to haunt Artisanal Small-scale Miners (ASMs) and dealers operating across the country.

In February this year the Ministry of Mining issued what was called a temporary ban on all exports of precious minerals to conduct a review of its mineral valuation framework, aiming to curb undervaluation and improve revenue collection.

The ban. which has now lasted about six months, has heavily affected ASMs and dealers.

In an interview with Mining and Trade Review, Maleta Gems and Jewelry said the prolonged ban has resulted in termination of contracts with international buyers who are now regarding Malawi as an unreliable gemstone source.  

MD for the firm, Percy Maleta said inaction and lack of communication by the Ministry of Mining continues to erode the trust that the firms in the sector earned and maintained with international buyers for years.  

Maleta said: “To date, no one seems to take ownership of the ban, neither the Principal Secretary, the Director General of the Minerals and Mining Regulatory Authority (MMRA) nor the Minister himself.

“Efforts by stakeholders to seek an audience or clarity have been met with silence, and this lack of transparency is deeply concerning and disheartening, making the entire gemstone family feel completely abandoned in the dark.”

The Malawi Government established a structured market for both gold and gemstones and empowered Export Development Fund (EDF) as corporate buyer under the Reserve Bank of Malawi (RBM). But Maleta said even though the move is commendable its execution has fallen short particularly for the gemstone subsector.

He said: “EDF currently does not have the financial muscle or operational model to absorb the full supply of precious and semi-precious stones being mined.”

“It behaves more like a commercial buyer than a strategic buyer, showing reluctance to purchase unless immediate resale is guaranteed and this short-term view does not align with the realities of the gemstone market.”

“EDF has also failed to diversify its buying. The market is not just about ruby and sapphire. most of which come from private mines or currently not being produced.”

“We have a wide range of coloured and ornamental stones that could drive value if properly marketed and supported by government structures.”

He said the export ban coupled with the failure of EDF to meet its mandate have left miners with limited options, a situation which has inevitably fueled illegal vending, as people seek alternative survival mechanisms.

Maleta, therefore, called for a transparent update on the status of the ban and meaningful engagement with industry players to chart a practical and inclusive path forward.

Concurring with Maleta, Co-Founder for Zozodo Gemstone Consultancy (ZGC) Emmanuel Phiri blamed EDF for being selective in buying the gemstones saying their mindset only dwells on making the entity realise more revenue not serving the nation.

  Phiri said: “Business has been greatly affected in a negative way. No investor is willing to invest, no capital forex to be generated through exports, this will result in shutdown of business due to lack of sales.”

Mining Expert and MD for Chiwandama GeoConsultants John Nkhoma while blaming the prolonged ban  said the sector is encountering challenges including secrecy and lack of production figures.

Nkhoma said: “Main problem is lack of audit.  The sector is very secretive. No one is revealing what they are doing and producing.”

“The government does not have the figures on the production of the sector.I remember sometime back government wanted to support the sector but faced problems because there were no figures relating to production and sales in the sector.”

Responding to the concerns, Acting Director in the Ministry of Mining, Mphatso Chikoti disclosed that there are in the process of finalizing a framework that will seal loopholes for smuggling gemstones.

Chikoti said: “We are working on a framework that will ensure that there are no leakages.”

“The framework has been finalized and we are now working with the Ministry of Justice, and what is remaining is a stakeholder meeting to have their input to map the way forward on how we can curb the smuggling of the gemstones.”

ASX-listed Sovereign Metals says it is making major progress towards completing its Definitive Feasibility Study (DFS) for the Kasiya Rutile-Graphite Project in Lilongwe, following the successful completion of extensive geotechnical investigations across critical infrastructure locations.

Sovereign MD and CEO Frank Eagar explains in a press statement that more than 400 individual tests have been conducted at the Kasiya site, targeting all major components of the project including the planned mining operations, processing plant, tailings storage facility (TSF), and the raw water dam. The work was carried out by ARQ Geotech (Pty) Ltd under the oversight of the Sovereign-Rio Tinto Technical Committee.

He describes the completion of the geotechnical fieldwork as a “significant milestone” in the company’s push toward de-risking the project.

“Completing these comprehensive infield geotechnical programs marks another significant milestone towards the completion of our DFS and another step in our systematic approach towards the development of Kasiya,” says Eagar.

He says that the investigations involved a wide range of surface and deep testing methods, including rotary core drilling, cone penetration tests with pore pressure measurements, dynamic probing, seismic surveys, auger drilling, test pitting, and trenching.

“These techniques were used to assess soil and rock characteristics beneath proposed infrastructure zones such as roads, processing areas, accommodation camps, power stations, and water storage sites. Samples collected during the program are also undergoing laboratory analysis to verify strength and composition”, says Eager. 

He points out that the preliminary findings from the investigation indicate favourable subsurface conditions that align with the regional geological expectations.

Eagar says, “the stratigraphy encountered across most infrastructure areas was generally consistent and comprised layers of topsoil, aeolian and colluvial transported materials, and reworked residual gneiss, transitioning into deeply weathered rock and then into hard bedrock derived from gneissic formations”

The consistency in geological profile will allow for more standardised foundation designs and construction approaches across the project site.

“This level of uniformity enables us to reduce engineering complexity and potentially lower construction costs,” he says.

He also adds that significantly ferricrete; an iron-rich, cemented soil layer found within the transported horizon has been assessed as potentially suitable for reuse as engineered fill. If confirmed through further testing, this could reduce the need for imported materials during construction and enhance cost-efficiency.

The data collected will be instrumental in finalising foundation and earthworks designs for infrastructure, improving slope stability planning, and evaluating the suitability of materials for construction.

 “This data will inform the design of foundations, slope stability, and material suitability ultimately contributing to safe, efficient, and cost-effective development,” says Eagar.

Eagar further explains that the geotechnical program represents one of the final critical technical components of the DFS, which is expected to guide investor and financing decisions. The findings are already being integrated into detailed engineering design work to optimise infrastructure placement and construction strategies.

Eagar remains confident in the project’s direction and said the work done so far reflects strong execution across all DFS workstreams.

“It reinforces our confidence in the viability of Kasiya as a world-class source of natural rutile and graphite,” he says.

As the DFS nears completion, Eager says Sovereign continues to follow a disciplined and technical approach to advance what it considers a genuine Tier-1 critical minerals project by making sure that each layer of progress brings Sovereign closer to establishing Malawi as a key player in the global supply chain for critical minerals

. Kasiya is the largest undeveloped natural rutile deposit in the world and also hosts significant quantities of flake graphite. Both minerals are classified as critical raw materials due to their use in technologies such as pigments, titanium metal, and lithium-ion batteries. 

ASX-listed Sovereign Metals has announced that at a time of unprecedented disruption in global graphite markets, with new U.S. tariffs fundamentally altering supply chain dynamics, the latest testwork on its graphite from the Company's Kasiya Rutile-Graphite Project in Lilongwe has delivered highly successful results.

The testwork focused on optimising the coating process for conversion of Kasiya derived spherical purified graphite (SPG) to coated spherical purified graphite (CSPG) while maintaining premium performance. The results will assist with ongoing offtake discussions with anode manufacturers.

Sovereign is developing Kasiya to potentially become the world's largest and lowest-cost natural graphite producer outside of China. MD and CEO Frank Eagar says: “Kasiya remains a primary rutile project, but our ability to also produce exceptional CSPG with world-class performance characteristics from our natural graphite concentrate is a further demonstration of the geopolitically strategic nature of Kasiya.”

“These new U.S. tariffs on Chinese graphite highlight the urgent need for reliable, high-quality alternatives. Kasiya's resource scale, long life, potentially lowest-cost non-Chinese producer, combined with our demonstrated technical excellence, positions us perfectly to serve battery manufacturers seeking secure supply chain diversification.”

Strategic Market Opportunity

The global graphite supply chain is experiencing fundamental realignment following the U.S. Commerce Department's 17 July 2025 announcement of 93.5% preliminary anti-dumping duties on Chinese graphite imports. Combined with existing tariffs, this creates an effective 160% barrier on Chinese graphite, fundamentally altering the economics for battery manufacturers seeking secure, cost-competitive supply chains. China currently controls approximately 75% of global graphite production and 97% of anode material processing, creating critical supply chain vulnerabilities that major battery manufacturers are now actively addressing.

Tesla, Inc. (Tesla) and Panasonic were among companies that opposed the new US tariffs, with Tesla’s submission to the U.S. Government stating that U.S. graphite producers have yet to demonstrate the “technical ability to produce commercial quantities” of graphite at the quality and purity required by Tesla and other battery cell manufacturers.

Eagar explains that once developed, Kasiya has the potential to become the world's largest and lowest-cost natural flake graphite producer, offering battery manufacturers a strategic alternative to Chinese supply chains for anode material feedstock.

“The latest successful coating testwork is a further demonstration of Kasiya’s increasing strategic importance,” he says.

Latest Testwork Validates Kasiya Graphite’s World-Class Quality to Anode Manufacturers

Optimisation testwork conducted by Prographite GmbH (Prographite) has once again demonstrated the exceptional characteristics of Kasiya graphite for CSPG production. The optimisation process successfully achieved target coating specifications and optimised inputs into the coating process while maintaining the premium performance metrics that position Kasiya graphite among the highest-quality sources globally.

Pitch coating is a standard refinement process where carbon-rich pitch material is applied to spherical graphite particles to create protective layers that enhance battery performance and longevity, turning SPG into CSPG. The latest testwork systematically evaluated pitch content to achieve optimal performance parameters.

 Key achievements from the process include:

• Process Efficiency Demonstrated:   Coating requirements optimised while   maintaining superior CSPG   characteristics.

• Premium Performance Maintained:   All target specifications achieved for   discharge capacity (>360mAh/g) and   first cycle efficiency (>94%).

• Physical Properties Achieved: Specific surface area (1.0 g/cm³) specifications met. Eagar explains that the data confirms that Kasiya graphite consistently delivers discharge capacity well above the critical 360mAh/g threshold while achieving first cycle efficiency above 94% - both key specifications for premium-quality natural graphite anode materials.

Customer Engagement Advances with Market Dynamics Creating Strategic Advantage

Eagar reports that initial samples of Kasiya fine flake graphite concentrate have been distributed to leading natural graphite anode producers and anode project developers.

He says these strategic engagements will support the development of offtake agreements while validating market demand for Kasiya's high quality battery-grade graphite.

“The Company continues advancing additional pilot-scale graphite concentrate processing to supply further concentrate material, with planning underway for a larger-scale concentrate processing run. These programs will support expanded customer qualification programs as development advances.” Eagar says.

Lotus Resources Limited (ASX: LOT, OTCQX: LTSRF) (Lotus or the Company) is pleased to provide an update on its Kayelekera Uranium Project in Malawi (Kayelekera or Project), as process plant refurbishment work nears completion ahead of first product this quarter.  

HIGHLIGHTS

• Kayelekera SAG mill refurbishment completed, grinding media loaded and   mill restart achieved

• Hot commissioning of crushing, grinding, pre-leach and leach areas   underway

• Elution, precipitation, drying and packaging circuit commissioning underway,   ahead of first uranium oxide (U3O8) product this quarter

• Lotus remains fully funded with A$77.3m cash  at the end of June   (unaudited), and no debt drawn .

Lotus Managing Director Greg Bittar commented: “Following the completion of extensive mill refurbishment, alignment and grinding media loading, we have restarted the Kayelekera mill. With the mill being such a critical aspect of the processing plant refurbishment, achieving its restart is a terrific milestone ahead of production at Kayelekera.

Whilst in Malawi for the mill restart, we updated the Government of Malawi, including the Ministry of Mining, on restart plans and the steps towards production this quarter.

We are currently feeding mineralised waste through Kayelekera’s mill as we verify its performance before transitioning to feeding in ore. With first ore through the mill, the restart of production at Kayelekera is on track for this quarter.

PROCESSING PLANT HOT COMMISSIONING, MILL REFURBISHMENT COMPLETE AND RESTARTED

The Kayelekera processing plant is now undergoing hot commissioning, which involves initially feeding the plant with mineralised waste before moving to ore. The plant will run on mineralised waste until the correct densities are achieved in the leach and resin in pulp circuits. Following this, the feed will be changed to ore while reagents are added to start leaching the uranium. Commissioning of the elution, precipitation and packaging and drying areas is underway, with first uranium to be produced this quarter as planned. 

The World Bank says while Malawi is on track to generate meaningful revenue from mining activities in the coming decade, the earnings will not be transformative enough to drastically change the country’s dire economic situation.

In its 21st edition of the Malawi Economic Monitor published in July 2025, the World Bank notes that government revenues from mining could rise to as much as 5 percent of Gross Domestic Product (GDP) by 2033 under an “unhindered” scenario and this would represent a substantial increase in domestic resources but would not be enough to overhaul the economy.

“This projected fiscal revenue would be significant but not transformative as it is approximately equivalent to the general budget support that Malawi used to receive from international donors before the 2013 Cashgate scandal,” the Bretton wood institution states.

The report explains that most of the mining income will come from corporate income taxes, followed by royalty payments and profit-sharing agreements. However, these earnings are expected to materialize gradually over the next five to 10 years and only if the government is able to implement existing fiscal policies effectively and see key mining projects through to completion.

The report says that in a “business-as-usual” scenario which includes only low- to medium-risk projects like Kayelekera and the Kasiya rutile mine, annual revenues could exceed US$200 million by the early 2030s, equal to around 10 percent of Malawi’s current total fiscal revenue, or 2 percent of GDP.

The Bank explains that, an “unconstrained” scenario includes more ambitious and higher-risk projects such as heavy sands in Makanjira, rare earths in Kangankunde and Songwe Hill, niobium in Kanyika, and graphite in Malingunde, potentially increasing government income up to 5 percent of GDP.

It reads: “New estimates indicate that government revenues from mining could reach up to 5 percent of GDP by 2033, depending on whether high-risk projects are completed and whether government can successfully capture revenues in line with the statutory fiscal framework.”

In addition to mining, the report highlights the importance of energy sector investments, citing the Mpatamanga Hydropower Storage Project as critical to Malawi’s long-term economic prospects.

The Bretton wood institution warns that ongoing power supply challenges including inconsistent generation and grid instability continue to affect industrial growth and service delivery and in response, the government is encouraged to fast-track projects like Mpatamanga to provide a more reliable and sustainable electricity supply.

It also states that, in May 2025, the World Bank Group’s Board of Directors approved a US$350 million grant from the International Development Association (IDA) to fund Phase 1 of the Mpatamanga Hydropower Project.

“The full project is expected to cost US$1.25 billion, with the remaining US$900 million expected to come from a consortium of development finance institutions.”

The report reads that the Mpatamanga project is one of the most transformational initiatives currently on the table. It will provide clean, firm energy to stabilize the national grid, reduce power outages, and support Malawi’s participation in regional power-trading markets, particularly through the Mozambique-Malawi Power Transmission Project.

The report also urges the government to implement reforms in the energy sector, including full adherence to Malawi Energy Regulatory Authority’s four-year electricity base tariff schedule. This will ensure the Electricity Supply Commission of Malawi (ESCOM) can cover operational costs, avoid debt accumulation, and invest in future upgrades.

“Despite political challenges, adherence to a cost-reflective tariff is important to enable ESCOM to effectively maintain the power network and save for future improvements,” the report advises.

The report concludes by urging Malawi to adopt urgent and targeted reforms both in mining and energy sectors to fully harness the benefits of ongoing mega projects and direct the country towards sustainable development.

The Malawi Government says it is putting in measures to protect local industries including cement and coal producers who have been complaining for a long time of unfair market competition from foreign products.

Public Relation Officer for Ministry of Trade and Industry Patrick Botha said in an interview that the government has begun introducing reforms aimed at protecting local industries.

“Local industries do get support in the area of duty waivers for capital equipment to support setting up or expansion and currently, cement import licenses are not being issued. That shows our commitment to protecting domestic production,” he said.

Botha highlighted the Ministry’s efforts to address Non-Tariff Barriers (NTBs but admitted this system relies on active reporting from affected stakeholders.

“We have already started implementing such reforms. The new policy on restricting certain imports is clear proof of this.”

Malawi’s coal and cement industries are facing mounting pressure due to what industry analysts say is weak trade protection as Malawi is party to regional trade agreements under Southern Africa Development Community (SADC) and Common Market for Eastern and Southern Africa (COMESA).

In a separate interview with Mining and Trade Review, Coordinator of the Chamber of Mines and Energy Grain Malunga says this uneven trade environment is hurting the mining sector.

He said that Malawi’s coal and cement industries are struggling to compete as cheaper imports continue to enter the market despite adequate local production capacity.

“It seems there is more of following country protection regulations than the protocol agreements. For example, Tanzania discourages Malawi coal from entering its market,” he said.

He also said that this restriction is particularly damaging to producers in the Northern Region, who are geographically closer to Tanzania than to the country’s major commercial hubs in Lilongwe and Blantyre.

Malunga explained that because the miners cannot access nearby markets, local coal becomes more expensive due to higher domestic transport costs. He bemoaned that Malawi’s own trade policies favour imports, saying “Malawi has favourable import terms for coal which makes local coal uncompetitive even within our own market and this scenario mirrors challenges in the cement sector, where foreign brands continue to dominate”.

Malunga said action is needed at border points where exporters often delay or face obstacles for shipments “due to security officers’ unruly behaviour.”  

“The behavior of security officers at borders should be reviewed. They must respect official documentation from the Ministry of Mining,” said Malunga.

He also recommended introducing “non-trade barriers” like quality standards to help local products remain competitive an approach which he says is widely used in other countries.

As Malawi pursues its industrialization goals under the Malawi 2063 development agenda, it is important for government to rethink about its reliance on international trade agreements and adopt more proactive measures to defend domestic production from unfair competition.

Malawi has a number of coal mines in the Northern Region which are mainly located in Livingstonia and Ngana Coalfields in Rumphi and Karonga Districts.

Tanzania’s restrictions in coal imports resulted in the companies losing the Tanzania export market to opt for local markets mainly in Blantyre and Lilongwe where there are experiencing stiff competition with imports from Mozambique.

Similarly, local cement producers, Shayona Cement Corporation which owns a clinker plant in Kasungu, and Cement Products Limited with a clinker plant in Mangochi, have been complaining of stiff market competition from foreign brands.