Mining & Trade News

Senior government officials representing Malawi's Technical Working Group (TWG) and Land Access Resettlement Working Group (LARWG) have visited the rehabilitation trial site undertaken by Sovereign Services and expressed satisfaction with progress.

The visit reaffirmed the government's commitment to promoting responsible mining investment aligned with national development goals.

The visit also highlighted the government’s pledge to promote sustainable mining investments in Malawi while ensuring environmental and social safeguards.

Acting Director of Mines at the Ministry of Mining Mphatso Chikoti emphasised the government’s role in fostering mining sector growth.

“As the Department of Mines, as well as the Ministry of Mining, our primary role is to promote mining investments in Malawi. Being here today is one way of fulfilling that mandate,” said Mr Chikoti after touring the rehabilitation site.

He noted the importance of mining companies working in collaboration other sectors such as agriculture and tourism, so that the country could experience economic development that is multisectoral lead.

"Mining cannot take place in a vacuum".

It takes place on land, and it has to exist with the surrounding communities. Here is a clear demonstration that after mining, the land can be rehabilitated. It can go back to its original state, even being improved. With the Agriculture, Tourism, and Mining (ATM) strategy, you already see here that there is coexistence. There is agriculture taking place here after mining has been done. Who knows, maybe tourism as well. Sovereign is doing a good job, and this is the way to go. It's a clear demonstration that even the other companies can also follow what Sovereign is doing,” he continued.

Addressing public misconceptions, Mr Chikoti clarified that Sovereign was currently operating under an exploration licence and had not yet commenced active mining, and that once mining began, it would be a transparent process.

“Mining is a structured cycle with multiple stages. Sovereign is still in the exploration phase, conducting feasibility studies and market surveys before any mining licence application is submitted."

“When a mining licence is granted, the entire country will know. We are closely monitoring Sovereign’s activities and expect a formal application in due course,” he continued.

Commissioner for Estate Management and Evaluation Mickson Chiundira commended Sovereign for adhering to responsible mining through its trial rehabilitation efforts.

“Last time we visited, there were pits and dams. Now, we see maize growing. If this is the standard post-mining, it is very promising,” he said.

Mr Chiundira also outlined the government’s measures to ensure fair land acquisition and compensation under the Land Acquisition and Compensation Act.

“We work closely with investors to ensure communities are adequately compensated, preventing conflicts and ensuring smooth project implementation,” he added.

The successful completion of Sovereign’s rehabilitation trial, which saw the land promptly restored and returned to farmers without missing a planting season, underscores the company’s commitment to responsible mining practices.

Alongside ongoing environmental assessments aimed at mitigating potential impacts, the company’s dedication to local communities is demonstrated through expanded educational scholarships, enhanced conservation agriculture training for hundreds of farmers, and significant improvements to water infrastructure, with numerous boreholes repaired and newly drilled.

The government-declared Special Planning Area, supported by Sovereign, provides a crucial framework for collaborative, managed development and controlled land use moving forward. Sovereign Services has continued to engage proactively with stakeholders, maintaining transparency via regular updates and an accessible grievance mechanism.

While the Kasiya Rutile-Graphite Project remains in the study and engineering phase this year, with sample collection continuing purely for technical purposes without generating revenue, the company is steadfast in its approach to progress the project responsibly, prioritising environmental stewardship and community partnership, ahead of securing financing for future construction and resettlement phases.

Kasiya Rutile - Graphite Exploration Project

The project which is located in Kasiya in Lilongwe District is owned by ASX-listed resources group Sovereign Metals, which roped in world mining giant Rio Tinto as its strategic partner.

Latest Developments

Sovereign Metals has successfully completed mining trial stage of its Pilot Mining and Land Rehabilitation Program at Kasiya. Hydraulic mining trials at Kasiya were successfully concluded as part of the Kasiya Optimisation Study. Prior to the hydraulic mining trials, a dry mining trial successfully excavated a test pit to a depth of 20 metres. The mining trials confirm that the soft, friable Kasiya ore can be efficiently mined. Following the conclusion of mining trials, land rehabilitation demonstrations were conducted commencing with the backfilling of the test pit.

On September 28, 2023, the Company released results of Pre-Feasibility Study (PFS) which confirmed Kasiya as potentially a major critical minerals project with an extremely low carbon footprint delivering major volumes of natural rutile and graphite while generating significant economic returns.

The results indicate that the proposed large-scale operation will process 24 million tonnes of ore per annum to produce approximately 245kt of natural rutile and 288kt of natural graphite per annum once at steady state.

Kasiya is the largest natural rutile deposit and second largest flake graphite deposit in the world.

Both rutile and graphite are critical to the world economy as well as crucial to decarbonisation solutions required to meet “Net-Zero” and other targets set by policymakers worldwide.

Kayelekera Uranium Mining Project

The project is located at Kayelekera area in Karonga District.  It is owned by ASX Lotus Resources which has an 85% interest in the project while the remaining 15% is owned by the Government of Malawi. Lotus acquired the major stake in Kayelekera in March 2020 from another Aussie firm Paladin Energy.

Latest Developments    

Kayelekera restart continues to progress as planned, with first uranium production on track for third quarter of 2025.

Lotus last year signed a Mine Development Agreement (MDA) with the Malawi Government and is fast-tracking preparations to start mining in light of the soaring uranium prices on the global market.

The Company completed a Definitive Feasibility Study (DFS) which confirmed Kayelekera Uranium Mining project as one of the lowest capital cost uranium projects globally whilst also having the ability to quickly recommence production.

Kangankunde Rare Earths Project

The project located at Kangankunde Hill in Balaka is owned  by ASX-listed Lindian Resources.

Latest Developments

Lindian is fast-tracking work at Kangankunde to move into mining stage. It has just announced that early-stage site works have officially commenced, which is a key milestone in the delivery of one of the world’s most significant undeveloped rare earth assets.

Following on from the start of construction of a new 5-kilometre access road in February 2025, the Company has commenced initial civil and infrastructure development.

The Company published a Mineral Resource Estimate (MRE) which established Kangankunde as one of the world’s largest rare earths projects pegging the rare earth resource at 261-million tonnes averaging 2.19% Total Rare Earth Ore (TREO) above a 0.5% TREO cut-off grade.

The Kangankunde deposit contains excellent grade, uniquely non-radioactive material and a high percentage of rare earth elements that are key to the clean energy transition. Lindian also released a feasibility study on the Stage 1 development. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.

The feasibility study now paves the way for Lindian Resources to secure financing (US$40M pre-production capital cost) for the Stage 1 Kangankunde Project development.

Kangankunde is now firmly established in a class of rare earths projects that are regarded as the very best in the world as defined by scale, grade and the quality of resources.

Songwe Hill Rare Earths Project

The project is located at Songwe Hill in the Southern District of Phalombe. It is owned by Canada’s TSX Venture Exchange and the AIM Market of the London Stock Exchange listed UK firm Mkango Resources through its subsidiary Lancaster Exploration.

Latest Developments

Mkango is currently conducting front-end engineering design for the project. After 13-years of mineral exploration investment amounting to over US$30-million, Mkango Resources signed a Mining Development Agreement for Songwe Hill with the Malawi Government.

The Company announced exciting results of a Definitive Feasibility Study (DFS) for the project which pegged the net present value (“NPV”) for the project at US$559.0-million post-tax, using a 10% nominal discount rate, with an internal rate of return (“IRR”) of 31.5%, payback period of 2.5 years from full production (5 years from start of capital expenditure) and post-tax life-of-operations nominal cash flow of $2.1 billion.

Songwe is now confirmed as one of the very few REE projects globally to have reached the DFS stage, with a full Environmental, Social, Health Impact Assessment (“ESHIA”) completed in compliance with International Finance Corporation (IFC) Performance Standards and The Global Industry Standard for Tailings Management (2020) (“GISTM”) adopted for design and management of the tailings storage facility.

The project is targeting rare earths such neodymium, praseodymium, dysprosium and terbium which are critical for the green transition, used in permanent magnets for electric vehicles, wind turbines and many electronic devices.

The DFS results show that Songwe Hill will have a long operating life of 18 years, with average production of 5,954 tonnes per year total rare earth oxides (“TREO”) for the first five years of full production, including 1,953 tonnes per year of neodymium and praseodymium oxides, and 56 tonnes per year of dysprosium and terbium oxides, in a mixed rare earth carbonate (“MREC”) grading 55% TREO, generating nominal earnings before interest, taxes, depreciation and amortisation (EBITDA) of US$215 million per year.

Tundulu Rare Earths Exploration Project

The project is owned by ASX-listed DY6 Metals through its subsidiary Green Energy Exploration and involves exploration for rare earths and phosphate in Tundulu, Phalombe.

Latest Developments

DY6 has announced exciting results for its exploration work for rare earths and phosphate at Tundulu.

The firm collected a total of 63 metallurgical samples from 37 sample locations along high-grade historic trench (TUTR10) at Tundulu.

The sampling results returned up to a high of 3.35% Total Rare Earth Ore (TREO) and 27.5% Phosphorus pentoxide (P2O5) over the sampled 83m length of trench TUTR10. An exciting component of the sampling results is the average HREO, being 13% of the TREO basket.

Undetectable to very low levels of deleterious elements including mercury, lead and cadmium in the phosphorus (P) rich rocks confirms the exceptional grade quality of the phosphate at Tundulu; and the sampling is representative of the mineralised Bastnaesite and Apatite carbonatite rock types exposed within the trench.”

DY6 is also conducting rare earths and niobium exploration at Salambidwe in Chikwawa and Ngala Hills in Balaka. The Company completed an airborne geophysical survey for Salambidwe as part of the exploration process.

Kanyika Niobium Project

The project is located in Kanyika in Southern Mzimba. It is owned by ASX-listed Africa focused resources group Globe Metals and Mining.

Latest Developments

Globe Metals last year signed a Community Development Agreement with the community in Kanyika.  

The Company last year signed a Mine Development Agreement with the Malawi Government and is scouting for off-take partners.

Globe finalized feasibility studies at Kanyika which is a multi-commodity deposit containing niobium, tantalum, uranium and zircon.

The project will produce high purity niobium pentoxide and tantalum pentoxide powders which will be used as additives to steel to enable steel mills to produce high-margin products through enhanced flexibility, weight reduction and strength.

Globe is in the process of setting up a refinery to process the Kanyika ore in Lilongwe which will play a big role in job creation and skills transfer.

Chambe Basin Rare Earths Project

The project is located in Chambe Basin area in Mulanje Mountain, and is owned by local firm Akatswiri Mineral Resources.

Latest Developments

Akatswiri has completed Phase 1 drilling program as part of rare earths exploration. The Company is now waiting for the drilling results as the samples extracted from the site are being processed at a laboratory in Perth, Australia.

The Company is confident of coming up with exciting results because rare earth mineralisation is visible in all the samples.

Chambe is a unique rare earths deposit as it is an ionic clay deposit. These deposits generally have several advantages over hard rock deposits, including lower operating and capital costs and shorter timelines for development.

Chambe is one of the few large ionic clay-hosted rare earth elements (REE) deposits outside of China, where currently a significant portion of global REE production is sourced.

The Chambe basin has a central part that has recessively weathered soils that are up to about 15 m thick containing REE’s of the ionic adsorption.

Akatswiri’s tenement area has also 30 million tonnes proven bauxite resource and the Company has conducted a review of previous feasibility studies which has established the mining of bauxite as feasible taking into account current technological and market developments.

  Tengani Titanium Project

The project is owned by a local firm Crown Minerals.

Latest Developments

Crown Minerals is conducting technical studies while scouting for strategic partners to launch mining works.

ASX-listed Lotus Resources, which is advancing preparations to resume uranium mining at Kayelekera Mine in Karonga, has announced that it has signed two key agreements with the Electricity Supply Corporation of Malawi (Escom) to facilitate the Kayelekera Project being connected to the power grid and the supply of electricity from the grid to the Kayelekera Project.

Lotus has also signed a binding “Contract for the Sale and Purchase of Natural Uranium Concentrates” with North American power utility PSEG Nuclear LLC reflecting the previously announced term sheets.

Lotus Managing Director Greg Bittar comments: “This is another terrific milestone towards the optimisation of the Kayelekera Project. Together, these agreements cover the design and construction of a new transmission line and substation infrastructure connecting the Kayelekera site to an upgraded substation in Karonga and the provision of electricity to the mine.”

“Whilst these agreements were being finalised, Lotus, working with its consultants, electrical engineering group ECG Engineering and ResourcesWA (a specialist energy and mining group), completed a tender for the scope of works for the grid connection and substation works with fixed price proposals now received.”

Lotus signs key agreements to enable grid connection

The Power Implementation Agreement (PIA) and Power Supply Agreement (PSA) (collectively, the Agreements), provide for Lotus to finance, design and construct a new transmission line and substation infrastructure at Kayelekera.

Bittar states that on completion of construction and commissioning, Lotus will transfer ownership of the entirety of the line and substation infrastructure at Kayelekera to Escom.

The transmission line and substation infrastructure will connect Kayelekera to Escom’s Karonga substation and the Malawi power grid, enabling the supply and purchase of electricity to the mine through the PSA.

He reports that “the PSA is for a 10 year term, however, the Company may terminate earlier by giving at least 30 days prior notice with no penalty.”

Electricity tariffs are based on the tariffs set by the Malawi Energy Regulatory Authority (MERA) for local consumers.

Tender process completed, construction contracts being finalized  

 Lotus appointed ECG Engineering Pty Ltd (ECG) to manage the supply of power to the Kayelekera Project and ECG conducted a formal tender process involving:

• the extension of the existing Karonga Substation 66kV bus, installing a new 66kV line feeder bay and associated secondary systems;

• construction of approximately 45km of 66kV transmission line; and

• construction of a new Kayelekera Substation and associated systems, (together, the Powerline Project). Bittar explains that following tenders, the estimated cost for the Powerline Project is in line with the US$20.6 million estimated in the Accelerated Restart Plan 2.

He says: “This estimated cost excludes any potential battery energy storage system (BESS), which the Company estimates will cost circa US$4million. The Company is still reviewing the feasibility of the BESS as part of its power supply arrangements.”

“Whilst the Company continues to explore financing, including off balance sheet alternatives, for the power grid connection and potential battery system, the majority of the capital expenditure for the Powerline Project is expected to be spent once production has commenced at Kayelekera.”

The Environmental Social Management Plan (ESMP) for the transmission line and substations was approved by the Malawi Environmental Protection Authority (MEPA) in December 2024.

Bittar reports that Lotus will now work with ECG and ResourcesWA to finalise the design, construction and supply contracts and commence work to enable the connection to the power grid as soon as possible in 2026.

Binding offtake contract with PSEG Nuclear LLC

He says further to the ASX announcements dated 3 September 2024 and 29 January 2025 regarding the signing of non-binding and conditional term sheets for the offtake of 1.6M lbs in total for the 2026 – 2029 period, the Company has now reflected the term sheets in a binding and non-conditional “Contract for the Sale and Purchase of Natural Uranium Concentrates”.

PSEG Nuclear LLC is a subsidiary of Public Service Enterprise Group (PSEG), a publicly traded diversified energy company based in Newark, New Jersey. PSEG Nuclear LLC operates three nuclear generating units in southern New Jersey: Salem Generating Station Units 1 and 2, and the Hope Creek Generating Station. These facilities are located at the Artificial Island site on the Delaware River.

Lotus, which purchased the Kayelekera tenement from another Aussie firm Paladin Energy, renewed the mining licence for a further 15 years in 2021. The Company also signed a mining development agreement with the Malawi Government and a community development agreement with the local community as required by Malawi’s Mines and Minerals Act.

Despite the Reserve Bank of Malawi (RBM) operating the structured market for gold and gemstones for years now through its subsidiary Export Development Fund (EDF), Artisanal and Small-scale Miners (ASMs) dealing in these minerals say they are continuing to experience a host of challenges in finding a formal market for their minerals.

Chairperson of ASMs in Malawi who is also President of the Federation of Women and Youth in Mining (FWYM) Flore-Annie Kamanga said in an interview that the problem emanates from lack of licensed buyers as EDF officers are not available to buy the minerals in all mining areas, difficulties in obtaining export permits, and a lack of knowledge about pricing mechanisms and value addition.

Kamanga said: “Small-scale miners primarily sell their minerals through informal channels due to limited access to formal markets. This forces the miners to deal with middlemen who offer very low prices.”

“There are also difficulties in obtaining export permits leading to smuggling, and limited knowledge of pricing mechanisms and value addition, which results in miners being exploited.”

Kamanga also pointed out that RBM’s verification standards require documentation that many miners lack such as proof of legal mining and official export licenses.

“The costs associated with meeting verification standards are too high for most artisanal miners. There is also limited awareness and technical knowledge on how to comply, and bureaucratic delays in obtaining necessary approvals make compliance unachievable.”

However, Kamanga believes that mining cooperatives can offer a viable solution to the problems.

“Forming cooperatives can be a game changer as through the cooperatives, ASMs can pool resources together to afford legal compliance costs, strengthen miners’ bargaining power to negotiate better prices, facilitate training on verification processes, and enable direct engagement with regulatory bodies like RBM.”

She, however, said the cooperatives will require adequate support to be effective including provision of access to affordable loans or grants to cover compliance costs. They will also need technical support including training on mineral valuation, record keeping, and proper mining practices.

“The government must also facilitate direct sales to licensed buyers and streamline the verification process to make compliance more accessible,” Kamanga said.

Kamanga observed that mining cooperatives have already helped many miners formalize their operations and secure mining licenses.

“They provide financial assistance for compliance-related expenses and offer collective support in meeting government regulations, including RBM verification standards. However, their success depends on strong leadership, proper governance, and government support.”

Meanwhile, RBM is seeking independent assessors for gold and gemstones. The Bank says the assessors will assess the authenticity of the purchased minerals, weight.

The Malawi Mining and Minerals Regulatory Authority has granted a prospecting licence to ASX-listed DY6 Metals for the Karonga tenement which covers a recently identified high potential Copper (Cu) mineralisation anomalous area.

 DY6 Chairman Dan Smith says in a Press Statement that the licence grants to DY6 the exclusive right to prospect for copper, rare earth elements, lithium and other minerals for a term of three years with an option to renew for a period not exceeding two years.

Smith explains that preliminary reconnaissance/ surveillance sampling work on the licence area revealed occurrence of elevated Cu grades, with initial portable XRF results ranging from 1.4 to 7.8% Cu in rock with the results to be verified using standard laboratory-based XRF analytical assaying methods.

He states: “DY6 has recently acquired and completed reprocessing of historic hyperspectral survey data, which has been used to map areas with high probability for copper mineralisation. The results from this exercise correlate well to the mineralisation identified in the sampling work.”

“Historic anomalies from regional airborne geophysical radiometric and magnetic data appear to correlate with both the hyperspectral probability copper mineralisation mapping and the preliminary sampling reconnaissance work conducted.”

“Exploration for Cu and other minerals will continue on the licence area.”

The Karonga Prospecting Project is located about 440km north of the capital Lilongwe. It can easily be accessed using Karonga-Chitipa M1 Road turning to the west at Kasikisi School signpost along the M1 Road.

Geology and Mineralisation

The Karonga area is associated with a series of NW-SE and N-S trending ridges with metamorphic Basement complex rocks commonly identified as windows within the Karroo System which overlies the basement. The Karroo System units are typically sandstones with carbonaceous shale formations.

The eastern part of the licence area is overlain by several patches of Karoo sediments and Cretaceous to recent lacustrine sediments, the interrelations of which are complex due to unconformities and faulting. This area is part of the northern sub-province of the Malawi Province of the Mozambique belt, active between about 700-400 million years ago. The major lithological components are gneisses and intrusives of the Misuku Belt, representing the south-eastern extension of the Ubendian Mobile Belt of south-western Tanzania into Malawi.

On a more local scale, the licence area is comprised of a suite of quartzite rocks, pegmatitic rocks and amphibole gneisses that intrude into the basement gneissic rocks forming the wall rock of the project area. The lithologies have a general NW-SE trend and are dipping west / south-west at very steep angles ranging from 600 to 850.

The presence of base metals and other related metal mineralisation is evident in the pegmatitic rocks and quartz zone (quartzite) group. The quartzite unit has clear malachite and azurite coexisting with sulfide minerals indicating the presence of copper and other base metals.

Surveillance/Initial Reconnaissance Work Done

1.    Surveillance Site Visit

Four samples were collected on a recent reconnaissance visit to the site. The visit targeted an anomaly which was identified using a combination of geology and aeromagnetic data.

The samples were collected on a mineralised quartzite zone, which displayed disseminated mineralisation of malachite and azurite with sulfides. These samples were analysed using an Olympus Avanta Portable XRF (pXRF) machine.

Results showed elevated Cu grades ranging from 1.4% to 7.8% Cu. These samples were collected on a 60cm thick zone of an exposed portion of a 40 – 50m long quartzite zone.

The samples will be sent to SGS Randfontein laboratory in South Africa for a standard XRF analytical procedure to verify the Cu grades and other minerals’ grades obtained from the pXRF.

Samples collected on surveillance site visit Cu analytical results (pXRF

2. Hyperspectral Data Analysis and Interpretation

Historical satellite imagery data has been acquired, re-processed and interpreted by an experienced spectral data analyst from Dirt Exploration. This is intended to assist with probability mapping of several minerals including Cu mineralisation. 

The data is extracted by spectral unmixing of the Sentinel-2 VNIR (Visible & Near Infrared) and SWIR (Short Wave Infrared) satellite imagery. Sentinel-2 VNIR/SWIR imagery is the highest spatial resolution satellite imagery available with 10m resolution.

Using a geochemical exploration technique called Mobile Metal Ions (MMI) the extracted and unmixed spectral bands provide some diagnostic mineral responses in the regolith (overburden / outcrop rock material) above a buried mineral deposit.

In the case of Cu mineralisation, six end-members are anomalous over Cu occurrences: azurite, gypsum, illite, hypersthene, beryl and jarosite.

“The results of the spectral data analysis combined with the aeromagnetic data signatures and confirmed by the four geochemical samples analysed using the pXRF machine shows the potential of the Karonga licence area for copper mineralisation and possible occurrence of a copper deposit that requires to be investigated further,” says Smith.

He explains that further exploration work is currently planned to follow the anomalies identified in the surveillance activities, including geochemical analysis of the four collected samples at SGS Randfontein laboratory in South Africa to verify and validate the results obtained from the pXRF machine.

The planned activities at the site include detailed geological mapping of the licence area; and detailed geochemical sampling of surface outcrop rock chips, soils and where possible trenching to be considered.

“The outcome of the activities above will lead to target generation for a future drill program, which will in turn be used for mineral resource and reserve estimations,” Smith says.

Stakeholders in the extractive sector have expressed concern over the failure by the Ministry of Mining to conduct thorough and regular inspections of mining fields as a result of inadequate funding the Ministry receives from Treasury for its mandatory duties.

The stakeholders say despite efforts by the Ministry to ensure that mining zones adhere to health and safety measures, lack of funding remains a major challenge for the Ministry to visit many mines for inspection.

Mining expert and Consulting Geoscientist Ignatius Kamwanje said: “The Ministry lacks inspection. They are rarely on the ground due to low funding levels.”

“The Ministry has tried but not done enough to ensure mining companies adhere to precautionary measures.”

“The other major challenges impeding mine inspection work are lack of sensitization, engagement and capacity in terms of training in the sector; lack of equipment for inspection and; corruption.”

Concurring with Kamwanje, Artisanal and Small-scale Mining (ASM) Consultant Chikomeni Manda said poor inspection mainly in small scale mining areas is contributing to the challenge of lack of funding and capacity by ASMs.

Manda also blamed the Malawi Environmental Protection Authority (MEPA) for not fully executing its mandate of protecting and managing environment and natural resources in ASM mining sites.

Said Manda who is Managing Partner for Perekezi ASM Consulting: “When it comes to inspection by the Ministry, it is very poor. This is because the Ministry is poorly funded to curry out such tasks.”

“MEPA is also not doing enough when it comes to inspections. There is a lot of mercury use in ASM gold mining, which is a very dangerous substance to both humans and the environment.”

“The major challenge is in ASM, when it comes to medium, and large scale mine, it is better when it comes to precautionary measure, though there might also be some minor violations due to minimal inspections.”

He also called for more investment in resources and technology to ensure that miners comply with health and safety standards. In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga said there is a need for a robust licensing system to ensure that licences are given to responsible investors who understand and utilize mine safety regulations.

“Proper licensing of exploration licenses using a set guidance is crucial to avoid political decisions that will give licenses to speculators and crooks,” said Malunga.

The concerns come barly months since the Ministry of Mining in conjunction with the Malawi Bureau of Standards (MBS) launched Occupational Safety and Health Standards in Mining Sector.  

The standards are part of Malawi's commitment to Malawi 2063 blueprint and were developed under the Southern Africa Tuberculosis and Health Systems Support Project (SATBHSSP) with backing of the World Bank.

Malawi joined Lesotho, Zambia and Mozambique to adopt such mining safety standards under the project which started in 2017 and ends this June.

Miners are exposed to a range of health occupational hazards psycho-socio, ergonomic, biological, physical and chemical that cause injuries, microbiological contamination, and acute and chronic disease like respiratory disorder.

The Malawi Government says it is implementing a number of strategic reforms in the mining sector aimed at stimulating economic growth and maximizing returns from the country's rich mineral resources.

These reforms are outlined in the 2025 Economic and Fiscal Policy Statement by the Minister of Finance and Economic Affairs Honourable Simplex Chithyola Banda.

Chithyola Banda reports that following the gazetting of the Mines and Minerals Act in 2023, the government established the Mines and Minerals Regulatory Authority (MMRA) in July 2024.

He says: “The Authority is now fully operational, with a Director General, Board of Directors, and technical officers deployed through secondment arrangements.”

“In the 2025/26 fiscal year, government will continue to build the capacity of the MMRA, and complete the recruitment process to ensure it delivers on its mandate.”

Chithyola Banda also says that in a bid to ensure that the country retains significant value from its natural resources, government is advancing the operationalization of the Malawi Mining Investment Company, a state-owned enterprise.

“The registration of the company is in its final stages. The 2025/26 fiscal year will focus on making the Malawi Mining Company fully operational as the company will strengthen government’s strategic role in the sector,” he says.

To improve transparency and efficiency in the allocation of mining rights, the Minister states that the government has pledged to champion transparency in mining agreements, licensing, and revenue flows. This includes maintaining open access to the cadastre system and consistent reporting through the Malawi Extractive Industries Transparency Initiative (MWEITI).

Chithyola Banda says: “In the 2025/26 financial year, the government will modernize the mineral licensing process by strengthening the web-based cadastral system.”

“This system will enhance accountability and reduce bureaucratic delays in issuing mining licenses and will make sure that mining companies are complying with environmental regulations, uphold human rights, and fulfil their tax obligations.”

The Minister also highlights that the government is now focusing on exploring high-value minerals crucial for green technologies. These include rare earth elements, lithium, and graphite.

“Increased efforts will be directed towards conducting geoscientific surveys and assessments in areas with high potential for critical minerals.”

Chithyola Baznda also says while recognizing the potential of artisanal miners, government has pledged to finalize the Artisanal and Small-scale Mining Policy in the 2025/2026 fiscal year.

“The policy aims to create an enabling framework for ASM activities, while also facilitating access to capital and modern technologies for small-scale miners,” he says.

The Minister also discloses that Malawi is working with the Commonwealth Secretariat (COMSEC) to revise the Petroleum Exploration and Production Act, in order to align it with international best practices. Plans are also in place to re-demarcate oil and gas blocs to optimize exploration and production potential.

Chithyola Banda also says government will conduct a comprehensive review of the Mines and Minerals Policy and develop new regulations under the Mines and Minerals Act.

He also says efforts are underway to revise the Explosives Act (1968) to strengthen oversight of explosives usage within the mining sector.

“Alongside the Act, the Explosives Regulations will also be drafted, addressing operational practices and safety protocols.”

The outlined reforms reflect a growing recognition by the Government of the mining sector’s role in Malawi’s long-term development agenda. If successfully implemented, the reforms could unlock significant economic opportunities, create jobs, and increase revenue generation from both large-scale and small-scale mining operations.

The Reserve Bank of Malawi (RBM), which is operating the gold structured market through its subsidiary Export Development Fund (EDF) is buying the precious mineral at a price higher than the price on the international gold market.

Mining & Trade Review has established that the Central Bank is buying gold at MK260, 000 per gram surpassing the international market price which is now at around US$100.24 equivalent to MK172,795 per gram on a rate of Mk1,727.38 to a dollar.

Commenting on the development, Coordinator for Chamber of Mines and Energy Grain Malunga opined that the decision by RBM is aimed at competing with the black market whose prices keep on escalating. Malunga said even though the target is to dominate the market, the central bank is at risk of losing more money in a move to curb illegal trading.

He said: “The RBM is trying to capture all the gold being produced in Malawi and is setting its price competing against the illegal market.”

“The negative impact is that the Bank will lose a lot of money while trying to curb illegal trading.”

MD for Maleta Gems and Jewelry, Percy Maleta said buying gold at that price has negative impact to the countries’ economy including inefficiencies in the economy and putting pressure on foreign exchange reserves.  

Maleta said: “Buying gold at a K260,000 premiums over international prices could lead to inflation, distort market dynamics, and strain the country's budget.”

“It may create inefficiencies in the economy and put pressure on foreign exchange reserves.”

ASM consultant Chikomeni Manda commented that RBM is likely make loses the time they will think of selling the gold. Manda said: “It is very surprising to see RBM offering the highest buying price of gold in the whole world.”

“I think they are doing this to compete with the black market buyers, who are buying the gold using the black market dollar exchange rate.”

“With such an abnormal price, it will be very impossible for RBM to make a profit out of the gold.”

In a separate interview, Mining Expert Ignatius Kamwanje however said RBM’s offer of high gold purchasing prices to ASMs is an encouragement to local miners to start taking mining as a serious business in return to increasing the Bank’s reserves. On the other hand, he feels that the decision would influence smuggling of gold from outside the country to be sold at RBM at a higher price.

  Kamwanje said: “The government is pegging highly possibly because they want to accumulate enough reserves by encouraging locals to mine and sell to RBM.”

“By doing so there is rampant gold mining, unfortunately others are still doing it illegally.”

“But the negative impact could arise from those who smuggle gold from outside the country to sell in Malawi leading to competition with locals and this externalizes the much-needed forex in one way or another leading to forex shortage.”

RBM, which also buys precious gemstones from ASMs, established the structured gold market in 2021 and has to date managed to purchase gold amounting to 293 kilograms valued at US$27 million which is about MK47 billion.  

The Ministry of Trade and Industry, in collaboration with institutions of higher learning and financial bodies, has rolled out initiatives aimed at equipping individual Artisanal and Small-scale Miners (ASM) and cooperatives with the necessary skills, technology, and funding to enable them process minerals locally before exporting.

In an interview with Mining and Trade Review, Director of Micro, Small and Medium Enterprises (MSMEs) in the Ministry of Trade and Industry Limbikani Kachiwaya explained that the Malawi Government has introduced programs to train the miners, provide processing equipment, and facilitate access to financing.

“We are determined to ensure that our minerals add more value to the economy before leaving the country,” Kachiwaya said.

He explained that at the heart of this initiative is the incubation program at the Small and Medium Enterprises Development Institute (SMEDI) center in Mponela. The facility provides training and access to value addition machinery, enabling miners to refine and enhance their raw materials.

“This program allows aspiring miners to gain hands-on experience with cutting and polishing techniques, among other skills,” he said.

To strengthen these efforts, the government has partnered with the Malawi University of Business and Applied Sciences (MUBAS) and the Malawi University of Science and Technology (MUST) to establish industrial parks that will double as incubation centers.

“Machinery from previous government programs has already been donated to these institutions, and an official Memorandum of Understanding (MoU) is set to be signed soon. The industrial park at MUBAS is nearing completion, with equipment installation at 99 percent, while work at MUST is ongoing,” he said.

In addition to training individual miners, the government has facilitated the formation of mining cooperatives, with 10 groups already receiving training in partnership with the Department of Mines in the Ministry of Mining.

“These cooperatives are expected to benefit from the expertise at MUBAS and MUST, ensuring they acquire the necessary skills to produce high-quality, market-ready mineral products. The training programs are scheduled to commence in this financial year,” Kachiwaya said.

To ensure that small-scale miners have the financial backing to transition from raw mineral extraction to value addition, the Ministry of Trade has engaged the National Economic Empowerment Fund (NEEF).

“The Ministry has successfully written a proposal to NEEF for a dedicated loan product tailored for mining cooperatives. Eligible groups can now access up to K250 million, with potential extensions up to K500 million for viable projects. This funding will allow cooperatives to acquire advanced processing machines from international suppliers and establish production lines capable of competing in both local and foreign markets,” he said.

Another key element of the government’s approach will be the formation of a union that will bring together primary cooperatives. This will enhance production capacity and ensure that locally processed minerals are produced in large quantities to penetrate international markets.

“Small-scale miners, when working individually, lack the capacity to scale up production. But by pooling resources under a union, they can operate at an industrial level and negotiate better prices on the global market,” Kachiwaya stated.

In a separate interview, Acting Director for Mines in the Ministry of Mining, Mphatso Chikoti explained that the Ministry of Mining developed the Mines and Minerals Policy (2013-under review) which, among others, promotes investment in downstream value-addition of minerals in the country—for instance, cutting and polishing of gemstones and production of jewellery.

He said that the Ministry has a Laboratory and Research Division, founded in 1981 alongside other divisions of the Department of Mines. This division was established to provide training to small-scale artisanal miners and mining cooperatives on how to use processing and refining equipment.

“Additionally, it delivers training to improve the quality of mined products. Training on mineral processing technologies and proper gemstone grading methods ensures an improvement in the quality of the final products,” Chikoti said.

He also stressed the need for formalization, noting that illegal mining remains a significant challenge to value addition efforts. Chikoti explained that illegal miners, often operating in remote areas, continue to use rudimentary methods that make it difficult to enforce quality standards and provide support.

“Illegal mining is one of the biggest setbacks to our sector’s growth. It undermines government efforts to ensure that minerals are properly processed before being sold. We are working on formalization programs to educate and integrate these miners into the legal system,” he said.

Chikoti said that the Ministry of Mining has been engaging stakeholders, including large-scale mining companies, to encourage responsible mining practices and investment in local processing facilities.

In a separate interview, Sovereign Services Managing Director Frank Eagar expressed support to the government’s push for value addition.

He said his company, which is developing the Kasiya Rutile-Graphite Project, believes that local processing will be a game-changer for the economy.

“Sovereign Metals sees great potential in developing value-added industries around our Kasiya Rutile-Graphite Project. Processing minerals within Malawi will not only create jobs but also maximize the revenue that stays in the country,” he said.

Eagar explained that once a mining licence is granted, his company will commit to align with national beneficiation goals. He hailed government support so far, particularly in processing approvals and easing bureaucratic problems through Technical Working Groups, saying it has been instrumental in facilitating Kasiya exploration activities.

Eagar said: “However, the lack of accredited laboratories for mineral sample testing, limited incentives such as tax holidays or waivers, and the country's ongoing foreign exchange constraints affecting fund repatriation may discourage investors,”

Eagar warned.  “Our current role is focused on exploration, but once we transition into mining, we expect value addition to naturally attract industries that use rutile and graphite. This could spur local industrialization and enhance the global competitiveness of Malawi’s mining sector.”

As Malawi continues to develop its mining sector, the focus remains on ensuring that mineral wealth translates into tangible economic benefits. By equipping miners with skills, providing financial support, and enforcing cooperative structures, the government is positioning the sector for sustainable growth.