Mining & Trade News

Government has commended Sovereign Services for its commitment to responsible mining practices through the land rehabilitation efforts at its Kasiya Rutile Project exploration site.

During a recent visit to the Sovereign rehabilitation site, members of the Lilongwe District Council Special Planning Area Taskforce for the Kasiya Rutile Project observed firsthand the successful restoration of land previously used for a mining and rehabilitation trial.

During the tour, Deputy Commissioner for Physical Planning in the Ministry of Lands and a member of the taskforce, Phillimon Mkwezalamba, described the outcome as a benchmark for responsible resource development in Malawi as it transitioned from an open excavation pit back to productive agricultural land.

"We first came here to appreciate the rehabilitation site when it was dug. This time around, we have come to appreciate what they have done to bring back the soil to its original form and plant the different crops that are here.  The first word is it's truly amazing. It's amazing because we didn't expect to see things like this. When we hear about mining, [the perception often] is that people just open the soils and then once they have taken whatever they want, they just go," Mr Mkwezalamba stated.

He further explained the comprehensive nature of Sovereign’s rehabilitation, noting: "They have told us about the processes, how they have done it to make sure that the soil is back to usable levels; we have really seen it to say that indeed this is possible that after doing the open-cast mining... they are able to bring the soils back and then put them to use."

Mr Mkwezalamba highlighted the various techniques employed, including the planting of diverse crops, intercropping, the use of vetiver grass and bamboo for soil conservation, and the application of soil science to restore carbon levels and productivity, potentially making the land "even more [productive] than how it was in the first place."

He further addressed the distinction between current activities and future potential mining, stating that mining activities do go through various stages, and that the area has been going through exploration activities, and Sovereign Services has not been given the licence to mine, but a licence to explore.

“So, it means there is no way we can say they are mining, because they are not given that licence yet,” he continued.

He confirmed that the work involves taking small samples for testing to determine mineral quantity and quality, not large-scale extraction for commercial sale. Addressing potential concerns among local communities regarding land use, Mr Mkwezalamba emphasised the temporary nature of land disruption during exploration and mining phases.

"I think what I can say is that there is need for continued engagement with the farmers and the locals. There should be massive sensitisation; it will just be for a short period of time.,” he explained to local people.

He also pointed to thriving maize and other crops as evidence of the land's restored potential, which could lead to "bumper harvests" and improved local livelihoods through modern farming practices learned during the rehabilitation process, undertaken collaboratively with local landowners.

And Director of Planning and Development at the Lilongwe District Council and another taskforce member, Willard Chirwa, echoed these positive sentiments, saying: "We came here when there was an excavation; today we came to see the restoration. I'm very much impressed with what has been done here. Because the land has been restored in its former glory, and we have seen the immense bumper yield come out of it."

Mr Chirwa viewed the rehabilitation as exceeding expectations and highlighted the socio-economic benefits.

"The harvest that will come from this land will by far exceed the original harvest because of the new technology that is applied," he observed.

He further noted the project's value as a model, stating: "As a council, we are happy because it will be like a training lab for other people. This will be the standard."

He added that if implemented fully, the project promises a bright future for the Khongoni area, Lilongwe District, and Malawi as a whole. Both officials acknowledged the government's role in overseeing the process, ensuring legal compliance regarding land use planning and compensation, and coordinating between Sovereign, local chiefs, council offices, and the communities to safeguard livelihoods and ensure fair treatment.

The Kasiya Rutile Deposit is poised to become a cornerstone of Malawi’s economic development, creating employment opportunities and generating significant revenue for the country.

Sovereign Services is working closely with the Government of Malawi and local communities to ensure the project delivers lasting benefits, reinforcing its role as a catalyst for sustainable growth and community empowerment.

Local Artisanal and Small-Scale Miners (ASM) have formed an umbrella body to fight the common problems they face in the industry.

Percy Maleta, Managing Director for Maleta Gems and Jewels and PL Treasurers said the initiative was mooted because the ASM subsector plays a crucial role in economic development of the country.

He said: "The Artisanal and Small-Scale Mining subsector plays a critical role in development yet faces numerous challenges, including inadequate policy support, unsafe working conditions and limited access to markets and mining. To address these issues, the Mining Federation for ASM is being established as a unified voice for miners in gemstones, gold, quarrying, ceramics and other areas."

Maleta appealed to mining associations to seriously consider joining the federation to enable it advocate for the pressing issues.

He said: "We invite all legitimate mining associations to join the federation, unite with a strong voice and work together to create a sustainable, thriving ASM subsector. It is high time we changed and believed that together, we can make a difference.”

"The federation aims to create a strong, collective voice for ASM operators, advocating for better policies and access to the resources necessary for growth and development."

"This initiative seeks to bring together all legitimate associations and stakeholders, ensuring that ASMs needs are heard at national level and international levels."

Currently, ASMs are facing both local and international hitches with the Ministry of Mining imposing a 21-day ban to export some of the minerals such as gemstones and gold which has been extended to two months.

The imposing of tariffs by the US government on goods from selected countries worldwide, including Malawi, has also taken a toll on their trade.

Key Focus Areas

1. Advocacy and Policy: Championing favourable policies and legal frameworks for ASM

2. Capacity Building: Providing training on mining techniques, safety and sustainability

3. Access to Finance and Technology: Facilitating partnerships to support financing and technological advancements

4. Environmental Sustainability: Promoting responsible mining practices to reduce environmental impact

5. Market Access: Connecting miners to legitimate buyers and ensuring fair trade.

6. Health and Safety: Improving working conditions through better safety standards

7. Gender Equality and Inclusivity: Ensuring equal opportunities for Women and marginalised groups in the industry.

ASX-listed Lindian Resources has announced that early-stage site works have officially commenced at the its flagship Kangankunde Rare Earths Project in Malawi’s Balaka District, which is a key milestone in the delivery of one of the world’s most significant undeveloped rare earth assets.

Lindian’s Chair of Project Delivery Zac Komur explained in a Press Statement that 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. Komur said these works form part of a broader acceleration strategy to de-risk Stage 1 construction and fast-track development.

“This proactive step underscores the new management team’s focused approach to accelerating the delivery of Stage 1 of the project.” he said.

Lindian has achieved a number of milestones in the preliminary development of Stage 1 of the Kangankunde Rare Earth Mining Project including:

• Pre-construction earth works have commenced to fast-track development timelines and reduce costs • Plant processing and product storage areas have been completed

• Equipment laydown and storage areas have been completed

• Management site offices and security yards have been completed

• Current access road works are significantly ahead of schedule and on track for    completion in Q2 2025.

Due to the current road works being substantially ahead of schedule the Company has been able to utilise equipment and skilled workers from the road crews which has presented considerable time and cost benefits to the Company in the commencement of these early work programs.

Komur explained that importantly, the Company has prioritised local workforce participation, with over 70% of current site-based roles filled by local workers. Skills development and training programs are being rolled out to expand the workforce as the project progresses, creating long-term economic opportunities in the region which will ultimately benefit the construction of Kangankunde.

Komur stated: “The initiation of these projects showcases Lindian’s dedication to progressing Kangankunde with both urgency and a fresh perspective. By assembling a seasoned construction team and collaborating with skilled contractors to optimise initial infrastructure development, we are establishing a strong groundwork for effective project execution.”

“Through collaboration, best practice efficiencies and on-site management the current road works are ahead of schedule allowing for the Company to utilise equipment and skilled personnel, delivering pre-development time and significant cost savings. This milestone signifies our commitment to providing lasting value for shareholders whilst fast-tracking the development of Kangankunde.”

Additionally, Lindian is actively collaborating with local communities to ensure that the project contributes positively to the region, offering employment opportunities and supporting local businesses. The Company is developing training programs to equip local workers with the necessary skills to participate in the project, thereby enhancing the socio-economic benefits for the surrounding areas.

“Lindian is dedicated to upholding high standards of safety and sustainability throughout the project lifecycle. The Kangankunde Rare Earths Project not only represents a significant opportunity for the Company but also holds the promise of playing a crucial role in the global supply chain of rare earth elements, which are essential for technologies critical to the clean energy shift,” said Komur.

This announcement reinforces Lindian Resources’ position as an aspiring leader in the critical minerals sector, driving forward the energy transition through sustainable development practices.

He stated: “The Company remains committed to maintaining transparency and open communication with all stakeholders as the project progresses. The management team is also prioritising environmental stewardship by implementing best practices to minimize the ecological impact of the development.”

“Lindian is committed to sustainable development practices, including:

• Adopting best-in-class environmental management standards

• Partnering with local businesses and suppliers

• Supporting socio-economic uplift for surrounding communities.”

Doing gemstone mining business is not for faint-hearted individuals as it takes patience and resilience for one to 'discover' the precious mineral ores for the market.

The process is hectic, labourious and energy-sapping as the miner must be physically and mentally fit.

The mining task is almost akin to the age-old phenomenon of treasure hunting, which is the pursuit of hidden wealth.

In Malawi, in which gemstone mining is not fully a well-structured industry in comparison to neighbouring countries such as Zambia, Mozambique and Tanzania, it is mainly done by small-scale artisanal miners and is mainly dominated by men who are naturally weather-battered.

But a young lady Jayne Chapomba has defied the odds. Jayne, who was raised in a mining family with her father a gemstone miner, followed her heart to take up mining as a business when she was just 19 years old.

Now at 32, It has paid off. Jayne has been one of successful artisanal miners and traders with her company registered under El Minerals Jayne Chapomba Gemstones.

"I have grown up seeing stones and having a father who always travelled to the mines. I took keen interest to know what really happens there. Seeing different types of stones every day motivated me to know the source and how it is done. I was always used to my father, who has been in the mining industry for 50 years now, how they do it. He could only explain but I wanted to see the exact thing. That is how I started."

Being a middle-aged lady and venturing into mining entrepreneurship, which is not only taxing but also least expected of a lady of that age, has made her grow a thick skin.

Said Chapomba: "Mining business has made me grow a lot as a person. I am very streetwise because of this business. It is not for faint-hearted individuals. I have gained a lot of knowledge over the years, among others, on how to mine. What is the season of mining? What are the signs that the land has precious stones buried underneath? I normally go to prospect before mining."

Commenting on what does mining entail, she says it involves extracting gems and precious stones from the earth for purposes of jewelry while others keep in their belief that some stones have healing powers to chase bad luck.

Chapomba says mining is rewarding and has enabled her acquire property which she would not have managed. She has also used earnings to invest in other business ventures.

Apart from her own socio-economic development, the former local tennis star says mining has helped her create job opportunities.

"Mining is very sophisticated indeed. I am currently operating alone. Of course. under my father's guidance. But I have 40 employees in Nsanje, Ntcheu six, Mzimba 12. There are also employees in Lilongwe and Balaka where I also operate."

The outspoken entrepreneur, who studied business and marketing, says she has big plans to invest more in mining. She is also studying gemology with a South African University. Chapomba urges those who are in the industry or aspirants to register their firms for them to benefit more.

ASX-listed Sovereign Metals says it has launched extensive geotechnical drilling programs at its Kasiya Rutile-Graphite Project in Central Malawi, marking a critical step towards the completion of a Definitive Feasibility Study (DFS) scheduled for the fourth quarter of 2025.

Sovereign MD Frank Eagar says the programs are currently underway at key infrastructure sites within the project area and are expected to conclude in the coming weeks.

He says: “The investigations are covering various infrastructure zones including the North and South mining areas, processing plants, the tailings storage facility (TSF), raw water storage dam, Kasiya substation, logistics routes such as the railway spur and access roads, and accommodation camps for both permanent and contract staff”.

Eagar highlights that these studies are being conducted under the supervision of the Sovereign-Rio Tinto Technical Committee, with input from international consultants and a dedicated in-house technical team.

Eagar explains that the work follows the completion of the Optimised Prefeasibility Study (OPFS), which was concluded in January 2025 and laid out the foundation for a large-scale, long-life mining operation.

“Following the completion of our Optimised Prefeasibility Study in January, DRA Global Limited and a number of tier one consultants have been appointed to advance the DFS in combination with our highly experienced owner’s team,” Eagar says.

He explains that the current geotechnical programs are focused on collecting critical data that will determine the best locations for key infrastructure while ensuring minimal environmental and social impact.

“Comprehensive data is being gathered from these field programs and will determine optimal locations for our key project infrastructure. We remain on track to complete a DFS in quarter four of 2025,” he says.

The geotechnical work is essential for understanding the physical properties of ground conditions that will host major infrastructure. A variety of investigative methods are being deployed at the site, including diamond core drilling, spiral augur drilling, trenching, pitting using excavators, cone penetration tests (CPTu), and Multi-channel Analysis of Surface Waves (MASW).

“In addition, ground geophysics using active seismic techniques and resistivity surveys are being applied to better understand subsurface conditions”, Eagar says.

Eagar further explains that the OPFS has already outlined a vision for a robust mining operation that will produce substantial volumes of natural rutile and graphite as the layout proposed in the study was determined after evaluating technical, environmental, and social factors, with a strong focus on minimizing the project’s footprint.

He emphasizes that the company’s planning remains centred on responsible development, saying “Our primary design objectives have always been to minimize environmental and social impact while keeping facilities as central and efficient as possible to the mine pits”.

In addition to the geotechnical investigations, the company is also progressing its 2024 infill drilling campaign, which aims to provide more accurate geological data. An updated mineral resource estimate is expected to be released in the second quarter of 2025, which will further strengthen the DFS.

Artisanal and Small-Scale Mining players had an audience with Minister of Trade and Industry Vitumbiko Mumba where, among others, they lodged a complaint about the government decision to extend an initial 21-day suspension of export of gemstones to two months now.

The meeting drew representatives from Nyasa Mining Cooperative, Percy Maleta, Women and Youth Mining Federation's Annie Kamanga, Perekezi ASM Consultants Chikomeni Manda and Gold Association of Malawi's Regan Donda.

Maleta, who is also MD for Maleta Gems and Jewels and PL Treasurers Limited said the Ministry of Trade is equally important in addressing the issue because the mining industry is all about trade.

"The meeting took place in Lilongwe at the Ministry of Industry and Trade. We met him because we believe his Ministry plays a crucial role to advance our mining business and besides, in as much we tend to lean more to the Ministry of Mining, ours is trade.”

Maleta commended the Minister of Trade for accommodating them to a round table discussion on short notice following prevailing hitches the miners have been subjected to following US President Donald Trump's decision to impose tariffs on goods from 145 countries worldwide, including Malawi.

The US President's decision was followed by another domestically-induced hurdle when the Minister of Mining Ken Zikhale Ng'oma imposed a 21-day suspension of gemstone and gold exports, allegedly to police illegal mining and exports.

This decision has negatively affected the miners as they cannot carry out trade activities for the minerals. They argue that blanket suspension was unfair to registered miners as it encourages illegal exports, thereby, denying government the much-needed revenue collection through tax and other related duties.

Maleta said the meeting was a breakthrough and provided an insight to the Minister on the challenges and hurdles they meet in course of their work as ASMs.

"The Ministry will start working on short term solutions while looking at and addressing the long term issues," he said.

On her part, Kamanga said the meeting was ground-breaking, saying: "The Minister of Trade and Industry responded favourably to the concerns raised. Officials acknowledged the significant contribution of ASM to the national economy and the urgent need to address the existing gaps.”

"The Ministry is committed to immediate, action-oriented follow up meetings within the month, aimed at reviewing export policy, establishing marketing linkages for ASM products, and enhancing coordination between trade and mining policy."

In an interview, Ministry of Trade Spokesperson Patrick Botha confirmed that it was a successful and cordial meeting as the Minister pledged to address the issues that the ASMs raised, which impacts revenue generation.

Botha said:"The meeting was basically a closed one aimed at appreciating issues in the artisanal mining, how they can grow by, among others, forming cooperatives or strengthening cooperatives, value addition such as gem-cutting and polishing, markets and protection against foreign infestation into the artisanal mining sector.”

"The Minister asked the participants to provide him with what they think would be practical solutions to their problems since they are the ones on the ground so government can take practical steps to address them."

"There will be another meeting where strategic direction on the issue will be given."

Malawi’s foreign exchange woes which have seen the United States Dollar fetching up to K5,000 on the black market while the official rate in dealer banks remains K1,700 are fueling gold smuggling, Mining & Trade Review has established.

Random interviews with gold dealers and some Artisanal and Small-scale Miners (ASMs), revealed that local gold dealers are preferring to sell their gold to business tycoons in neighboring countries such as Zambia and Mozambique, despite the Export Development Fund (EDF) offering attractive prices locally, because they prefer to trade in Dollar other than the Kwacha.

“The black market is very attractive because of the unstable exchange rate and small-scale miners prefer taking their gold to black market dealers whose prices are based on the Dollar exchange rate on the black market. The dealers export the gold to Mozambique and Zambia in order to sell in US Dollars,” said Chikomeni Manda, Managing Partner for Perekezi ASM Consulting.

In a separate interview, MD for Maleta Gems and Jewels Percy Maleta told Mining and Trade Review that there is a steady market for gold in Malawi with a good number of ASMs selling their gold to EDF.

“Besides EDF, there are other buyers in Lilongwe buying a lot of gold, they also offer attractive prices,” Maleta said.

Currently, gold is trading at an average US$94 per gram on the international market but RBM has been offering $225 per gram (about K390, 000).

But even at such a price, RBM is unable to attract many sellers on account of the volatile exchange rate with the Kwacha fairing badly on the parallel market.

Maleta suggested that in order to fetch more gold from ASMs, EDF needs to capacitate the ASMs by supporting them with equipment and skills.

“EDF should be more than a big vendor by working with cooperatives, capacitate them, and agree to buy output which is gold at agreed prices. It should borrow a leaf from most of the private dealers who go beyond just buying gold, and support ASMs with equipment and skills,” said Maleta.

ASX-listed Sovereign Metals has announced that rehabilitation of land at the test pit site mined during the pilot phase of its Kasiya rutile-graphite project in Lilongwe has made substantial progress.

Sovereign Metals MD and CEO Frank Eagar explained that soil remediation work under its pilot mining and land rehabilitation programme was concluded in December 2024 with landowners accessing the site between December 2024 and January 2025 to plant and cultivate crops without missing a planting season.

Sovereign continues to provide support and training to landowners to improve crop yields, including introducing conservation farming techniques, which have already resulted in a tripling of crop yields.

 “The successful return of farmers to their land within such a short time and without missing a single planting season after mining and backfilling 170,000m3 is an excellent outcome. This demonstration of responsible mining and land rehabilitation will build on our positive community relationships,” said Eagar

“The pilot phase of 90 farmers selected for our Conservation Farming programme has been increased to 350 for this season. Early indications are that the second season of this programme will exceed the 300% yield increases achieved in the pilot phase. The empirical data collected from these trials will feed directly into our Definitive Feasibility Study designs for mine closure and land rehabilitation.”

Rehabilitation crops, including giant bamboo, sun hemp, groundnuts and mung beans, are being tested alongside staple maize crops.

He said: “The rehabilitation programme successfully demonstrates how mined land can be quickly and efficiently returned to productive agriculture during future full-scale operations.”

“All soil remediation works as well as planting was done by hand with the use of a grader and tractor to prepare the soils. Sovereign appointed the local landowners to work with us in both the soil remediation and planting work, so that they were able to directly experience and learn about our rehabilitation work on their land.”

Sovereign is working closely with the landowners to ensure that the crops provide a good yield in 2025, while simultaneously testing a variety of rehabilitation crops. This includes the intercropping of giant bamboo with maize, which will be retained by the landowners.

“Sovereign is committed to ensuring that all mined-out land is appropriately rehabilitated to support sustainable farming practices after closure.”

Eagar explained that the soil remediation methods aim to revitalise the soils within two-to-three-years to ensure that land can be sustainably farmed in the long term. The remediation of soil to a depth of one metre from the surface will ensure the land can support  future commercial farming practices.

As part of the pilot phase, the company has constructed small rehabilitation demonstration pits that will be used to illustrate multiple and ongoing rehabilitation processes.

REHABILITATION APPROACH

The rehabilitation approach is based on agronomic principles, including promotion of sustainable farming practices and provision of various land uses after mining is finished. Rehabilitation is underway through a five-step process:

Step 1: Introduce Lime (Complete)

The soil remediation commenced with the application and incorporation of locally sourced dolomitic lime (calcium and calcium-magnesium-carbonate) to improve naturally low pH levels

. Step 2: Introduce Carbon and Basic Nutrients (Complete)

Sovereign augmented the mined area with organic carbon and basic nutrients. Tests included the application of biochar to provide carbon and fertiliser in the form of potash (MOP), phosphate (MAP) and a blend of nitrogen, potash and sulphur (NPK) 15:23:16).

Step 3: Grading, Ripping and Discing (Complete)

Lime, biochar, and fertiliser were incorporated into the soil through grading, ripping, and discing using graders and locally sourced farming equipment. This ensured that the land was level along with safe working conditions.  

Step 4: Planting of Rehabilitation Crops (In Progress)

Since December 2024, Sovereign has been planting rehabilitation crops to maximise the benefit of the coming summer rainfall. Giant bamboo has been introduced in 4 by 8 metre blocks, which will act as the primary crop to enhance carbon and bio-activity in the remediated soils. Maize and other cover crops have been intercropped between the giant bamboo within re-organised farm blocks.

Step 5: Monitoring and Evaluation (In Progress)

Sovereign continues to monitor soil remediation, plant growth and crop yields. As part of stakeholder engagement, the company is working with local farmers to improve results through conservation farming, composting operations, testing new seed varieties and establishing an indigenous fruit and farming nursery. This is serving as a live demonstration of rehabilitation and timely return of land to a pre-mining state. Results of an optimised pre-feasibility study that Sovereign completed in 2025 in conjunction with its strategic partner global mining giant Rio Tinto have shown that Kasiya is well positioned to become the lowest cost producer of both rutile and graphite, reconfirming Kasiya’s potential as leading global future supplier of strategic critical minerals outside of China. Kasiya hosts the world’s largest natural rutile deposit and second largest natural flake graphite deposit globally.

The World Bank says Malawi’s mining sector has great potential but needs urgent reforms to attract investment and boost the economy.

In its 2025 Malawi Economic Monitor Report, the Bank points out delays in finalizing Mining Development Agreements (MDAs) and issuing permits as major challenges in the sector warning that these slowdowns deter investors and stall sector growth.

“The government should engage independent legal experts to ensure mining contracts are fair and beneficial to the country. Mining agreements are complex, and delays in negotiations can result in lost investment opportunities,” the report reads.

The report observes that key institutions like the Ministry of Mining, the Geological Survey Department, the Malawi Revenue Authority, and the Malawi Mining Regulatory Authority (MMRA) are underfunded and understaffed.

“Enhanced coordination between government agencies is essential to streamline processes related to land tenure, construction permitting, and oversight. Without these reforms, investors will continue to face unnecessary bureaucratic problems that slow down project implementation,” the report states.

It says lack of accredited laboratories for mineral testing is another setback as without these facilities, the government struggles to verify the quality of mineral exports and administer taxes effectively.

The report also highlights infrastructure gaps, especially in energy and transportation as serious challenges. The Bank warns that Malawi’s reliance on hydroelectric power leaves mining operations vulnerable to drought-related shortages, while an outdated rail network forces companies to rely on expensive road transport.

“The mining sector is expected to need 60–100MW of power in the medium term and up to 160MW in the long term, but current capacity falls short. Meanwhile, the country's outdated rail network forces mining companies to rely heavily on costly and inefficient road transport, further driving up operational expenses,” the report reads.

Despite these challenges, the World Bank sees clear opportunities in the sector. The report highlights Malawi’s commitment to the Extractive Industries Transparency Initiative (EITI) as a positive step towards improving openness and accountability in resource revenue management.

“In the short term, this has set up a credible and effective platform for multi-stakeholder engagement that will help foster an inclusive dialogue around the development of the mining sector,” notes the report.

Additionally, it says the updated mining regulatory framework and capacitation of the MMRA are expected to create a more stable environment for investors while the Energy Transition Minerals (ETM) Roadmap will help the government articulate a long-term vision of  how mining can drive economic transformation.

“Well-designed regulations, developed through comprehensive consultation, are less likely to require frequent revisions, fostering the stable and predictable regulatory environment essential for building long-term confidence in the mining sector,” the report states.

Malawi has been striving to expand its mining sector as part of its broader economic diversification strategy. For years, the sector has remained underdeveloped, contributing less than 1% to the country’s GDP, despite the country being rich in minerals such as uranium, graphite, rare earth elements, and gold.