Mining & Trade News

Stakeholders in the extractive sector say listing of both medium and large-scale mining companies on the Malawi Stock Exchange (MSE) can bring a positive impact to the country’s economy.

In an interview with Mining and Trade Review, Mining Expert Ignatius Kamwanje said listing the companies on MSE can bring ample benefits including generating foreign exchange.

Kamwanje said: “Registering companies on MSE will have economic impacts among them being that the profits will be shared locally which is to enhance money circulation hence opening up some businesses by local shareholders, the company portfolio shall also be strengthened attracting more people to invest in shares.

“Companies may be willing to register in stock exchange but that is subject to signing agreements with the government.” “It is hoped that government will provide flexible conditions or incentives otherwise it is not attractive for foreign companies to get listed locally.”

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid also said registering the companies on local stock exchange could benefit Malawi in areas of revenue generation, local ownership, accountability and transparency and; growing the sector.

Rashid said: “Registering a mining company on a local stock exchange could have a very significant contribution to the economy.”

“The impacts include: increase in local ownership and wealth creation; development of capital markets in Malawi; revenue generation and growth of the economy and; transparency and accountability due to the reporting requirements to shareholders.”

“The listing of mining companies on the local stock exchange though risky has a potential of growing the mining sector in Malawi as this would remove the mistrust and confusion that had existed for a long time on how Malawi benefits from mining.”

He explained that some of the multinational mining companies would register on the local stock exchange for purposes of collaboration if well regulated, a development he described as a breakthrough for local involvement.

  Coordinator for Chamber of Mines and Energy Grain Malunga said listing the companies on MSE will enable the local communities to purchase shares.

“Mining companies will one day register with local stock exchange if they pass the criteria required to register. Stock exchange is a vehicle for making money through buying of shares,” he said.

However, Mining Expert and Seasoned Geologist John Nkhoma said listing the mining companies on MSE can only be done once they kick-start the actual mining.

“I think this can only be done once the companies are in operation, however note that most of the other funding comes from external inputs and also that equipment can be purchased in forex not Malawi Kwacha,” he said.

In a virtual mining conference on mining investment with Malawians in diaspora, the Ministry of Mining Principal Secretary Joseph Mkandawire disclosed that all mining companies have agreed to be listed on MSE once they finalize Mining Development Agreements (MDA).

The move also excited Chief Operating Officer for MSE, Kalline Kondowe who lauded the development saying it will increase investment platforms on the local market. Meanwhile, no medium or large scale mining companies is registered on MSE. 

A grouping of civil society organisations operating in Malawi’s extractives sector the Natural Resources Justice Network (NRJN) has asked the Malawi Government to amend the Mines and Minerals Act 2023 to remove the Retention License and reduce the duration of an Exploration License.

The Mines and Minerals Act 2023 provides resource firms with a Reconnaissance License for a duration of one year with a possibility of extension; Exploration License of three years extendable thrice adding up to nine years in total and; Retention License of five years.

But in an interview with Mining and Trade Review Programs Coordinator for NRJN Joy Chabwera said including Retention and longer duration of Exploration Licenses is retrogressive and against the country’s economic agenda as it results in the nation taking a very long time to start realizing the benefits from the mines.

He said: “The 16 years’ period combining Reconnaissance, Retention and Exploration licenses is against both the Agriculture, Tourism and Mining (ATM) and Malawi 2063 Economic Agenda which has featured highly mining as one of its pillars for industrialization. With that long period, when are we going to start mining?”

“The Retention License is retrogressive; Members of Parliament must remove it.”

“Let us look at 2030 agenda, it is just five years from now, and the agenda talks much about energy transition. By that time, we were supposed to have tangible progress.”

“At the same time, the government needs to manage people’s expectations. Many communities do not know at what stage the projects are but what they know is that very soon they will start benefiting from the project and with the long exploration and retention license duraction, the communities will start suspecting the companies of stealing their resources.”

Chabwera expressed concern that despite including the suggestions in the CSO input when the law was being amended from the 1981 to 2019 and later to 2023, they were ignored and did not have enough time to engage responsible MPs as the process was done within a short period.

He said it is imperative for Malawi to borrow a leaf from other African countries who are progressing in mining activities with no retention license and the shortest exploration period including Ghana and Bostswana.

“Ghana did away with Retention License and of course Botswana has a Retention License but it is conditional and it is only for three years. When we look at their exploration license it is just three years and renewed once for another adding up to six years, and plus retention it totals 9 years.”

“It has strict conditions and requirements for a company to qualify to be granted Retention License hence there are only very few that qualify.”

“As we speak Malawi was supposed to be a country that encourages mining not exploration because with that long period it is almost impossible for Malawi to start realizing benefits from the sector.”

Commenting on the development, Mining Expert Ignatius Kamwanje concurred with Chabwera saying the duration is too long for a serious investor and needs to be shortened understanding that the nation has put much interest in mining sector. Kamwanje said the prolonged duration results in the Exploration Licence (EL) staying idle as it gives room for more renewals.

“Reconnaissance, EL and Retention combined, indeed 16 years is too much. I would propose 10. Why? If an investor has done nothing during the first years of EL, there is no need to renew.”

“Our Act seems flexible and soft on this and was supposed to be looked into with sober minds.”

In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga agreed with Kamwanje that EL needs to be granted for seven years but proposed for strict monitoring and reporting. Malunga said: “EPL should be issued for 7 years after and a bankable pre-feasibility study should be a conducted.”

“Strict monitoring and reporting should be abided by. Retention license should be allowed on the condition that another company interested in the tenement should be allowed to enter into joint venture agreement to continue with the project.”

ASX-listed Lotus Resources, which is advancing preparations to resume mining at Kayelekera Uranium Mine in Karonga, has reported a number of initiatives that it has implemented in 2024 to support the local community in the Kayelekera area as part of its Corporate Social Responsibility (CSR) programme.

    In its Sustainability Report for 2024, Lotus Non-Executive Director and Environmental, Sustainability and Governance (ESG) Committee Chair Dixie Marshall explains that Lotus remains committed to continual improvement of its sustainability performance to ensure that it minimises environmental impacts, supports local communities, and increases the efficiency and safety of its operations.

    Marshall says: “People are our priority. We have focused on supporting the local communities surrounding the Kayelekera mine with health, education, and reforestation. Some of our initiatives at Kayelekera included infrastructure maintenance and repairs to the Sere Bridge, Juma Village access road, Kayelekera football pitch, and walls and floors of the Kayelekera Health Centre and medical staff accommodation.”

   “Supporting our local communities with work and business opportunities is a priority for Lotus. During the reporting period, we are pleased to report that we engaged 369 local contractors to undertake short term contract work at Kayelekera. This is a significant increase compared to Financial Year 2023.”

Community Investment in Kayelekera   

  • Spraying mosquito habitat to reduce the spread of Malaria

The report reads that in order to reduce the number of malaria cases, Lotus performed an annual mosquito abatement program, which involved two spraying campaigns covering Kayelekera, Simfukwe, Juma, and Chiteka villages. The first campaign took place from April 16th to 24th 2024, and encompassed 180 households, helping to improve the wellbeing of the community surrounding Kayelekera Mine.

• Sere Bridge Maintenance

Lotus conducted repairs and maintenance work on the Sere Bridge, which was damaged due to large volumes of rainwater during the wet season. The bridge provides the community and Lotus safe passage across the perennial Sere River.   Lotus engaged two contractors and 17 locals to perform maintenance work, which included reinforcing the concrete on damaged parts of the bridge and erecting gabion baskets to strengthen the bridge against erosion.

Guest of Honour to the Kayelekera Secondary School 2024 Graduation ceremony

 Lotus has been supporting Kayelekera Secondary School through the provision of laboratory materials, teaching aids and facilitating site tours.

  To show their appreciation of the support, Lotus was invited as a Guest of Honour to the Kayelekera Secondary School 2024 Graduation ceremony for the final year students to present the certificates to the best female and male students. Kayelekera community infrastructure maintenance and repairs

The report explains that the Kayelekera team supports the community by using its heavy machinery to repair damaged roads following the wet season rains. In 2024, Lotus graded the roads into Juma and Chiteka to restore access to the schools. Lotus also used its machinery to resurface the Kayelekera Village football pitch to improve the playing surface for local competitions. The Company conducted maintenance at the Kayelekera Health Centre and at the homes of the medical staff, which involved repairing cracks in floors and walls, replacing windows and painting.

 Job opportunities for local community

In August 2024, Lotus engaged 53 people from Kayelekera surrounding communities to undertake a maintenance and stability program at Kayelekera. The work involved pulling down old administration and ablution buildings and leveling and compacting the site, maintenance of the western drain, maintenance of RWP2-sluice drain road and installing gabion baskets on a section affected by ground movement. 

 Marshall explains: “This is one of the largest works programmes Lotus has been able to offer the community since it took ownership of the Project. The work programme went for two months.”

“We actively encouraged women to come work on the project and we successfully employed 10 women. Work opportunities are limited around Kayelekera.”

She reports that Senior Group Village Headman Kayelekera and Mwenechilanga Village Development Committee (for Kayelekera, Simfukwe and Juma) visited Kayelekera mine site to show their appreciation for the jobs created by the project.

In 2024, Lotus also continued to support the community development programs at Kayelekera which it started in the Financial Year 2023:

Health In the health sector the Company undertook the following initiatives:

• Maintained potable water using a solar-powered pump for the Kayelekera Health Centre, Kayuni Primary School, and surrounding communities

• Provided solar power and ongoing maintenance to the Kayelekera Health Centre

• Provided an ambulance to care and transport emergency patients to the Kayelekera Health Centre or Karonga District Hospital and

• Maintained the water supply and power supply at the Wiliro Health Clinic

Education

In education, Lotus

• Provided financial support for tuition fees, school uniforms, and books for 10 students from the St Monica Secondary School in Wiliro

• Continued to sponsor eaght teachers at Kayuni and Juma Primary Schools and

• Provided mock exams and laboratory equipment for Kayuni Primary School students sitting their high school entrance exam

“Lotus aspires to be a responsible uranium producer, building strong local communities, a safe and healthy work environment and making a positive contribution to a carbon free future,” Marshall sums up all.

ASX-listed Globe Metals & Mining says it has signed a non-binding term sheet agreement with South Africa’s Industrial Development Corporation (IDC) for a US$10-million convertible loan available partly in South African rand (ZAR) and partly in US Dollar, marking a significant step towards the early development of the Kanyika Niobium Project in Malawi.

Globe’s CEO Paul Smith announced this in a statement saying the US$10-million loan constitutes 22% of the US$46-million required for the project’s initial development phase which will be supplemented by $15 million in senior debt financing from Ecobank Malawi, announced earlier this year, bringing the total funding secured so far to 54%.

He explains that the funding will contribute to essential project activities, including an updated bankable feasibility study (BFS), detailed front-end engineering design (FEED) and specific early works required for the project’s advancement.

 “The planned funding from IDC allows us to execute crucial components of Kanyika’s development plan, bringing us closer to the project’s Phase 1 development, anticipated to commence in the first half of 2025,” says Smith.

Smith highlights that the term sheet gives IDC the right to convert the loan into equity, securing up to a 25% stake in Globe’s Malawian subsidiary (Project HoldCo) and up to a 19.9% equity in Globe itself.

“This adds credibility to the Kanyika Niobium Project, while reducing risks and attracting further strategic investors,” he says.

Smith says in order to facilitate the funding process, the loan will be drawn in four tranches, with each tranche subject to specific conditions. Tranche one will depend on customary drawdown conditions, including the registration of security while tranche two will require acceptance of the BFS report by the Steering Committee. Trenches three and four will hinge on the approval of the Resettlement Management Plan by Malawi’s Ministry of Lands and before IDC’s funding is drawn, Globe plans to use bridging finance to initiate key pre-development activities, with the intention of repaying the bridging funds once the loan is fully accessible”.

He explains that Globe’s partnership with IDC is seen as a significant milestone for Malawi’s mining sector as it is promoting cross-border collaboration and advancing the sustainable development of niobium, a critical mineral used in high-performance materials.

“With IDC’s support, we are not just securing financial resources but we are building credibility that will draw more investors and set a benchmark for responsible mining practices in the region,” says Smith.

He says the agreement also demonstrates Malawi’s growing appeal as an investment destination for critical minerals.

As Globe advances the Kanyika Niobium Project, the country is set to benefit from increased investor confidence and the development of a sustainable mining sector.

With Phase 1 activities slated to begin in 2025, the project is expected to generate economic opportunities, including job creation and infrastructure development.

The Kanyika Niobium Project (KNP) this year became the first mining project in Malawi’s history to comply and implement the Community Development Agreement (CDA) since the new Mines and Minerals Act- 2023 came into being.

This follows the signing of the long-awaited CDA between the Kanyika Qualified communities (in Mzimba and Kasungu) and the company-Globe Metals & Mining.

Section 169 subsection 1 of the Act stipulates that “a holder of a large-scale mining licence shall assist in the development of qualified communities affected by its operations to promote sustainable development, enhance the general welfare of the quality of life of the inhabitants and shall recognise and respect the rights, customs and traditions of the local communities that are consistent with the constitution.”

Subsection 3 adds that no holder of large-scale mining licence shall proceed to do commercial production before the ratification of the CDA by the qualified affected community. Globe enjoys good relations with the local community of Kanyika, and this relationship has, among other things, seen the company donating learning materials such as desks and chairs to local schools.

Globe, which has a mining licence for the Kanyika multicommodity deposit, also signed a Mine Development Agreement with the Malawi Government. The Company also announced plans to produce high-grade and Tantalum products in Malawi at a Lilongwe-based refinery.

By producing Niobium and Tantalum oxides within Malawi for export to world markets the Kanyika Mine will add significantly to the country’s foreign exchange earnings, boosting the Balance of Payments account and raising the National GDP.

The move by Globe follows extensive research and test-work over the past many months, reviewing and fine-tuning refining technologies to optimise engineering designs for the mining and concentrate recovery processes which are aimed at maximising value from the Kanyika orebody.

By changing the refining technology to a benign process based on the use of chlorine - which is environmentally sustainable and cost-effective - Globe will be able to produce high purity products that attract premium prices from international buyers in the speciality metals markets.

The benign chlorination technology was perfected by Globe’s research partners, and its use in Malawi to produce high-purity metal oxides will replace the original plan for Hydrofluoric Acid (HF) recovery process at a refinery to be located in the United Arab Emirates.

Local Artisanal and Small-scale Miners (ASM) have lamented that some Exploration License (EL) holders are denying them consent to carry out small scale mining operations within their tenements despite the ASMs getting proper documentation from the Ministry of Mining saying it is fueling illegal mining in the country.

In an interview with Mining and Trade Review Rebecca Khembo, a small-scale miner in Rumphi district said despite acquiring preliminary documents from the Department of Mines, she is failing to be granted a mining license due to delays to be given a consent by EL holders.

Khembo said after being instructed by the Department to get a consent letter from the EL holders, she has been trying to engage the companies but nothing has materialised.

She said: “We have been engaging the companies but the response is as usual; ‘let us talk to the director’ and if we follow up nothing happens.”

“Later on what we hear is that the company went to the Mines Department to threaten them on why they are about to give us a license yet they are exploring for metallic minerals and we are after gemstones.

” Khembo said the development is a setback to the ASMs who plan to have licenses and form cooperatives that will assist to transform lives of many Malawians.

In a separate interview, Ian Mbewe, smallscale miner from Mzimba district concurred with Khembo saying the issue  is an obstacle for them to grow their mining business.

Mbewe said: “Imagine one company has over three licenses and one license is about 300 square kilometers which means they have taken over all the land and nothing has been left out for us. If they keep denying us consent where will we mine as ASMs?”

“It is also unfortunate seeing some companies holding licences for metallic minerals mining gemstones illegally. We are wondering; are they really here to develop the sector or just to kill the ASM?”

Programs Coordinator for Natural Resources Justice Network Joy Chabwera, however, said the legal framework is the main problem for the development.

Chabwera said: “The main issue is that EL has exclusive right either to grant consent to ASM or not. But our legal framework does not provide the mandate to Government to instruct the EPL holder to give consent to ASM.”

“Most of the EL holders, who have kept their land idle especially in the northern region, have just acquired the license and they are using it for reference but they are not going to mine.”

“That is why even the issue of having a Retention License does not make sense. When you calculate EL plus Retention License, it is giving the licence holders about 16 years, and I do not expect these companies to give a go-ahead to ASMs to mine gemstones within these years,” said Chabwera.

Chabwera, therefore, proposed for amendment of the law to remove Retention License as well as reduce the number of years for holding EL from the stipulated five years. 

ASX-listed resources group Sovereign Metals says preliminary test results for graphite concentrate produced from its Kasiya Rutile-Graphite Project in Lilongwe have confirmed the suitability of the graphite for use in traditional refractory materials.

These tests, conducted by an independent consultancy ProGraphite GmbH in Germany showed the potential for Kasiya’s graphite to meet global demand in this industrial sector which accounts for 24% of global graphite demand.

Sovereign Metals MD Frank Eagar explains in a statement that the initial independent tests confirm that Kasiya’s coarse flake graphite (larger than 180 microns) has excellent oxidation resistance, with no oxidation occurring below 400°C and a mass loss of only 6.4% after four hours at 650°C.

He says this equates to a very low oxidation rate of just 1.6% per hour, making it suitable for applications in refractory linings used in high-temperature environments such as furnaces, kilns, and crucibles. Furthermore, Kasiya’s graphite boasts low sulphur levels (<0.02%), which enhances its appeal for refractory use by reducing the risk of corrosion and chemical instability.

"High resistance to oxidation and low levels of sulphur are two key attributes required to produce a premium graphite product for traditional refractory and foundry applications. Combining these attributes with the >50% large flakes of the Kasiya resource provides Sovereign with multiple marketing options," Eagar says.

Specifically, graphite is used to increase the effectiveness of the final refractory product by increasing thermal conductivity for efficient heat transfer, decreasing thermal gradient between the hot and cold faces of the product thereby reducing expansion, increasing the resistance to thermal shock which would otherwise lead to cracking or breakage of the refractory, low thermal expansion, reducing the ricks of structural damage and increasing the working life of the product.

Kasiya’s graphite is not just limited to the refractory market as previous studies have confirmed that the material can also produce high-quality anode materials for batteries, particularly for electric vehicles (EVs).

“This dual application of refractories and batteries provides Sovereign Metals with flexibility in securing offtake agreements and diversifying its supply chains,” he says.

Eagar reports that the company’s evaluation of coarse flake graphite for traditional applications will continue alongside optimization work for fine flake graphite. The goal is to generate comprehensive data that will support discussions with potential off-takers and position Kasiya as a competitive player in multiple sectors.

The findings come at a critical time as China, the world’s leading graphite producer that dominates the market by accounting for 75% of global flake graphite production and 96% of spherical graphite used in battery anodes, plans to tighten export controls on graphite and titanium alloys starting in December 2024.

"The reported restrictions further highlight the globally and geopolitically strategic nature of the Kasiya Project, which aims to become the world’s largest producer of high-grade titanium feedstock in the form of rutile and natural flake graphite," Eagar says.

As global markets seek to reduce reliance on Chinese exports, Kasiya’s development could play a key role in stabilizing supply chains while positioning Malawi as a significant player in the critical minerals industry.

Jenala Mining Cooperative, based in Thondwe, Zomba, is making advances in gold mining after acquiring small-scale mining licenses in September 2024.

In an interview, the cooperative’s General Secretary, Ben Makauli said the cooperative, which began operations informally in November 2023, was founded by a group of locals who discovered gold deposits in the vicinity of Jenala and Milepa trading centers.

Makauli said the cooperative’s journey has not been without serbacks as in May 2024, law enforcement officers confiscated their tools and equipment while labeling their activities illegal.

He said this setback led members to consult government mining officials, who provided guidance on the legal framework for mining.

“By May 5, we had organized our first official meeting, paving the way for our registration as a cooperative. After months of paperwork and consultations, our efforts bore fruits with the issuance of a license that granted us six hectares of mining land,” he explained.

Makauli said gold extraction at Jenala has evolved from manual to more advanced techniques. Initially, miners used basic tools like hoes, picks, and shovels to excavate topsoil, yielding up to three kilograms of gold per day.

“As these reserves depleted, we adopted drilling and crushing technologies, utilizing jackhammers, hammer mills, and jaw crushers to extract gold from weathered rock formations,” said Makauli.

Makauli explained that despite these advancements, production has dropped to around 15 grams per day due to financial constraints and limited access to modern equipment.  

“The cooperative struggles to secure funding for essential resources such as fuel, additional manpower, and advanced mining equipment,” said Makauli.

Makauli emphasized the need for government support, particularly in accessing loans, to enable the cooperative to scale up production as plans to drill a borehole for clean drinking water and construct proper sanitation facilities are also on hold due to a lack of funds.  

Despite these obstacles, Makauli highlighted that the cooperative has significantly impacted the local community as gold is able to give them income for survival in light of maize scarcity.

“People now have money to buy food, pay school fees, and meet other needs.” said Makauli.

He also said that the activity has reduced vices like excessive drinking in the area. “Many people are now busy mining gold to provide for their families instead of wasting time drinking.”

This story of determination and community collaboration emphasizes the potential of small-scale mining in driving economic development and transforming lives in Malawi. For Jenala, the gold beneath the soil is more than a resource, it is a lifeline for the people of Thondwe.

Mineral sector experts are forecasting a vibrant Malawi mineral sector in 2025 and beyond following landmark developments in 2024, which have unlocked growth opportunities for the potential sector.

During the year 2024, the Malawi Government signed three Mining Development Agreements (MDAs) for Kayelekera Uranium Mining in Karonga with ASX-listed Lotus Resources, Kanyika Niobium Mining Project in Mzimba with ASX-listed Globe Metals & Mining and Songwe Hill Rare Earth Mining Project in Phalombe with UK firm Mkango Resources.

Globe Metals & Mining also signed a Community Development Agreement (CDA) with the communities in Mzimba and Kasungu, who are close to the mine as stipulated in the Mines and Minerals Act 2023.

During the year, the Ministry of Mining also facilitated the establishment and operationalization of the Minerals and Mining Regulatory Authority in order to bring sanity in the sector.

Mining Expert and Consulting Geoscientist Ignatius Kamwanje applauded the signing of the MDAs and the Kanyika CDAs saying they manifest political will and willingness to develop large scale mines on the part of government.

Kamwanje said: “2024 sector performance has somewhat been good. To the sector, this is a tremendous and significant development. One aspect which l always advocate for is political will.”

“This means there is a strong political will by the President, Ministers and technocrats and it manifests itself.”

“The sector will contribute significantly to Gross Domestic Product (GDP), employment, tax and royalty remittances, supply chain outlets and infrastructure development within a 3-year period because the signing of these documents means the mines will ramp up operations soon.”

He, however, said though the sector registered some headways this year, the authorities still needs to look into some other aspects.

Kamwanje said: “These include formalization of ASM fully, mining regulations not adopted and devised fully, and the role played by Mining Authority needs a full sensitization campaign through different media outlets for people to understand.”

“Government should also speed up the process of revoking licenses that are staying idle and also monitor exploration activities happening for each Exploration License (EL).”

“My advice is to the Mining Authority, Mines Department and Malawi Revenue Authority (MRA) is to enforce measures and policies to ensure compliance as a country.”

Kamwanje also advised the government to speed up processes of signing more MDAs and CDAs so that Malawi has many mining companies in operation before 2030.

He also tipped the Ministry to collaborate with the Ministry of Trade to facilitate organization of mining Indabas, mining expos, conferences, gallery exhibitions for many Malawians to appreciate the progress made in the mining sector and the role played by the government.

Coordinator for Chamber of Mines and Energy Grain Malunga said though the sector registered recommendable moves, the year started with difficulties that resulted in delays in finalizing MDAs.

Malunga said inconsistence and poor understanding of benefit sharing led to the delays of the MDAs that would been signed in two weeks but yet took two years to be finalized.

Malunga explained: “In 2024, the Mining Sector started with difficulties in negotiating mining agreements. Inconsistence in the presence of the negotiating team and poor understanding of benefit sharing ratios led to delays and frustration on the part of the negotiating parties.”

“Outsourcing of external help by the Government contributed more delays in the process until the Presidential Delivery Unit (PDU) intervened.”

“What failed in two years was concluded within two weeks. Very impressive on the part of PDU.”

Malunga said finalization of the MDAs encouraged companies including Lotus Resources to immediately mobilize financing for recommissioning works at Kayelekera.

He said the development has pulled back production restart to early 3rd Quarter from last quarter.

“Sovereign Metals, Lindian Resources and Globe Metals have made good progress in negotiating for development capital as well. Outlook for economic recovery in 2026 looks good. Government should continue supporting the projects in speeding up permits and approvals for capital equipment and raw materials,” he explained.

 Seasoned Geologist and Mining Expert John Nkhoma said he expects more to be done after signing of the MDAs.

Nkhoma said: “There have indeed been some developments in the sector. However, a lot have to be done for instance, in the case of the regulatory authority, it has employed a Director General before constituting a board and this did not go through the parliamentary committee responsible for such recruitments.”

“We still have to see the developments on the ground after signing of MDAs. All in all, I think there are positive developments, and we look forward to the companies starting the actual mining.”

Head of Mining Engineering at Malawi University of Business and Applied Sciences (MUBAS) Joshua Chisambi said what the Malawi Government has accomplished in the year 2024 represents a significant step forward for Malawi’s mining sector.

Chisambi said the milestones demonstrate the government’s commitment to formalizing and regulating the sector, which is critical for attracting investors, ensuring equitable benefit-sharing, and mitigating environmental and social risks.

He said: “As an academic and practitioner, I see these achievements as a foundation for a more structured and transparent mining industry.”

“The MDAs provide clarity on fiscal terms and responsibilities for companies, while the CDAs ensure that local communities share in the benefits of mining projects.”

“The establishment of the Regulatory Authority enhances oversight, helping to address issues such as illegal mining and unregulated activities.”

Chisambi, however, explained that even though the sector’s future looks promising, there is still a room for some improvements.

He said: “The strides made in governance and policy are commendable, but the translation of these frameworks into tangible benefits such as increased employment, local economic growth, and infrastructure development requires more time and effort.”

“The slow pace of large-scale project implementation and occasional delays in permitting processes remain challenges.”

He further advised the Government to ensure that the newly established Authority is adequately funded and staffed with skilled personnel to fulfil its mandate effectively.  

Chisambi also tipped the Government to expedite policy implementation; promote local content and; community engagement.   Meanwhile, the country’s mining sector still contributes a staggering 1% to Gross Domestic Product (GDP).

ASX-listed Sovereign Metals has announced that it has successfully completed backfilling of a test pit at its Kasiya Rutile-Graphite Project in Lilongwe, Malawi, marking a significant milestone in its Pilot Mining and Land Rehabilitation Program.

In a statement, Sovereign Metals MD Frank Eagar explains that this achievement sets the stage for on-site soil remediation and land rehabilitation activities, aimed at ensuring sustainable farming post-mining operations.

“The successful backfilling of the test pit has confirmed our understanding of the Kasiya orebody and provides valuable data for our Optimisation Study. Now we have moved on to rehabilitation, demonstrating to local communities how we will progressively mine, backfill and rehabilitate land during operations,” he says.

Eager also says that the test pit, in which work involved mining 170,000 cubic meters of material using a conventional excavator fleet, was backfilled to its original ground level in less than two months, which made it possible for the farmers to return to their land.

“The successful return of farmers to their land within such a short space of time and without missing a single planting season after mining and backfilling will build on our positive community relationships and demonstrates the company’s commitment to minimizing disruptions to local livelihoods.” Eagar says.

 He explains that the farmers will benefit directly from Sovereign’s conservation farming initiatives, as the strategy involves a detailed five-step process in agronomic principles, with a focus on promoting sustainable farming practices.

“Step one began with the application of locally sourced dolomitic lime to improve the naturally low pH levels of the soil. This was followed by step two which was augmenting the mined area with organic carbon and essential nutrients using biochar and fertilizers, including potash, phosphate, and nitrogen blends. In step three, Lime, biochar, and fertilizers were then incorporated into the soil through grading, ripping, and dicing using locally sourced farming equipment, ensuring the land is level and safe for farming,” explains Eager.

He further highlights that for the fourth step, the company planted rehabilitation crops to maximize the benefits of the summer rainfall. Giant bamboo was introduced in blocks to enhance soil carbon and bioactivity, while maize and other cover crops were intercropped in formalized farm blocks to provide immediate farming opportunities for local communities.

He says for the last step, Sovereign will monitor soil remediation, crop yields, and plant growth, working closely with local farmers to improve results through conservation farming techniques, composting operations, and testing new seed varieties. An indigenous, fruit, and farming nursery is also being established as part of this initiative, serving as a live demonstration of rehabilitation and the timely return of land to pre-mining use.

The completion of the backfill and ongoing land rehabilitation at the Kasiya Project marks a key step in Sovereign Metals’ Pilot Program. These efforts aim to balance mining with sustainable land use and the results will help show how well such approaches can work for communities and the environment in Malawi.