Mining & Trade News

It was in the morning of a Monday when I drove my daughter Victoria to Kasiya to write a Form 1 entrance examination for Atsikana Paulendo Private Secondary School. The examination was for three hours so after dropping her, I drove to the nearby Kasiya Trading Centre to spend the idle hours while waiting for her to finish writing her exam. I looked around for a place where I could sit down and enjoy my favourite coke. Lucky enough, I found one of the drinking joints open as the bar tender was just coming from where he had ordered some drinks. “You are welcome Sir, what are you having for a drink,” the bar tender welcomed me. I ordered the coke which was handed to me with an empty crate of beer to sit on.

As I took the first sip of my drink, a woman in her twenties approached the scene from the direction of the market. She looked very innocent and attractive to the eye. She was carrying a basket of groundnuts and was clad in a white T-shirt scribbled “chuma chili munthaka” on the chest and a Malawi Congress Party cloth (chitenje) decorated with the face of party leader Dr Lazarus Chakwera. She came straight to plead with me to buy her cooked groundnuts; Bwana ndiguleniko mtedza ophika ndipezeko yogulira ndiwo, dzulo sindinadye” meaning boss, buy from me cooked groundnuts. At least, I should have money to buy relish, I did not afford to have a meal yesterday.”

Her complaint touched my heart and I told her to give me K2,000 worth of the groundnuts. Her ordeal about skipping meals due to lack of money for relish prompted me to ask the lady about her life story. She told me her name is Tadala, a mother to two children who are in primary school. She is divorced having ran away from the father of her children because he used to beat up her up when he found that there was no food at home after returning drunk

“He used to be okay when he was jobless and we were depending on small- holder farming for survival. He just changed after finding a job as a labourer at the Ksiya mine. I could not survive his cruelty,” she explained.

She then asked me what I do for a living. I told her I write stories on mining and then I went into my car to get a copy of Mining & Trade Review to show her. I in- vited the bar tender to join me in eating the groundnuts and ordered a fanta for Tadala as a symbol of appreciating company while I enjoyed the nuts.

Kasiya Rutile Project is not yet in production

Tadala asked to go through the newspaper and I was startled when she seemed to scream after fluffing through the copy: “Eesh these mining companies are stealing our minerals here in Malawi and exporting in the name of samples for laboratory tests.

“Sovereign Metals came to Kasiya several years ago to start mining but Malawi and us citzens here are benefitting nothing.”

I explained to her that no exploration company is stealing minerals in Malawi in the name of samples. All samples exported for tests by these companies are inspected by security authorities at the country’s exit points and assessed to determine amount of royalty to be paid to government

On the part of Sovereign Metals, they do have a laboratory in Area 4, Lilongwe where they test samples from Kasiya. This process is mainly conducted by Malawians including women like her employed by the company

No sooner had I started responding to her than a group of four young men stormed the place. “Aunt Tadala, can I read the mining newspaper, I read on Facebook that the Americans have signed a deal with Sovereign Metals to steal our minerals. We, Malawians, are sleeping here. This is why the country is still poor despite having mineral resources.”

His statements prompted me to respond to both Tadala and the group of young men. I told them that Sovereign Metals is only in feasibility study stage for Kasiya. The Company made the initial discovery of the deposit in 2019, and it needs 10 years or more to conduct exploration, feasibility studies, environmental and social impact assessment studies, identify markets for the minerals, mobilise financing and sign a mining development agreement with the Malawi Government.”

Americans are not stealing minerals from Kasiya

But Rasta, do you remember what we read on Facebook; America has signed a deal with Sovereign Metals to buy the minerals with us Malawians getting nothing!” One of the young men said articulating to a colleague in dreadlocks.

This prompted me to order drinks for the young men so that I have ample time to explain to them the truth. Three of them ordered a Sapitwa while one preferred a Castel lager beer. I told them that the nonbinding offtake agreement that Sovereign Metals signed with an American Company Traxys for the latter to import graphite from Kasiya is a normal deal just like the other non-binding agreement that Sovereign has signed with a Japanese firm, Mitsui, to import rutile from the planned mine.

Resource firms sign these deals in advance to convince financiers to lend them money to develop their projects hence there is nothing like exploitation by the Americans in the deal.

“Why was the Malawi Government not present during the signing of the deals? This is a government of cowards who are scared of Trump (the US President) who want to get our minerals for a song. I read that an American Minister was present at the signing ceremony of this deal.” This was Rasta then talking.

I told them that Malawi Government officials do not have to be present at the signing of any deals signed by private companies. The role of government is mainly to ensure that the mining companies abide by the laws governing the mineral sector which spell out benefits for the country from the mineral resources. Sovereign will sign a Mining Development Agreement with the Malawi Government which will be based on the country’s laws.

A representative of the US Government was present at the signing ceremony of the deal with Troxys because the US Government is bankrolling Troxys and other companies to buy for it critical minerals such as graphite through its multibillion dollar Project Vault. In this regard, the US was present as a financier of Troxys.

With Malawi’s minerals sector increasingly attracting investors, many resource firms will be signing offtake agreements so it would be a drain of resources for our government officials to be following the private companies to where they will be signing these deals.

I also told them that the presence of Sovereign Services is the strong presence of Malawi in the deal because Sovereign Services is registered under Malawi Laws and operating under this country’s laws with Malawians running the company here in Lilongwe including a local Country Director.

“Okay, so what will happen when the mine opens in Kasiya in 2030 or thereafter. Will Malawi become rich and we, the locals here, become super rich? I am told there is big money in mining,” That was Tadala coming in now.

I responded to her that one or a few large scale mines cannot make all Malawians millionaires and billionaires overnight. Kasiya as the largest rutile deposit and the second largest flake graphite deposit in the world will indeed substantially contribute to the economy of Malawi in terms of raking in some forex, employment and business opportunities to locals etc but that will be far from transforming the economy

Malawi will need to invest in all productive sectors including mining, tourism, agriculture and manufacturing with its citizens committed to transform their lives economically.

But as I drove to pick Victoria after finishing writing her exam at Atsikana Paulendo, the young men I met just loitering around without nothing to do at the trading centre and poor Tadala stuck in my mind. I felt my next assignment would be to write an article urging authorities to consider these young men and women likeTadala in their programmes. It looks a possibility as Sovereign already onstucted a community centre in Malingunde.

Director General of the Mining and Minerals Regulatory Authority (MMRA) Mphatso Chikoti has welcomed the idea of forming a regional regulatory frameowrk for the minerals sector which was advocated for by African leaders at this year’s Investing in African Mining Indaba in South Africa.

Chikoti, however, said in an interview that it is important for the countries to align their mining legislation to the African Mining Vision in order to come up with the continental regulatory framework.

He said: “It is interesting that African countries have now realized that they were in a 'race to the bottom' as they were trying to be more attractive to foreign investors.

“African nations have different visions and aspirations, much as we are aware that we are guided by the African Mining Vision and Southern Africa Development Corporation (SADC) protocol on mining, which tries to harmonise mining policies in Africa.

Standardisation is a welcome development but countries should also be able to customise the laws to suit their social economic aspirations and development plans.

“Personally, I am usually inclined towards the need to capacitate Africans, and Malawians in this case, to invest in mining projects.”

South Africa’s Minister of Mineral and Petroleum Resources Gwede Mantashe said he feels foreign investors play games with African countries by jumping from one to another looking to invest in one with weaker regulations

Mantashe expressed the need to review the continent’s mineral regulatory framework so that those investors with capabilities must not move from one country to another

“They must not play us games. We must have a uniform framework that guides all of us in the continent. Then we are going to be able to compete everywhere we go,” said Mantashe.

However, Coordinator for Chamber of Mines and Energy, Grain Malunga said African Continent cannot have a uniform regulatory framework until they reform Africa's sovereignty status.

Malunga said the continent can have a template from which they can domesticate their mining legal framework saying the mineral endowment of the countries and priorities are different.

Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid, however, welcomed the discussions saying the concern raised is valid as multinational mining companies have often taken advantage of fragmented regulations across African countries.

Rashid said: “Investors frequently move between jurisdictions seeking weaker environmental standards, lower royalties, or less stringent transparency requirements, creating a “race to the bottom” where countries compete for investment by weakening protections for citizens and natural resources.”

“In principle, a harmonized African regulatory framework could help address this challenge and if countries agree on minimum standards for taxation, environmental protection, community rights, transparency, and local content, it would limit opportunities for investors to exploit regulatory differences.”

“Such coordination could also strengthen Africa’s bargaining power with multinational mining companies and help ensure that mineral resources contribute more effectively to sustainable development.”

He said: “In Malawi, for example, mining governance is guided by national laws such as the Mines and Minerals Act, environmental legislation, and policies on land, taxation, and investment.”

“These laws operate within Malawi’s constitutional framework, meaning replacing them with a single continental system could raise legal and sovereignty challenges.

“A more practical solution is regulatory harmonization rather than full uniformity and through regional and continental platforms like the African Union, governments could agree on shared principles and minimum standards for mining governance.”

“These could cover fiscal policies, environmental protection, contract transparency, community consultation, and benefit-sharing, while allowing each country to integrate them into its national legal framework.”

Rashid also explained that harmonizing regulations alone cannot fully prevent investors from playing countries against each other.

He said the success of any framework depends on strong institutions, political commitment, transparent contract negotiations, and active oversight from parliaments, civil society, and local communities.

Rashid said there is a need for Malawi and other African countries to prioritize strengthening governance systems, improving transparency in mining agreements, enforcing environmental and social safeguards, and ensuring communities benefit fairly from mineral extraction.

He said regional cooperation on mining standards can further reduce regulatory competition and promote responsible investment across the continent.

Malawi has witnessed foreign companies closing offices on the ground of global pandemics and other challenges but later settle in other countries within the region.

Sovereign Metals has announced an updated Mineral Resource Estimate (MRE) for its flagship Kasiya-Rutile Graphite Project in Lilongwe.

MD and CEO for Sovereign Metals Frank Eagar explains that the updated MRE will serve as the resource base for the Kasiya Definitive Feasibility Study (DFS) mine schedule, replacing the previous April 2023 MRE.

Combined Measured and Indicated rutile Resources have grown 38% to 1,652Mt, now representing 77% of the total Resource base. This material improvement in Resource confidence reflects the extensive infill drilling programs completed and provides a robust foundation for the forthcoming DFS. Importantly, Kasiya has achieved a Measured Resource for the first time, which represents at least the first six years of planned operations.

Eagar comments: “This updated MRE is a significant milestone for Sovereign as we advance Kasiya through the Definitive Feasibility Study. The 32% increase in Measured and Indicated contained rutile, together with our first-ever Measured Resource, reflects both the quality of our geological dataset and the exceptional nature of this deposit. The rigour of the updated resource estimation gives our strategic and commercial partners and us high confidence in the resource base underpinning our potential mine schedule. Kasiya remains unmatched globally as a source of natural rutile, and this MRE update reinforces its potential as a long-life, low-cost supplier to critical global supply chains.”

The updated MRE provides the resource foundation for the upcoming DFS mine schedule and mine optimisation study. The step-up in Measured and Indicated resource confidence is a critical input for the DFS, enabling the Company to present a resource base with the classification level required for bankable project financing and offtake discussions.

Sovereign’s DFS is progressing across all workstreams including mining, processing, infrastructure, environmental and social studies, and commercial arrangements.

MRE EMPHASISES SOVEREIGN’S STRATEGIC SIGNIFICANCE FOR GLOBAL SUPPLY CHAINS

Kasiya is a uniquely diversified source of critical minerals essential to defence, industrial and energy security. The updated MRE demonstrates Kasiya's potential to supply titanium-bearing rutile and graphite for several decades and its position as the world's single most strategically important source of rutile.

Natural rutile is a critical mineral essential to titanium metal production for aerospace, defence and medical applications. According to leading titanium consultants TZ Minerals International Pty Ltd (TZMI), demand for rutile from the titanium metals industry is forecast to grow 3% annually, while global supply is expected to decline by 7% per year over the next decade. The market faces a widening structural deficit

Natural rutile commands a significant premium over alternative titanium feedstocks due to its superior grade (95%+ TiO?), lower processing costs, and smaller environmental footprint. With no meaningful domestic production in key consuming nations, Kasiya’s scale and quality position it as the single most strategically important source of natural rutile outside of current producing regions.

With the updated MRE, Kasiya is positioned to address this critical supply gap at a time when new sources of natural rutile are urgently needed.

The graphite resource further enhances Kasiya's strategic value with a second critical mineral. With graphite demand forecast to grow 9% annually across battery and industrial applications (Benchmark Mineral Intelligence), the Project's 20.0Mt contained graphite provides significant exposure to a valuable by-product.

Mkango Rare Earths has announced
the results of an
updated feasibility study
for its Songwe Hill Rare Earths Project
in Phalombe, marking a significant step
forward for what could become one of
Malawi's most important mining developments

The company's President, Alexander
Lemon, noted that Songwe is now
among only a handful of rare earths projects
worldwide to have reached the Definitive
Feasibility Study (DFS) stage.
The project also holds a Mining Development
Agreement and has completed a
full Environmental, Social and Health
Impact Assessment in line with World
Bank standards — an indication of the
rigorous preparation that has gone into
bringing it to this point.

Songwe has attracted significant international
attention. It has been selected as
a strategic project under the European
Union's Critical Raw Materials Act and
has received US$4.6 million in technical
assistance funding from the United
States Development Finance Corporation
(DFC).

"Songwe in Malawi is a landmark
project for the community and the
Malawi economy," said Lemon. "Our
mission is to deliver sustainable, long
term value for our shareholders and
stakeholders."

The project is set to produce rare earth
elements- including neodymium,
praseodymium, dysprosium and terbium- that are essential to the global shift to
wards clean energy. These materials are
used in the permanent magnets found in
electric vehicles, wind turbines and a
wide range of electronic devices, mean
ing demand for them is expected to grow
strongly in the years ahead

According to the feasibility study,
Songwe is expected to operate for 18
years, producing an average of nearly
6,000 tonnes of rare earth oxides per
year during the first five years of full
production. The total cost of developing
the mine, processing plants and related
infrastructure in Malawi is estimated at
approximately US$417 million.

The financial projections are encour
aging. The project carries an estimated
post-tax net present value of US$339
million and an internal rate of return of
24 percent. Over the life of the operation,
post-tax cash flow is projected at
US$1.55 billion — figures that underline
the scale of economic activity the proj
ect could generate for Malawi

Under more optimistic pricing scenar
ios, those figures rise further still, with
the project's net present value climbing
to US$489 million and projected cash
flows reaching over US$2 billion.

The mine will operate as a conven
tional open pit, with ore processed and
value add beneficiation taking place on
site in Malawi. Songwe will produce a
high value purified mixed rare earth car
bonate (“MREC”)in Malawi, that can be
sold into international markets as a forex
generator export. The study confirms
mineral reserves of 18.1 million tonnes,
and the company believes there is scope
to extend the mine's life further as addi
tional resources are explored in the fu
ture

For Phalombe and for Malawi more
broadly, Songwe Hill represents a sub
stantial opportunity- both in terms of di
rect investment and the country's
growing role in supplying the critical
materials the world needs for a greener
future

Local artisanal and small-scale miners (ASMs) have welcomed the Reserve Bank of Malawi’s increase of the price that it offers in buying gold from local miners. The Central Bank buys gold from local ASMs through its subsidiary Ex port Development Fund (EDF), which has announced an increase in gold pur chase price from Mk 400,000 to Mk 570,000 for gold with 95% purity or higher.

In an interview with Mining and Trade Review, Percy Maleta, President of the Federation of Artisanal and Small Scale Mining in Malawi (FAS MIM) acknowledged that the price hike signals a move towards better market access and higher incomes through value addition and structured support.

Maleta explained that by offering better prices, the Central Bank is fight ing gold smuggling by enticing min ers who sell gold to smugglers due to better prices.

“While EDF provides a formal channel, many miners still prefer in formal routes due to better prices, quicker payments, and fewer barriers, which encourages smuggling.”

MwaiZulu, Interim Treasurer of the Gold Mining Association (GMA), echoed Maleta’s concerns urging EDF to expedite processing of payments to the gold dealers.

“The price adjustment only helps if the price is competitive and payments are quick. If not, miners will still prefer informal buyers.” he said. Zulu said EDF is not yet the first choice for local miners hence there is a need for the institution to sensitise the miners in gold mining hotspots across the country about its structured market.

He also urged government to create a more favorable environment for ASMs by simplifying licensing and establishing gold buying centers closer to the mining hotspots.

Maleta also called for strengthening formal markets such as EDF, improv ing licensing and regulation, investing in processing and value addition, and providing technical and financial sup port to miners.

There are a number of informal ASM gold mining hotspots that are sprouting across the country with for eign buyers flooding these sites to buy the precious mineral.

Group Village Headman Saiti of Makanjira told Mining & Trade Re view in an interview that some miners from foreign countries are now invad ing the Makanjira and Namizimu For est gold mining site with equipment such as excavators.

ASM illegal gold mining is result ing in a number of cross-cutting issues in the communities including death due to unsustainable mining practices, child labour, drug and alcohol addic tion, marriage breakages, increase in school drop-outs, and early pregnan cies

Lotus Africa, which operates the Kayelekera Uranium Mine in Karonga, says its established water supply and treatment systems and routine water quality monitoring processes are continually being improved, and the health and safety of its employees, the community and environment remain its absolute priority.

Lotus MD Greg Bittar says this in response to a Karonga District Council Water Quality Audit report which has identified gaps in water quality testing, water safety monitoring practices, certification of the water treatment system, and integration of disease surveillance at Kayelekera Uranium Mine.

The report says that mine management should, within seven days, improve the water supply system to meet Malawi’s recommended minimum drinking water standards, which must be verified through microbial water quality testing by an independent accredited laboratory.

The mine currently operates a piped water supply system, abstracting raw water from the Mswanga river, which is conveyed to a water treatment plant. The treatment process includes sedimentation ponds, tanks and clarifiers intended to reduce turbidity, optimize chemical and energy use, and prepare water for disinfection.

Although a complete water treatment system is in place at the mine camp, the report’s key observations include that chlorine dosing appeared to be inadequate or absent, as no chlorine containers or evidence of active chlorination were observed at the treatment plant.

It states that water quality testing is conducted at the mine; however, several critical gaps were identified including that tested parameters included pH, uranium, turbidity, and residual chlorine, but not all recommended parameters were consistently tested.

The report reads: “No microbial (bacteriological) water quality test results were available for Audit. However, Microbiological drinking water quality monitoring (Fecal Coliform, Fecal Streptococci, E.coli and Total coliform types of bacteria and others) is one of the mandatory parameters according to Malawi Standards for drinking water specifications.”

“Review of test results indicated turbidity levels consistently above the recommended limit of 5 Nephelometric Turbidity Units (NTU) for treated drinking water according to Malawi Standards for Drinking Water Specifications (MS214:2013).”

“No residual free chlorine (FRC) was detected in the daily water quality records reviewed. This is outside the acceptable range of 0.20–0.50 mg/L as stipulated in MS214:2013. Historical monitoring data further revealed that FRC levels were consistently zero at all sampling points, indicating that chlorination is either ineffective or not routinely practiced.”

“Uranium exposure through drinking water was identified as a concern. Two samples collected between 17 and 22 February 2026 recorded uranium concentrations of 43 ppb and 35 ppb, exceeding the Malawi standard limit of 30 ppb. Prolonged exposure at these levels may pose long-term health risks to workers.”

The report says although some water safety measures are in place, the following gaps were identified:  A comprehensive Water Safety Plan (WSP) was unavailable and there were no documented schedules for routine maintenance of water treatment infrastructure and there was limited evidence of systematic risk assessment and control measures across the entire water supply chain, from abstraction to point of use.

It cites the other gaps as limited technical capacity to conduct comprehensive water quality testing, particularly microbial analysis; and that routine monitoring focuses primarily on physical and chemical parameters, with no inclusion of microbial water quality testing.

“No documentary evidence was provided to confirm certification or approval of the water treatment system by the Ministry of Water or other relevant authorities for human consumption,” the report reads. The disease surveillance system at the mine was reviewed, with a focus on diarrhoeal diseases and the report came up with the following findings; health records confirmed reported cases of diarrhoea among workers. And medical registers documented 28 cases of gastroenteritis during January and February 2026.

“Approximately 80% of the workforce comprises non-resident workers operating under a MASM arrangement. As a result, gastroenteritis data for non-resident workers could not be established, limiting the ability to determine the true burden of diarrhoeal diseases among the entire workforce,” the report reads.

But Bittar points out in his response that the World Health Organization (WHO) indicates a provisional guideline value of 30 micrograms per litre (30ppb) U in potable water, but also provides for a tolerable daily intake of 60ppb (World Health Organization Guidelines for Drinking-Water Quality 2022).

Bittar says: “The uranium exposure identified on the two February dates highlighted in the Preliminary Correspondence were 43ppb and 35 ppb. We note that in the last 3 weeks, uranium levels have been below 20ppb.”

“Bottled drinking water is and will continue to be provided to all site personnel until further notice.”

He says increased chlorine dosing has been adopted and routine monitoring implemented for physical and chemical parameters, as well as microbial testing. In addition, Lotus is assessing further improvements for water quality management, including the installation of ultraviolet treatment.

“Additional improvement steps will identify opportunities to strengthen our engineering standards and practices, and to provide practical recommendations in relation to any potential operational issues.” says Bittar.

Lotus supports workers through the provision of international standard medical care and on-site medical facilities.  

Across Africa, the phrase “resource curse” has long shaped debates about mineral wealth and development. The theory, first articulated by economist Richard Auty in 1993, describes a paradox: countries endowed with abundant natural resources (particularly oil, gas, and minerals) often experience slower economic growth, weaker institutions, and greater social inequality than countries with fewer natural resources. Instead of automatically delivering prosperity, resource abundance can distort national economies, fuel corruption, and intensify political instability.

One of the key economic mechanisms often associated with the resource curse is “Dutch Disease.” This occurs when a boom in natural resource exports brings a large inflow of foreign currency into the economy. As the exchange rate appreciates, other sectors such as agriculture, manufacturing, and tourism become less competitive internationally. Over time, the economy becomes heavily dependent on resource exports, weakening diversification and exposing the country to volatile global commodity markets. Despite the resource curse framework being influential, it is increasingly clear that natural resource wealth does not inevitably lead to economic decline or institutional failure. Countries such as Norway, Chile, and Botswana demonstrate that mineral wealth can be managed responsibly to support economic growth, institutional development, and social welfare. Their experiences show that the outcomes of resource extraction depend less on the resources themselves and more on how they are governed.

For Malawi, which is now entering a new phase of mineral development driven by global demand for critical minerals, there is an important question which needs to be addressed: can Malawi avoid the “resource curse” that has affected many resource-rich countries? The answer lies in re-conceptualizing the resource curse not as an inevitable outcome, but as a set of governance risks and opportunities that must be proactively managed. Malawi is increasingly attracting international attention for its critical mineral potential, particularly minerals essential for renewable energy technologies, battery manufacturing, and advanced electronics.

Several mining projects are now progressing from exploration toward production, signaling a potentially transformative moment for the country’s economy. Among the most prominent developments is the Songwe Hill Rare Earth Project in Phalombe District, led by Mkango Resources. The project contains rare earth elements used in wind turbines, electric vehicles, and high-tech electronics. If successfully developed, Songwe Hill could position Malawi as a strategic supplier in global clean-energy supply chains. Another significant project is the Kasiya Rutile and Graphite Project in Lilongwe District, being developed by Sovereign Metals. Kasiya is widely regarded as one of the world’s largest rutile deposits and also contains graphite—an essential mineral used in lithium-ion batteries that power electric vehicles and energy storage systems. Malawi also hosts other notable mineral developments. The Kayelekera Uranium Mine in Karonga has seen renewed interest amid rising global uranium demand linked to nuclear energy expansion. Taken together, these developments signal the emergence of Malawi as a potential player in global critical mineral supply chains, particularly as the world accelerates its transition toward renewable energy technologies. Malawi needs to re-imagine its standpoint for resource wealth to avoid falling into the resource curse trap.

The traditional resource curse narrative often assumes economic determinism in resource-host countries. It is an idea that resource abundance automatically leads to underdevelopment. This perspective overlooks the role of policy choices, institutional capacity, and governance frameworks. The experiences of countries like Norway and Botswana illustrate that natural resources can be harnessed effectively when strong institutions, transparency mechanisms, and strategic development policies are in place. Many of the negative outcomes associated with resource wealth arise when extraction interacts with weak or fragmented institutions. In such contexts, natural resource revenues can intensify elite competition, corruption, political instability and community conflicts. Strengthening regulatory institutions such as Malawi Mining Regulatory Authority (MMRA), Malawi Environmental Protection Authority (MEPA) and Malawi Revenue Authority (MRA) for improved licensing transparency, ensuring environmental oversight and safeguarding mining revenue respectively will therefore be essential if Malawi is to translate mineral wealth into long-term sustainable economic development benefits.

The African mineral economies also operate within asymmetrical global economic relationships, where multinational corporations and external investors exercise considerable influence over extraction and trade. This dynamic is also described as mineral neo-colonialism, can limit domestic value addition and lead to the repatriation of profits abroad. As a result, resource-rich countries remain mere suppliers of raw materials while higher-value processing and manufacturing occur elsewhere, exporting job opportunities.

For Malawi, this raises a crucial strategic question: will critical minerals simply be exported as raw materials, or will they serve as the foundation for broader industrial development? It is important for policy makers to realize that Malawi stands at an early and critical stage of its mining development trajectory. Understanding our current mineral value addition capacity in terms of what can be domestically processed, and added value is critical to avoid policies that derail the sector. Unlike countries that discovered minerals decades ago, Malawi has a unique opportunity to design governance frameworks before large-scale extraction becomes deeply entrenched.

To avoid the pitfalls of the resource curse, several strategic priorities will be essential. Strengthening mineral governance institutions will be critical. But also, active participation of local citizens and government in the shareholding of the mining projects through Malawi Stock Exchange (MSE) is a game changer. As such the government’s mining company, Malawi Mining Company (MAMICO) is a suitable driver in this space. Further, transparent licensing systems, effective regulatory oversight, and robust environmental monitoring can help ensure responsible mining practices and public trust. Malawi should also consider promoting local value addition where feasible. Rather than exporting raw minerals alone, policies could encourage mineral processing, beneficiation, and downstream industrial activities that capture more economic value domestically. Investing mineral revenues into national development priorities will also be important. Mining revenues should support long-term investments in infrastructure, education, and economic diversification, ensuring that mineral wealth benefits the broader economy. At the same time, community participation and benefit-sharing must remain central to mining development. Many mining projects are located in rural areas and ensuring that local communities benefit from extraction activities is critical for maintaining social stability and building a social license to operate.

The global transition toward clean energy technologies is dramatically increasing demand for critical minerals. For Malawi, this represents both a significant opportunity and a complex challenge. If managed strategically, the country’s emerging mining sector could become a catalyst for economic diversification, industrial development, and international investment. If poorly governed, however, it could reproduce the patterns of inequality and dependency that have characterized extractive economies elsewhere. The resource curse should therefore not be seen as an inevitable destiny but as a policy challenge that can be addressed through strong institutions, transparent governance, and strategic economic planning. Malawi’s early-stage mining developments offer a rare window of opportunity to design a mineral governance model that prioritizes transparency, national value creation, and sustainable development. How Malawi chooses to manage its critical mineral wealth today will ultimately determine whether these resources become a curse or a catalyst for economic transformation in the future.

There are mounting calls from mining industry commentators for Australian Lindian Resources to consider processing of monazite it wants to start mining from Kangankunde in Balaka within Malawi.

Lindian, which is mobilising machinery to start mining this year, has planned to export monazite concentrate from Kangankunde to Iluka Resources’ refinery in Australia.

The company signed a 15-year binding offtake agreement with Iluka for 6,000 tonnes per annum of rare earth concentrate and a US$20-million loan facility from Iluka to support project construction.

But our local readers continue to react to the Kangankunde Project development articles in our social media channels where there are calling on the Malawi Government to ensure that the Kangankunde product is fully processed locally into high value rare earth elements.

Mineral Sector analyst Felix Ngamanya Sapao explains that using current world market prices in calculations, Malawi will gain US$6,500 per metric tonne if the country exports concentrate from Kangankunde compared to US$65,000 per tonne if it is refined locally.

Sapao says: “Government needs to investigate the economic advantages and disadvantages for Malawi regarding the export of monazite concentrate versus domestically refined rare earth products focusing on tax revenue, royalties and job creation.”

“There is also a need to evaluate whether exporting concentrate is ideal for Malawi comparing the trade-offs between immediate economic returns and higher value-add retention.”

He explains that rare earth is a globally strategic mineral hence Malawi risks losing it cheaply if it fails to control its exports in order to realise whole value of the resource hinting that without restricting raw exports, international investors will consider Malawi as only a source of cheap raw materials other than a viable investment destination.

Seasoned geologist Ignatius Kamwanje commented that full processing of the ,monazite within Malawi can enhance technology transfer and skills development saying if this process is conducted in a foreign country, Malawi is denied such benefits.

Kamwanje says; “With full scale processing, Government can collect increased revenues from taxes and royalties. It can also facilitate diverse value-added products in a country hence fetching increased revenue through the sale of finished products.”

“Full scale production facilitates employment creation, building of the local supply chain through purchase outlets that enhance economic activities in so doing may facilitate economic diversification and infrastructure development.”

“All in all, investing in processing facilities drives infrastructure development including energy sources, roads, banking and market facilities.”

State President Arthur Peter Mutharika issued an Executive Order banning exportation of raw minerals from Malawi.

Mutharika states in the Executive Order that it is aimed at ensuring the sustainable development and utilization of the country’s mineral resources, and to promote the growth of the national economy through value addition and industrialization.

“The purpose of the Executive Order is to prohibit the exportation of raw minerals, promote local value addition, and ensure that our mineral resources contribute to the economic development and prosperity of our Malawi, “he says.

He explains that the order, which came into effect on October 21 this year shall apply to all minerals extracted in Malawi including but not limited to uranium, rare earth elements, niobium, graphite, tantalum, bauxite, coal, limestone, gemstones, heavy mineral sands, vermiculite, phosphate, pyriterutile, gold, diamonds and copper.

The provisions shall not apply to minerals that have been processed, refined or value added in Malawi in accordance with the laws and regulations governing the mining sector,” states the Executive Order.

Lindian responded that it will not be affected by the ban as it will process the ore to concentrate form, which is the highest level of beneficiation that is possible in Malawi.

Kangankunde Rare Earth Project in Balaka is one of the largest rare earth deposits in the world. Lindian is operating the globally significant prospect using a medium scale mining licence that it bought from a local company Rift Valley Resource Developments.

Rift Valley acquired the licence following protracted court wrangling that pitted the Malawi Government and various investors who were interested to develop the globally significant asset.

There were a number of negative comments from Malawians when Sovereign Metals signed a non-binding memorandum of understanding (MOU) for graphite marketing from its Kasiya Rutile-Graphite Project with US Company Troxys at this year’s Investing in African Mining Indaba in South Africa in the presence of a representative of the US Government which is sourcing critical minerals from Troxys and other companies through its US$12-billion Project Vault.

Some local media reports questioned the absence of the Malawi Government in the signing of the deal while other social media commentators said that the deal is a sign of exploitation by the Americans.

Following this deal, as reported in our article on Page 8 and 9, Sovereign Metals has signed another MOU with a Japanese firm Mitsui for the purchase of rutile from Kasiya.

The agreement with Mitsui is also non-binding, meaning it simply reflects an intention to work together and negotiate a future commercial agreement if the project proceeds successfully.

The Kasiya project has also attracted other strategic partners, including global mining giant Rio Tinto and the International Finance Corporation of the World Bank, which are involved in investment and environmental standards for the project.  

As Sovereign MD and CEO Mr Frank Eagar is quoted in the article, there is no cause for alarm for Malawians on these deals as they do not imply that there is any mining taking place now at Kasiya that Malawi is not benefitting from.

As Eagar writes, such arrangements are common in the mining industry because investors and lenders often require evidence that there will be reliable markets for a mine’s products before they commit the significant funding needed to build it.

We agree with Mr Eagar in urging Malawians to appreciate the positivity in these deals, which imply that the Kasiya deposit is attracting interest from key players in the global mining industry as the world seeks new sources of critical minerals.

It is our plea to Malawians to work with the Government in ensuring that there is a conducive environment in the country that tolerates mining investment by showing good will to law abiding investors.

It is a fact that as owners of the country’s mineral resources, Malawians want huge benefits from the minerals. But citizens will adequately benefit through a favourable legal and regulatory framework, and mining development agreements that companies sign with the Malawi Government not through government presence in signing of MOUs between investors.