Mining & Trade News

• Resource now among world’s largest and most strategically significant deposits
• Mineralisation remains uniquely non-radioactive

ASX-listed Lindian Resources says it has defined an Indicated Category Resource of 61 million tonnes @ 2.43% Total Rare Earth Ore (0.5% TREO cutoff grade) within an updated Mineral Resource Estimate (MRE) of 261 million tonnes grading 2.14% TREO for its Kangankunde Rare Earths Project in Balaka.

The MRE update follows the Phase 3 infill drilling program completed in the third quarter of 2023, which added 45 drill holes for 4,886 metres of drilling.

CEO for Lindian Alistair Stephens says in a Press Statement that the Indicated Resource includes a higher-grade component of 25 million tonnes grading 3.26% TREO (2.5% TREO cutoff grade) and contains 300,000 tonnes of neodymium-praseodymium (NdPr) with NdPr ratio averaging 20.2% of TREO.

Stephens says the higher-grade component of the Indicated Resource will be significant for the Stage 1 Feasibility Study to be published this quarter.

“The Indicated portion of the MRE is an excellent outcome and exceeds our expectations in terms of tonnage and grade, particularly when taking into account the higher grade 25 million tonne component which likely underpins multiple years of production under our Stage 1 development plan,” he says.

Lindian’s Executive Chairman Asimwe Kabunga comments that “Lindian is pleased to deliver another key milestone central to its near-term goal of bringing the fully permitted Kangankunde project into production and establishing the world class project as a dependable long-term supplier of rare earths concentrate to global markets. “

“This updated MRE reaffirms the project’s status as a top tier asset that will deliver material benefits to Malawi, the local community, key stakeholders and our shareholders. Other milestones to be reported shortly will reinforce Kangankunde’s strategic value,” says Kabunga.

The resource estimation at Kangankunde utilised multi-element relationships from rock chemistry and rare earth mineralisation to define six domains within the overall carbonatite intrusion. These domains were assessed against geological understanding and field observations from surface mapping and drill core and were considered appropriate representations of the mineralisation distribution.

Grade tonnage curve analysis of the resource shows the robustness of grade continuity in the resource with a reduction in tonnes and increase in grade with increasing cut-off.

Mineral Tenement and Land Tenure Status

The Kangankunde Rare Earths Project is located in Balaka District in southern Malawi, 90 km north of the commercial city of Blantyre. The mineral tenements include a Medium Scale Mining Licence which is surrounded by an Exploration Licence.  The Exploration and Mining Licences have an Environmental and Social Impact Assessment Licence issued under the Malawi Environmental Management Act No. 19 of 2017. Both licences are in good standing with no known impediments.

Geology

The Kangankunde Hill rises to a height of up to 200 m above the surrounding plain. The deposit contains a central zone of carbonatite rocks passing outwards to a series of zones of altered breccias of varying composition of carbonatite and wall rock clasts in a carbonatite matrix, and ultimately into unaltered gneiss host rock. Similar to many rare earth deposits, the main rare earth containing mineral in the deposit is monazite.

Estimation domaining utilised multi-element relationships from minor rock chemistry and rare earth mineralisation to define five domains within the overall carbonatite limits. These domains were assessed against geological understanding and field observations from surface mapping and drill core and were considered appropriate representations of the mineralisation distribution. Leapfrog was utilised to build mineralisation domain wireframes and to code sample intervals with the applicable domain.

Drilling Techniques and Hole Spacing

Drilling completed at the Kangankunde Rare Earths Project and used to support the MRE includes 12 diamond core (DD) holes totaling 2,387.4 metres, 117 reverse circulation (RC) holes totaling 16,424 metres, and eight RC holes with diamond core tails (RCD) totaling 3,080.7 metres. Drilling of all types totals 21,892 metres.

All holes are drilled from surface with various orientations depending on terrain constraints. RC drilling utilised a 5.25” (134 mm) face sampling hammer to generate one-metre samples, which are placed into large plastic bags marked with the hole ID and sample interval. Sample weights are recorded for each sample, with recovery maximised through use of PVC collars in upper portions of the collar.

Diamond drilling used a HQ3 size (63.5 mm diameter) with triple tube techniques used to maximise core recovery. NQ2 (50.6mm diameter) core was used for deeper drill holes. Drill core was collected from a core barrel and placed in appropriately marked core trays. Down hole core run depths were measured and marked with core blocks. Core was measured for core loss and core photography and geological logging completed.

Strong community, government relations

The Kangankunde Project has strong backing from both the local community and the Malawi Government. Though mining is yet to start at the site, Lindian executes a number of Corporate Social Responsibility (CSR) initiatives in the area which includes assisting Kangankunde Primary School with learning materials.

Minister of Mining Monica Chang’snamuno also visited Kangankunde where she hailed Lindian for fast-tracking works at the site. 

ASX-listed Lindian Resources, which is conducting mine development works at Kangankunde Rare Earths Project in Balaka, says the project is on track to be the next rare earth producer.

Lindian CEO Alistair Staphens said this in his presentation at Malawi’s first ever Mining Investment Forum at Bingu International Convention Centre in Lilongwe.

Stephens explained that studies have indicated that Kangankunde is destined to become a rare earth market leader producing best-value, most cost-efficient rare earths concentrate.

He said the project will also be an environmentally sustainable producer of rare earths as studies have also proved that the product in non-radioactive.

Meanwhile, Lindian has announced final drill assay results for Kangankunde Rare Earths Project that show continuous high-grade mineralization at the site which includes;

? 80 metres @ 3.83% TREO from surface to EOH in KGKRC099

? 140 metres @ 3.20% TREO from surface to EOH in KGKRC096

? 100 metres @ 3.09% TREO from surface to EOH in KGKRC097

? 80 metres @ 2.72% TREO from surface to EOH in KGKRC109

? 150 metres @ 2.62% TREO from surface to EOH in KGKRC093 including, o 90 metres @ 3.54% TREO from 58 metres

? 150 metres @ 2.60% TREO from surface to EOH in KGKRC098 including, o 21 metres @ 4.49% TREO from surface, and o 66 metres @ 3.20% TREO from 70 metres.

Stephens explained in a Press Statement that the average grade of rare earths critical metal elements neodymium-praseodymium (NdPr) remains consistent at ~20% of Total Rare Earth Ore (TREO) with grades of up to 23.5% TREO recorded.

He said: “Assays for the Phase 3 drill program are now finalised. Lindian’s technical team has completed more than 20.7 kms of drilling at Kangankunde in less than 15 months to define what is one of world’s best rare earths deposits with excellent grade, non-radioactive material, a high NdPr ratio and enormous scale.”

“Our technical team is to be congratulated for their efforts. We will soon report an updated Mineral Resource Estimate that includes the Indicated component of the Resource as well as an Ore Reserve Estimation which is another meaningful benchmark to assess the project’s unlocked value. Following this will be further updates on mine development capital expenditures (capex) and operating expenditures (opex) prior to the release of the Feasibility Study this quarter.”

Lindian’s Executive Chairman Asimwe Kabunga explained that Kangankunde’s project developmnent continues to advance very rapidly with multiple workstreams advancing concurrently.

 “We can commence construction in the coming months. Interest in the asset continues to build from a broad number of interested parties with many keenly awaiting our Feasibility Study. We are confident it will showcase the project’s compelling economics,” he said.

In August 2023, Lindian announced its maiden Mineral Resource Estimate (MRE) for the Kangankunde Rare Earths Project of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cut-off grade.

The infill holes reported are designed to provide sufficient data to increase the confidence level of a portion of the MRE to Indicated status.

The data from all the Phase 3 drilling is currently being used to update the resource model which will be applied to detail mine design and scheduling and Ore Reserve Estimation.

The areas which were targeted by the Phase 3 infill program are those considered most likely to define initial feed for operation of the Stage 1 Processing facility. These are; the northern area of the central carbonatite complex, the western area of the central carbonatite complex; and the south-eastern area of the central carbonatite complex.

We join a number of stakeholders in the minerals sector in congratulating the Malawi Government for successfully holding the inaugural Mining Investment Forum from April 23 to 24.

As reported in our lead article; at the forum, private firms in mining sector raised a number of challenges that are impeding development of mining projects.

Chairman of Akatswiri Holdings, who represented the private mining firms at the opening ceremony of the Forum, told State President Dr Lazarus Chakwera who officially opened the Forum that the challenges include delays in signing Mine Development Agreements (MDAs), inadequate transportation and energy infrastructure which increases operational costs, shortage of skilled labor and technical expertise, local market volatility and price fluctuations which affect profitability, and illegal mining activities that are undermining formal sector operations and revenue collection efforts.

We also feel the Malawi Government must seriously address these challenges in order to enable the sector develop.

Government indeed needs to find a way to ensure that MDAs are finalized in a short period of time to avoid frustrating investors as the world commodity market is very volatile hence these delays can affect the feasibility of projects in the long run.

Malawi also needs to address transport and energy issues affecting mining projects. The Ministry of Transport and Public Works has to prioritize construction, rehabilitation and maintenance of roads to mining sites.

It is sad that mining sites such as Wimbe area in Kasungu where Shayona Cement Corporation has limestone mines and a state-of-the-art clinker plant and Chimwadzulu in Ntcheu where Mwalawanga Mining has a mining licence for the highly priced corundum have poor access roads.

As Minister of Transport and Public Works Jacob Hara is quoted in our article on this page, arrangements should be made between mining companies and government to ensure that roads to these economically productive sites are in good condition.

Likewise, the Ministry of Energy needs to ensure that there is power available for mining companies. It becomes expensive hence frustrating for investors to be using diesel generators to power their heavy-duty operations.

There is also need for interventions to address shortage of foreign exchange which is affecting importation of various equipment for mining and mineral processing.

Notably, this problem is crippling the cement producers as for a long time, they have been complaining that they are not able to import spare parts for their plants and raw materials due to foreign exchange shortages, which is frustrating.

Private sector players in the minerals sector have urged the Malawi Government to address a myriad of challenges dogging development of mining projects in the country in order for the sector to adequately contribute to the country’s economic development.

The resource firms tabled their concerns to State President Dr. Lazarus Chakwera in Lilongwe when he officially opened the first ever Malawi Mining Investment Forum that was held from April 23 to 24.

Chairman of Malawi’s leading mining and mineral consulting group Akatswiri Holdings Hilton Banda, who made a keynote presentation on behalf of the private sector captains in the sector at the Forum, said the major challenges private investors are encountering in the sector include delays by the government to conclude Mine Development Agreements (MDAs) for projects, which is frustrating investors.

Banda told the President that the other challenges include inadequate transportation and energy infrastructure which increases operational costs, shortage of skilled labor and technical expertise, local market volatility and price fluctuations which affect profitability, and illegal mining activities that are undermining formal sector operations and revenue collection efforts.

“This is a young sector, and its challenges are enormous, and therefore, we will continue to count on Government’s support to realize the full potential of this most promising sector,” said Banda, hinting that with current projects’ projection, mining will be contributing more that 10% to Malawi’s Gross Domestic Product (GDP) by 2030.

He also made recommendations to the President to encourage Malawians to invest in mining and its value chain, facilitate financing for mining projects by collaborating with financial institutions, and simplify bureaucratic procedures for acquiring licenses and signing agreements to avoid delays.

The mineral sector executive also advised government to study taxation models of successful mining countries and establish a competitive tax rate to attract investment, increase the capacity of energy generation for value addition, establish a mining culture among Malawians by including lessons on mining in primary and secondary schools, and establish analytical laboratories for geosciences in the country.

“Sustainable development of the mineral sectors in Africa, among others, depends on sound and comprehensive mining policy, fiscal regimes and legislative frameworks, which take into account prevailing international best practices, attract investment and enables the citizenry across the continent to realize optimal benefits from mining,” he said.

In his speech marking the official opening of the forum, Chakwera hailed the holding of the event saying it will help to answer some of the questions to challenges being experienced in the sector.

Chakwera also said the forum is a platform where players in the sector can network, learn, experience and unlock various opportunities.  

He said: “Today we are talking of precious minerals that God blessed us with. Today we have known that apart from farming, our soils have precious minerals that are on high demand across the world.”

“Today the question should be, having all these precious minerals in our soils why Malawi still remains poor. These questions must be answered through this mining investment forum in order to correct where the problem generates.”

“My idea in coming up with Agriculture, Tourism and Mining (ATM) week is to ensure that there is collaborative effort in alleviating challenges affecting our economy.”

Chakwera stressed that ignorance and negligence are the main challenges killing the mining sector as many Malawians are not aware of the mineral wealth lying across their land and also that some are conducting the mining business unlawfully.

He said: “Firstly, ignorance is the main cause why as a nation we are not benefiting much from our mineral resources.  Many of us we just walk on our land not knowing what is inside our land.”

“Secondly, is negligence whereby everyone just does whatever he or she wants. As a nation, we need to set up governing bodies and organizations to ensure security of the minerals and local beneficiation.”

“For that reason, my Government established the mining authority to review all mining development agreements in order to negotiate a win – win deal.”

“Even in Mangochi where people including foreigners were just mining gold unlawfully, I sent MDF (Malawi Defense Force) team to bring sanity and order so that they all mine according to the law and develop our economy.”

Chakwera also said his government is working to ensure that ASMs get access to loans from the banks to develop their businesses.

In her speech, Minister of Mining Monica Chang’anamuno said the forum is a shared vision to unlock the immense potential of the nation’s mining sector and pave the way for sustainable growth and development.

Chang’anamuno said the presence of key players in the sector including the President is a testament to government’s dedication to the advancement of the country’s mining industry.

She said: “The opportunities that lie before us are vast, and the challenges we face are significant. However, I am confident that through collaboration, innovation, and a shared sense of purpose, we can overcome these hurdles and unlock the full potential of our mining sector for the benefit of all Malawians.”

“This forum serves as a platform for dialogue, exchange of ideas, and forging partnerships that will drive sustainable investment and growth in our mining industry.”

“It is an opportunity for us to showcase the rich mineral wealth of our country, highlight the investment opportunities available, and demonstrate our commitment to responsible and inclusive mining practices.”

Chang’anamuno urged stakeholders in the sector to work together to leverage mineral resources, build capacity, and create a conducive environment for investment that will generate long-term benefits for the nation and its people.

ASX-Listed resources group DY6 Metals says it has completed its initial geophysical and geochemical exploration programmes at its Salambidwe Rare Earth Exploration and niobium prospect in Chikwawa.

The exploration programmes included an airborne geophysical survey on Salambidwe, which is a virgin rare earth prospect with limited previous exploration, that was launched by Minister of Mining Monica Chang’anamuno.

CEO for DY6 Lloyd Kaiser reports that his company has received assay results for the grid-based soil and rock chip sampling, and results from the 128 soil and 386 rock chips expand the known area of anomalous responses.

Kaiser says in a statement that maximum values from separate rock chip samples were 1.21% total rare earths (TREO) and 0.12% Nb2O5 (Niobium Oxide).

He says the 45-line kilometre airborne geophysical program confirmed the highly concentric nature of the intrusive complex.

“DY6 is assessing the combined geochemical and geophysical data to refine targets prior to a maiden drill program,” Kaiser says.

DY6 undertook ground-based grid controlled geochemical sampling to confirm historical exploration results of previous holder of the tenement Globe Metals & Mining and to expand the footprint of anomalous responses.

Previous activity had not closed off the anomalous zones, nor had airborne geophysical surveys covered the area due to its proximity to the border with Mozambique. Globe completed a sampling and ground radiometric survey over part of the central ring complex area of the intrusion outlining several zones of strongly anomalous TREO and Nb responses, numerous zones extended to the limits of the sampling.

Kaiser explains that DY6’s sampling was specifically aimed at either extending or closing off these anomalous zones to the northern and western part of the licence

He says the area of the historical sampling was not resampled, but several traverses were made across the outlined anomalous areas to ensure consistency and coherency of results.

Kaiser explains that absolute values obtained from the DY6 exploration appear to be slightly lower in tenor than the historical data; which is interpreted that this is due to the majority of the DY6 sampling being peripheral to the historical sampling and extending away from the central anomalous area.

DY6 detailed sampling expanded the anomalous areas on 100m x 100m spacing and the more regional and confirmatory sampling was at 100m intervals along lines 500m apart.

Nb2O5 results also extended the anomalous areas tended both zones, though their extent is more limited than the TREO. The western zone is approximately 1,700m long (including outside tenure) and the eastern zone is approximately 1,500m long.

Kaiser says: “The expansion of the anomalous areas at Salambidwe creates an enticingly large target; the exploration team have done an excellent job in rugged terrain.”

“The company will define the priority targets for drill testing then review these in conjunction with the digital terrain data to ascertain accessibility.”

The Malawi Government says it is in process of reviewing the country’s Mines and Minerals Policy to take into account current trends in the sector.

Public Relations Officer for the Ministry of Mining Tibonge Kampondeni told Mining & Trade Review that the Ministry intends to align the new policy to Malawi 2063 Economic Agenda which emphasizes on the development of Agriculture, Tourism and Mining sectors.

Kampondeni explained that the new Policy will focus on improving in some areas including financing and mechanization for Artisanal Small-scale Miners (ASMs).

She said: “The focus of the government is on Agriculture, Tourism and Mining sectors (ATM) and we have the MW2063 Vision so the policy needs to be aligned to these areas.”

“We talk about increased productivity and yet we are stopping small-scale miners from mechanization, the reason is that we want to protect the environment.”

“They can only use such type of equipment after applying to the Commissioner of Mines. We want to take care of this burden.”

“The aspect of financing was not conspicuous in the old policy. We need a financing mechanism that will link ASMs with financing institutions,” said Kampondeni.

Kampondeni explained that unlike the old policy, the new policy will improve collaboration between small, medium and large-scale miners.

She said the policy in pipeline will also encourage Corporate Social Responsibility (CSR) activities to ensure that communities surrounding mines benefit from the mineral resources.

Kampondeni: “There is a need for collaboration between small, medium and large miners where for example medium or large-scale mining companies could be used as outlets for small-scale miners in the value chain process.”

“For small-scale miners, CSR is not compulsory and they do not have community development agreements but at least we need to come up with a mechanism for mining companies to plough back to the community.”

“The issue of Occupational Safety, Health and Environment were also not clearly spelt out in the old policy. This is another area we want to look at.”

The coming Mines and Minerals Policy for Malawi reflects the realization by Government that the development of the Malawi mining industry can directly contribute to the economic growth of the country.

Meanwhile, the country is still using the old policy which was operationalized several years ago.

The Malawi Government says it is in process of reviewing the country’s Mines and Minerals Policy to take into account current trends in the sector.

Public Relations Officer for the Ministry of Mining Tibonge Kampondeni told Mining & Trade Review that the Ministry intends to align the new policy to Malawi 2063 Economic Agenda which emphasizes on the development of Agriculture, Tourism and Mining sectors.

Kampondeni explained that the new Policy will focus on improving in some areas including financing and mechanization for Artisanal Small-scale Miners (ASMs).

She said: “The focus of the government is on Agriculture, Tourism and Mining sectors (ATM) and we have the MW2063 Vision so the policy needs to be aligned to these areas.”

“We talk about increased productivity and yet we are stopping small-scale miners from mechanization, the reason is that we want to protect the environment.”

“They can only use such type of equipment after applying to the Commissioner of Mines. We want to take care of this burden.”

“The aspect of financing was not conspicuous in the old policy. We need a financing mechanism that will link ASMs with financing institutions,” said Kampondeni.

Kampondeni explained that unlike the old policy, the new policy will improve collaboration between small, medium and large-scale miners.

She said the policy in pipeline will also encourage Corporate Social Responsibility (CSR) activities to ensure that communities surrounding mines benefit from the mineral resources.

Kampondeni: “There is a need for collaboration between small, medium and large miners where for example medium or large-scale mining companies could be used as outlets for small-scale miners in the value chain process.”

“For small-scale miners, CSR is not compulsory and they do not have community development agreements but at least we need to come up with a mechanism for mining companies to plough back to the community.”

“The issue of Occupational Safety, Health and Environment were also not clearly spelt out in the old policy. This is another area we want to look at.”

The coming Mines and Minerals Policy for Malawi reflects the realization by Government that the development of the Malawi mining industry can directly contribute to the economic growth of the country.

Meanwhile, the country is still using the old policy which was operationalized several years ago.

Coal miners in Malawi are finding it difficult to meet the high demand for coal in the country due to operational challenges.

Mining & Trade Review has established that demand for coal has skyrocketed in Malawi due to foreign exchange shortages which are forcing consumers to buy locally.

MD for Rukuru Coal Mining Bruno Kloser, whose company runs Chombe Coal Mine at Chiweta in Rumphi District, said due to the rising demand for coal, his company is working on increasing production at the mine.

Kloser said currently the mine is not able to meet the demand from customers as there is need for installation of additional equipment to increase rate of production.

He said: “We are not able to meet the demand at the moment as production does not just increase overnight so we need to get the equipment and staff.”

MD for DDY Coal mine David Nyirenda admitted that there is high demand for coal because there is no competition with imported coal as companies are finding it difficult to import coal due to forex shortages.

“There is demand for coal as we do not have competition from outside Malawi as companies are finding it hard to import coal due to scarcity of forex, however we are not able to meet the demand due to lack of working capital as local financial institutions are always reluctant to lend to the industry,” Nyirenda said.

Acting Mine Manager for Mchenga coal mine Assan Tembo said in a separate interview that Mchenga is working on meeting the demand from customers by opening other mining sites in its tenement area.

“This side we had heavy rains so we were not able to open other ore sites, but after the rains finish we will open other sites so that we are able to meet the demand,” he said

Tembo disclosed that in order to implement the expansion plans, the Company has mobilised additional equipment and is working on repairing a bulldozer.

The major consumers for coal in Malawi include the tobacco, brewery and cement industries.

The Ministry of Mining has announced that Malawi will hold its first ever mining investment forum this year.

Minister of Mining Honourable Monica Chang’anamuno said at a Press Briefing at her Ministry’s headquarters in Lilongwe that the forum will be held at Bingu International Convention Centre from April 23to 24under the theme: Transforming the Nation through sustainable mineral extraction.

Chang’anamuno said the forum is important because the mining sector is central to the country’s development agenda as outlined in Malawi 2063.

She said: “Malawi has essential mineral resources such as rare earth elements, graphite, uranium, gold and others which are instrumental to industrialization.”

“These minerals are a significant source of government revenue through royalties, taxes and fees which are essential for funding development projects across various sectors in the country.”

The Minister said that the Forum will serve as a platform for multi stakeholder engagement that will bring together government representatives, artisanal and small-scale miners (ASMs), mining companies, financial institutions, civil service organizations (CSOs) and various service providers.

Chang’anamuno also said the Forum will help participants to explore strategies and solutions to unlock Malawi’s enormous mineral potential for the benefit of its citizens.

She said the Forum is expected to attract over 300 participants from African countries and beyond, and Government expects the event to subsequently attract many investors not only in mining and mineral exploration but also in other sectors such as tourism and hospitality as service providers.

“This Forum is going to benefit the country a lot as it will unearth the potential of our minerals sector to the world so that a lot of investors can come and invest,” said chang’anamuno.

The Forum has been organized by the Malawi Government in partnership with the private sector and other stakeholders in order to promote Malawi’s mining sector.

Chang’anamuno hinted that Government plans to make the Forum, which will be inaugurated by his Excellency the President Dr. Lazarus Chakwera, an annual event.

Though it is key in Malawi’s development agenda, the mining sector only contributes a staggering 1% to Malawi’s Gross Domestic Product (GDP).

Answering questions from journalists on why Malawi is not adequately benefiting from the sector, Chang’anamuno appealed to Malawians to be patient saying large scale mining projects take years to reach production stage.

“It is just a matter of time before the country starts reaping the benefits from the large-scale mining projects which have to undergo exploration and feasibility studies that require time,” she said.

Meanwhile, the Minister announced at the same press briefing that preparations to operationalize the long-awaited Mining and Minerals Regulatory Authority are at an advanced stage.

“The Ministry was waiting for financial allocation from the Treasury and I am glad to report that funds have been set aside in the current budget to operationalize the Authority,” she said.

Malawi has repealed the Mines and Minerals Act 2019 and replaced it with a new Act that incorporates provisions for the establishment of an independent regulatory authority of the mining and mineral resources.

The new Act explains that the regulatory authority will be responsible for regulating mineral resources and mining activities in the country including but not limited to; granting of mining licences; inspection of mining activities; advising the Minister on policy matters of the mining sector; and generally implementing the objectives of the Act and anything necessary or incidental to the better carrying out of the functions of the Authority.

Stakeholders in the sector have received news about the establishment of the Mining and Minerals Authority with a pinch of salt as there is a risk of duplication of roles between the Authority and other government departments such as Geological Survey Department and Department of Mines, which carry out functions similar to those allocated to the Authority.

The Mines and Minerals Act 2023 provides for the Minister responsible for mining to appoint five members of the Authority.