Mining & Trade News

ASX-listed Lindian Resources, which is conducting mine development studies at its Kangankunde Project in Malawi’s Balaka District, says infill drilling results from the project show strong continuity of high grade mineralisation from surface to end of hole in planned first phase mining areas.

Lindian CEO Alistair Stephens explains that assay results received for initial 21 holes of the Phase 3 infill drilling program has displayed consistent outstanding high-grade mineralisation demonstrating strong continuity.

• Significant intersections include:

? 150 metres from surface to EOH averaging 3.78% TREO in KGKRC087

? 75 metres from surface to EOH averaging 3.57% TREO in KGKDD011

? 70 metres from surface to EOH averaging 3.44% TREO in KGKDD012

? 150 metres from surface to EOH averaging 3.21% TREO in KGKRC086 including: o 38 metres @ 4.63% TREO from 74 metres to 112 metres

? 150 metres from surface to EOH averaging 3.18% TREO in KGKRC112

? 75 metres from surface to EOH averaging 3.15% TREO in KGKDD010

? 150 metres from surface to EOH averaging 2.81% TREO in KGKRC10

Stephens reports that samples from a further 28 holes are being analysed and expected to be released prior to the end of February.

The results from Phase 3 program aim to define a portion of Kangankunde’s current Mineral Resource Estimate (MRE) of 261 million tonnes grading 2.19% TREO as indicated category.

He says an updated MRE including the Indicated Resource category will be reported prior to the release of the Feasibility Study which is scheduled for the end of the March quarter while a Maiden Ore Reserve statement will be reported with the Feasibility Study.

Stephens also reports that processing plant engineering and mine development works are proceeding as planned.

He says: “The first assays from our Phase 3 drill program are again very encouraging, with grades in one 38 metre interval of 4.63% TREO (or 46,300 ppm TREO), and demonstrate that high grade rare earths are consistent across a ~300m section from surface of the Kangankunde deposit which is particularly noteworthy as we advance towards the Phase 1 mining and processing operation.”

“We are on track to report our upgraded MRE this quarter which will be followed shortly thereafter by our Feasibility Study. Kangankunde is uniquely positioned as one of the world’s largest rare earths projects, based on a globally recognised reporting code, and underpinned by exceptionally high grade in a market where grade is now clearly king. We anticipate a more regular flow of updates as the next two quarters unfold.”

Lindian Executive Chairman Asimwe Kabunga commented that the assay results from the Phase 3 drill program are an important body of work and key to the delivery of the Feasibility Study for the Stage1 mine development that is now underway.

“This Study, which will also include an Ore Reserve statement for Kangankunde for the first time, will allow us to very clearly define first stage capital expenditure and operational expenditure, and showcase what we expect will be a robust project that can rapidly deliver a new source of dependable supply of rare earths to processors and end users. As our quarterly report reiterates, we are well funded with lots of optionality to fund our Stage 1 plant and the initial early works phase which will be underway soon,” Kabunga says.

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

Once the remaining results are received from the assay laboratory, the resource model will be updated and applied to detail mine design and scheduling.

The areas 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 a) 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.

Non-Radioactive Mineralisation

Stephens reports that radionuclides uranium (U) and thorium (Th) continue to be low in all areas of Kangankunde Project.

“The Company has independent confirmation of the low radiation of mineralisation at Kangankunde, with independent government agency ANSTO Minerals (Australia Nuclear Science Technology Organisation) confirming that Kangankunde Rare Earth mineral concentrates are not classified as radioactive for transport,” he says.

Drilling programme status

The Phase 3 program has been completed with 45 RC holes for 4,666 metres and 3 core drill holes for 220 metres. The program was designed to give infill data for resource evaluation and mine planning of areas targeted to potentially provide the initial years of production.

In August 2023, Lindian announced its maiden Mineral Resource Estimate (MRE) for the Kangankunde Rare Earths Project in Malawi of 261 million tonnes averaging 2.19% TREO above a 0.5% TREO cutoff grade, and estimated in accordance with JORC 2012 guidelines.

Processing plant engineering

Lindian’s team is also progressing with:

• Determination of the preferred provider in relation to the tender of civil works contract(s), inclusive of works for the access road upgrade, bulk earthworks for the Plant & associated infrastructure, Tails Storage Facility (TSF) and Return Water Dam (RWD),

 • Finalisation of the tender for the supply of Process Plant and associated infrastructure for Engineering, Procurement, Construction and Commissioning,

• Resource model update and detailed mine design and mine schedule,

• Short-listing of power and fuel supply options while contract terms are being finalised for all stream of works.

In order to enhance revenue collection from the minerals sector, Malawi Revenue Authority (MRA) has taken over the responsibility of collecting mineral royalties from the Ministry of Mining.

MRA’s spokesperson Steven Kapoloma says in an interview that the tax collecting body will start collecting the royalties from April 1, 2024.

“In view of this, MRA has been engaging mining companies to sensitize them on the transfer of collection of royalties. Mining companies will be required to conduct a self-assessment and file royalty return upon producing minerals,” says Kapoloma.

The royalty return is a declaration of values and volumes of the minerals which a company has to submit to the Department of Mines. Mining companies then have to determine whether the minerals are for export or local use.

Kapoloma said:  “If the minerals are not for local use, a mining company is required to declare interest to the Department of Mines to export.

“The Geological Survey will then evaluate the mineral royalty base to determine value and volume, issue a certificate of inspection and seal the container.”

“The Department of Mines will then process a royalty return and file the processed return to MRA through Msonkho Online.”

”Upon payment of mineral royalty, the Department of Mines will issue an export permit to the exporter.”

The Ministry of Mining has been collecting mineral royalties from mining companies in Malawi and this mandate came from the Mines and Minerals Act.

Though the Ministry has been collecting mineral royalties, Kapoloma says there have been challenges as far as capacity is concerned.

He, therefore, explains that in 2029 the Mines and Minerals Act and the Taxation Act were amended to transfer the collection of mineral royalties from the Ministry of Mining to MRA.

“The collection of mineral royalties has been transferred to MRA because it has the capacity to collect both tax and non-tax revenues,” says Kapoloma.

Meanwhile, MRA is developing an ICT system to facilitate the payment of mineral royalties through e-payment.

The Mines and Minerals Act 2023 says a holder of a mineral tenement who contravenes the law by not paying royalties, upon conviction, shall be liable to a fine of K10-million plus double the value of the minerals, transport, sale, pledging or other transfer and, to imprisonment for two years.

Stakeholders in the minerals sector have urged the Malawi Government to promote local participation in the minerals sector if it is to adequately contribute to the economic development of the nation.

This comes in the wake of a Tanzanian consulting firm Azurite Management and Consultancy launching its operations in Malawi’s mineral sector at a colorful ceremony in Lilongwe, which was graced by Minister of Mining Monica Chang’anamuno.                                                                  

Azurite is a technical and service provider which is focused on providing general business support to local and foreign investors in sub-Saharan Africa especially in the mineral exploration and mining sector.

The company offers a number of services to resource firms including government liaison, tenement management, procurement and logistics, compliance and permitting, exploration management and country risk assessment.

However, in separate interviews stakeholders have questioned why government is at the forefront in promoting the foreign owned firm while there are local firms that have the required qualifications and experience in offering similar services to the minerals sector when also the Mines and Minerals Act (2023) prioritizes local participation in minerals sector.

Reads Section 159 of the Act: “(3) A holder of a mining licence required to have an approved goods and services procurement plan shall give preference to procuring goods and services from supplier and contractor entities owned by Malawian citizens, including equal opportunities to entities owned by Malawian women, provided such supplier and contractor entities offer terms as to prices, quantities, qualities and delivery schedules that are at least comparable to terms offered by non-Malawian contractors and suppliers to the maximum extent practicable consistent with efficient operations.”

“(4) A holder of a mining licence required to have an approved goods and services procurement plan shall demonstrate in its goods and services procurement plan how it intends to assist Malawian suppliers and contractors, including those owned or operated by women, to build the capacity to supply a greater part of its project’s goods and services needs over time.”

“(6) A holder of a mining licence shall not be hindered from procuring goods and services from providers outside Malawi that, to the satisfaction of the Authority, are available from only specialized suppliers and contractors.”

Coordinator for Chamber of Mines and Energy who runs a professional consulting firm for the minerals sector known as Geomine Services Grain Malaunga  said it is important for Malawi to promote local goods and services in the mining sector in order to maximize benefits of the sector to the local population and ensure sustainable economic growth with mining as a key enabler as stipulated in Malawi 2063.

He said: “It becomes a challenge when those goods and services are imported because they will obviously become more expensive than direct sourcing.”

“I encourage exploration and mining companies to engage local expertise in technical work. Local labour is cheap and capacity building will be enhanced.”

Coordinator for Natural Resources Justice Network Kennedy Rashid agreed with Malunga on the need for mining companies to prioritise locals wherever the capacity is available as stipulated in the Act.

Rashid said: “The engagement with local communities in other aspects across the supply chain where there is need is very important as it ensures that there is redistribution of benefits directly into the local economy.”

“What is required is for companies to also share their operational needs with local communities for the later to be aware of what is expected from them to participate directly in the sector.”

As part of its procurement and logistics package, Azurite supplies drilling consumables and safety gears and offer transportation logistics and car hire services.

Local Suppliers of similar services have also questioned the Malawi Government on why it is promoting a foreign firm to offer these services to the minerals sector while they are toiling to have business.

“The Tanzanian market is very difficult to penetrate. They have even made it harder for us to export our coal from the northern coalfields. I wonder why the Malawi Government is promoting a company from that country to come to Malawi and dominate in offering all services that are already being offered by locals,” said a supplier of mining equipment who opted for anonymity.

MD for Tamara Safety Products and Hardware Lloyd Phiri in a separate interview also urged Government to promote local suppliers to serve the minerals sector.

He said his shop is fully stocked to the extent that his Company can supply any personal protective gear to the sector.

”You have seen for yourself that in our shop there is everything in terms of protective gear. If Government can help us get deals with mining companies so much the better,” said Phiri.

But First Principal Secretary in the Ministry of Mining Joseph Mkandawire backed the coming in of the Tanzanian firm saying it will help the country explore its minerals with ease.

In an interview, Mkandawire expressed hope that the company will be able to bring into the country mining equipment which currently the country lacks.

He said: “We will benefit greatly from this firm not only from their technical expertise but equipment as well. They have equipment which can help extract minerals from 500 metres underground,” said Mkandwire.

During the launch of Azurite operations in Malawi, Minister of Mining Monica Chang’anumuno bemoaned the mining sectors minimal contribution to gross domestic product (GDP) which stands at one percent saying the sector has great potential but is not contributing much to the economy.

“We need to do more in order for investors to come into the sector to ensure growth,” she said.

We join stakeholders in the minerals sector in urging the Malawi Government to promote local participation in the minerals sector if it is to adequately contribute to economic development of the nation.

As mineral sector expert Dr Grain Malunga says in our article on Page 7, it is important for Malawi to promote local goods and services in the mining sector in order to maximize benefits from the sector to the local population and ensure sustainable economic growth with mining as a key enabler as stipulated in Malawi 2063.

We also feel Dr. Malunga’s sentiments are in line with the Mines and Minerals Act 2023 which as reported in the said article obliges resource firms to procure goods and services locally and only consider foreign or imported when Malawi does not have the required goods or services.

Resource firms involved in large scale mining ventures are mostly foreign owned and we feel one of the most important ways Malawians can benefit from such ventures is through getting employment and procurement contracts from these projects.

We, therefore, urge the Ministry of Mining to play a role in promoting locally owned enterprises to serve the mining sector and also Malawians to take up key positions in resource firms operating in the country.

It is through participation of locals in these firms that the Malawians will do away with the mentality by some that large scale mining is for rich foreigners, and any animosity towards foreign mining investors.

We, therefore, also join Dr Malunga in urging resource firms to engage locals wherever possible.

We understand that countries in the region have more developed mineral sectors compared to Malawi hence have a pool of experienced personnel including consultants, contractors and suppliers.

However, it is important that the resource firms invest in capacity building initiatives to ensure that the locals, who are the actual owners of the minerals, are equally competent in offering the required goods and services.

As Coordinator for Natural Resources Justice Network Kennedy Rashid is quoted in the article, what is required is for companies to also share their operational needs with local communities for them to be aware of what is expected from them to participate directly in the sector.

Foreign owned firms should not provide to mines what Malawians are capable of offering including mineral exploration and environmental and social impact assessment consultancies, media and government liaison, car hire services, supply of personal protective equipment, civil works and supply of mining equipment. 

The Malawi Government says it realised a total of K27.2-million from mineral sample royalties in the 2121/2022 fiscal year.

This is contained in In the 2022/23 annual economic report published by the Ministry of Finance and Economic Affairs.

The report outlines that exploration companies in Malawi exported 14.3 tonnes of rock chip samples and paid K19.5-million Kwacha in royalties to government.

The resource firms exported 7.8-tonnes of soil samples yielding the Malawi Government K7.7-million tonnes in royalties.

However, the report states that the major mineral exports for the country were gemstones and dimension stones which continued to be exported to a number of countries including India, China, Thailand, Sri Lanka, Hong Kong, USA, England, Italy, South Africa, Poland, Netherlands, and Switzerland.

In 2022, higher gemstone production was recorded amounting to 329.45 tonnes reflecting an increase of over 2000 percent compared to the production in 2021.

Gemstones produced included aquamarine, amethyst, citrine, garnet, rhodolite and ruby. Government, however, expresses concern in the report that despite high gemstone production, value addition is still very low implying potential revenues are lost as gemstones fetch lower prices in their rough (unprocessed) form.

“Investment in value addition would generate significant income, provide employment opportunities, and create business opportunities in jewellery production and selling,” reads the report.

Malawi is endowed with a wide range of mineral resources, some of which have been mined for decades, and some whose potential for beneficiation at medium to large-scale levels is recently being discovered.

Malawi 2063 identifies mining as a key driver to the economic development of the country. Mining is one of the priority areas under the industrialization pillar in the country’s effort to achieve the upper-middle income status by the year 2063.

“Mining has tremendous potential to support industrialization in Malawi, yet it has not been fully harnessed. The sector contributes only one percent to national income,” reads the report.

It says the mineral sector still faces great challenges resulting in the loss of potential public revenues due to unreported income and smuggling, coupled with environmental damage and health hazards due to sub-standard methods of mining and processing.

Further investments in the sector is challenged by a low power supply, a lack of reliable road and railway infrastructure, and other economic constraints. These factors increase overhead and production costs thus deterring investors and undermining the growth of the sector.

ASX-listed Sovereign Metals, which is prospecting for rutile and graphite at Kasiya in Lilongwe, says wide-spaced regional reconnaissance drilling outside its current Mineral Resource Estimate (MRE) area, has identified an 8km extension of mineralisation to the south, which remains open along strike and at depth.

MD for Sovereign Metals, Frank Eagar, says in a Press Statement that the results are testament to the world-class scale of the Kasiya deposit and demonstrate the potential for a future increase of the MRE for Kasiya, which is already the largest natural rutile resource, and second largest flake graphite resource, in the world.

Kasiya’s current MRE of 1.8 Billion tonnes, at 1.0% rutile and 1.4% graphite, comprises broad and contiguous zones of high-grade rutile and graphite that occur across an area of over 201km2.

Eagar says: “These drilling results re-confirm the significant scale of the Kasiya deposit with the strike now stretching over 37km long.”

“Sovereign continues to test the extent of regional mineralisation via low-cost hand-auger drilling, which has the potential to increase the already very large Kasiya resource.”

Sovereign reports that all newly defined mineralisation remains open at depth, due to the limitations of the hand-auger drilling method, but are expected to continue to the Saprock boundary, normally between 20 and 30m vertical metres from surface. The multiple mineralised zones identified remain open along strike, both to the north and south including;

· 14m @ 1.03%, including 2m @ 1.35%, rutile from surface

· 17m @ 1.01%, including 2m @ 1.42%, rutile from surface

· 9m @ 0.93%, including 2m @1.58%, rutile from surface

· 12m @ 1.31%, including 3m @ 1.97%, rutile from surface

· 13m @ 1.02%, including 3m @ 1.16%, rutile from surface

 · 12m @ 1.02% rutile & 4.5% graphite, incl. 2m @ 1.41% rutile, from surface

Results of the Pre-Feasibility Study (PFS) released in late 2023 demonstrated Kasiya’s potential to become the world’s largest rutile producer at an average of 222kt per annum and one of the world’s largest natural graphite producers outside of China at an average of 244kt per annum, based on an initial 25 year life-of-mine (LOM).

The Kasiya PFS indicated compelling economics with a post-tax NPV8 of US$1.6 Billion and a post-tax IRR of 28%. This long-life, multi-generational operation was modelled to initially generate over US$16 Billion of revenue and provide an average annual EBITDA of US$415 Million. The PFS modelling was limited to 25 years with initial Probable Ore Reserves declared of 538Mt, representing only 30% of the total MRE.

The PFS confirmed Kasiya as a major critical minerals project with an extremely low carbon footprint, delivering major volumes of natural rutile and graphite, while generating significant future economic returns to Malawi.

The PFS indicates that Kasiya will be a simple and conventional operation employing traditional and well-developed processes used across the globe on mineral sands and graphite operations.

The proposed large-scale operation will process soft, friable mineralisation mined from surface. The project has excellent surrounding infrastructure including bitumen roads, a high-quality rail line connecting to the deep-water port of Nacala on the Indian Ocean, and hydro-sourced grid power.

Graphite co-product

Kasiya’s graphite co-product Mineral Resource Estimate (MRE) is 1.8Bt at 1.4% graphite, containing  24.4Mt of graphite, which makes it one of the largest natural graphite deposits globally. 

The PFS indicates that graphite rich pre-concentrate will be produced from the light fraction of the gravity spiral tails, and processed in a separate graphite flotation plant to produce a high-quality flake graphite co-product. Because graphite will be a co-product from rutile production, it will have a very low production cost compared to graphite-only projects, as shown in the Project’s Expanded Scoping Study.

A very coarse-flake and high-grade graphite product, at 96% Total Graphite Concentrate (TGC) can be produced via the simple flowsheet. This product has over 60% of  large to super-jumbo fractions (+180mic) with overall graphite recovery from the raw sample of 62%.

“As well as being very coarse flake, the Kasiya graphite is also highly crystalline and of high purity. These are both important features required for use in lithium-ion battery anodes. The high crystallinity means that the graphite will have high electrical conductivity – a key requirement. High purity means the material will be easier to upgrade to 99.95% TGC, the minimum requirement for lithium-ion battery anodes,” says Eagar.

Malawi President highlights Kasiya in SONA

Meanwhile, Malawi’s President Dr Lazarus Chakwera has hailed progress of the Kasiya Rutile-Graphite Project.

Chakwera said in his State of the Nation Address (SONA) presented in the National Assembly at the opening ceremony of the 2024/25 Budget Meeting: “Madam Speaker, my progress report on wealth creation efforts in mining would not be complete if I omitted the progress on the Kasiya Rutile Project.”

“As I speak, Sovereign Metals Limited and Rio Tinto have entered into a partnership, and now the project is undergoing a Definitive Feasibility Study and an Environmental and Social Impact Assessment, which mark a crucial step in advancing the Kasiya Rutile-Graphite Project in Malawi.”

“When all these operations begin to yield a harvest, it will be a game changer for Malawi not only economically, but also geopolitically, for we have every reason to expect that we will become less dependent on outsiders for any resources to build our roads, our hospitals, our bridges, our schools, our universities, our airports, and more. The work we have done this year to restructure the sector is great progress, and we will build on it to keep our economic recovery going.”

Sustainable and ESG driven

Eagar says that sustainability is a vital element of Sovereign’s strategy for Kasiya, such that the company is committed to making informed choices that improve its corporate governance, financial strength, operational efficiency, environmental stewardship, community engagement and resource management.

The project aims to meet the requirements of international guidelines and standards, including the International Finance Corporation (IFC) Standards on Environmental and Social Sustainability (IFC 2012), the World Bank Group Environmental, Health and Safety Guidelines (WBG 2007), the Equator Principles (Equator Principles Association, 2020) and the International Council on Mining & Metals Principles.

Eagar says the Kasiya Project will be designed considering both the Equator principles and Scope 1, 2 and 3 emissions under the Green House Gas protocol, so that the design meets high Environmental, Social and Governance (ESG) standards from the outset.

“Access to hydro-generated grid power and a solar power system to be installed on site will ensure low carbon power supply for the project, and the use of predominantly rail rather than road transport for rutile and graphite products will further help give the mine a low carbon footprint,” says Eagar.

The planned operation contemplates a closed, zero discharge process water circuit, and tailings storage facility designed for chemically benign tailings which will be rehabilitated and restored progressively.

Meanwhile, Sovereign continues to undertake several initiatives to assist in the development of Malawi and its local communities.

“The Company aims to become an industry leader in social responsibility having successfully worked with communities in Malawi over the last decade who remain highly supportive and are well positioned to benefit from the development of new mining projects.

ASX-listed resources group DY6 Metals has announced that it has submitted five exclusive prospecting licence (EPL) applications totalling 838[LK1] .2km2 in  Malawi to the Ministry of Mining for tenements it considers to be highly prospective for rare earths and lithium.

The Company is in the process of submitting an Environmental and Social Management Plan for each of these new applications, and on the basis these are acceptable, the licences should then be granted by the Ministry.  

CEO for DY6 Mr Lloyd Kaiser says in a statement that the licence areas under application are “Mzimba” (West, Central and South) and “Karonga”.

He explains that the recent applications will expand the Company’s overall strategic footprint in Malawi to a total 1,080 km2.

Meanwhile, the Company’s geological team has undertaken a reconnaissance field visit over parts of the licence application areas during December and February

Mr Kaiser reports that seven random reconnaissance rock chip samples from the Mzimba license areas have been submitted for laboratory analysis in South Africa.

He says: “We are very excited about these four strategic lithium license applications in northern Malawi. Field reconnaissance has identified several pegmatite systems, which are currently being worked by artisanal miners for a range of minerals, including the gemstones tourmaline and beryl, and lithium micas.”

Upon granting of the EPL, the exploration team will undertake extensive geochemical programs and detailed geological mapping over the  four new licence areas  in the coming months.”

Mzimba Lithium Project

Located in the Mzimba district of central Malawi about 200km north of the capital Lilongwe, the Mzimba Project covers an area of approximately 710.5km2 extending through three separate tenements namely: Mzimba West, Mzimba Central and Mzimba South.

A desktop study identified two areas for field inspection by DY6 staff and a field reconnaissance program was conducted over parts of the tenement area during November 2023 and February 2024. The first area is 65km north of Mzimba Township covering portion of the Traditional Authority Mtwalo, Chindi and part of Inkosi Paramount Chief M’belwa.

Reports indicate that regional geological mapping and reconnaissance surveys were conducted in the area by British Geological Survey in the 1980’s, and Malawi’s Geological Survey Department. The results indicated that Mzimba district has potential for a range of gemstones (such as aquamarine, tourmaline, beryl, and ruby) and industrial minerals occurring in pegmatites.

Karonga Lithium Project

The Karonga Lithium Project is located about 440km north of the capital Lilongwe and covers a total area of 36.2km2. The area can easily be accessed using the Karonga-Chitipa M1 Road turning to the west at Kasikizi School signpost along the M1 Road. DY6 also secured a 6-month option over a granted licence adjacent to the company’s recent EPL.

During late November, DY6’s exploration team undertook a reconnaissance field visit  in the Karonga region, predominately to the south of the area selected that adjoins the recent licence application.

The Karonga area is associated with a series of N-S trending ridges with metamorphic Basement complex rocks commonly identified as windows within the Karroo System which overlies the basement. The Karroo System units are typically sandstones with carbonaceous shales formations. Pegmatite float material was noted in the Mwesa River to the south of the Company’s Karonga license application, which cuts NE-SW through the area.

Samples collected from the Karonga area were taken to Geological Survey Department for preparation. DY6 considers the Karonga Lithium Project to host the same underlying geology as the areas inspected to the south.

DY6 PURSUES TUNDULU RARE EARTHS PROSPECT IN PHALOMBE

Meanwhile, DY6 Metals has also submitted an exclusive prospecting licence application for 91.5km2 of the Tundulu carbonatite ring complex in southern Malawi’s district of Phalombe, which has significant potential for the prospecting of rare earth elements (REEs).

Results of shallow historical drilling at Tundulu undertaken by the Japanese International Cooperation Agency (JICA) in 1988 up to a maximum depth of 50m included:

• 41m @ 3.7% TREO, from 8m (JMT-22);

• 17m @1.3% TREO, from surface and 14m @1.1% TREO, from 21m (JMT-14);

• 11m @ 2.2% TREO, from 17m and 14m @ 4.1% TREO, from 36m (JMT-17); and

• 14m @ 1.1% TREO, from 3m (JMT-07).

Mr Kaiser reports that the Company’s geological team recently undertook reconnaissance field visit over parts of the licence application area and samples have been submitted for laboratory analysis in South Africa.

Mr Kaiser says: “We are very excited about this strategic licence application in southern Malawi. Tundulu is a known carbonatite ring complex close to our flagship HREE Machinga Project with an interesting profile of bastnaesite and apatite with abundant REE mineralisation, and easily accessible by road. Tundulu will complement our existing REE projects, Machinga and Salambidwe. While the Company waits for the licence to be granted, the focus of the exploration team will be on undertaking a detailed geological and geophysical review of this new licence over the coming months.”

DY6 has completed a maiden exploration-drilling program for 4 ,543m at the Machinga REE and Niobium Project in southern Malawi.

Besides, the Company is prospecting for REEs and Niobium at Salambidwe in Chikwawa in the southern Shire Valley area where it has completed a comprehensive geochemical and geophysics program.

DY6 is also conducting exploration for platinum group metals and copper at the Ngala Hill prospect in Southern Malawi.

It is unfortunate that despite the minerals sector being touted as a priority sector to support industrialisation in Malawi 2063, the Ministry of Mining continues to be neglected in terms of funding.

As reported in our article on Page 8, the Ministry of Mining’s provision in the budget continues to be much lower compared to other Ministries such as Energy and Natural Resources despite the huge responsibility that the Ministry has, which is to efficiently govern the sector to maximise revenue generation.

We agree with Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid quoted in the article that such underfunding to the Ministry signifies that mining is not a priority in the budget.

As Rashid says this is very unfortunate because it is through investing in the sector that we can create a vibrant mining industry capable of financing other social sectors such as health and education.

With this underfunding, the Ministry will certainly fail to fulfil plans and mandatory duties including; managing the development of mineral resources; monitoring and regulating operations of the mining industry; and monitoring of seismic activities.

This implies that the sector will remain in a mess with illegal mining continuing as the Ministry will fail to finance operations of Mines Officers in mining districts.

Therefore, as NRJN Programmes Coordinator Joy Chabwera suggests in the article, it is important that Government develops a budget for the next financial year that will enhance the mining sector’s performance and impact in areas of; infrastructure development, capacity building, transparency and accountability mechanism, community development, environmental protection, stakeholder engagement and consultations, research and data collection and, diversification of economy.

In order to ensure sustainable growth of the industry, resources should be allocated for capacity building programs aimed at enhancing the skills and knowledge of local communities, government officials and industry stakeholders.

Funds should also be allocated for the operationalization of the state owned mining company which government established to invest in mining projects and partner private firms in mining ventures.

We also propose that Government establishes a revolving fund specifically for artisanal and small scale miners (ASMs) to assist them with capital to purchase mining and processing equipment.

We believe that this revolving fund will help in increasing productivity in the ASM subsector and assist in poverty alleviation by aiding the ASMs to graduate into mechanised miners.

The only way Malawi’s mining sector can develop is by assisting ASMs to develop into cooperatives that should grow into large commercial entities.

Mine drainage or dewatering refers to the depressurization of water-bearing formations-such as aquifers which may occur over, under or within the material being exploited or quarried. This is done for different reasons that start and usually end with economics, but include absolute mining feasibility, operational efficiency, slope stability, ground movement and safety.

Mine drainage involves a wide variety of ground-water problems but application of evaluation techniques usually brings successful results. The determination of reliable aquifer characteristics in terms of-transmissivity or the hydraulic conductivity and the coefficient of storage together with knowledge of the aquifer geometry and the nature of boundary conditions, as determined by field exploration and testing methods, forms the basis for effective planning of mine dewatering systems.

There have been recent advances  in aquifer modeling through the use of GIS, modelling tools, have increased the geoscientists  ability to provide reliable quantitative evaluations in the complex geologic settings . Early integration of dewatering programs with the exploration, geotechnical, mine planning and operational efforts can have significant economic benefit.

     Importance of Mine Dewatering

• To effectively lower the groundwater table outside of pits
• To reduce water inflow into pits, or remove water from pits.
• To remove excess water from unconfined aquifers.
• To eradicate the negative impacts associated with excessive water on mining site.
• To prevent mine flooding to maintain worker safety and avoid environmental damage.
• To ensure stability of mine walls during and after excavation
• To optimize mine production and reduce operational costs

                        1. Hydrogeological Conditions

The hydrogeologic evaluation of ground-water problems may not be difficult if the geology is clearly understood. Many situations, however, require extensive testing and evaluations rather than reliable projections of ground-water control. Solid rock aquifers,aquicludes or aquitards, in which water movement is through fractures, faults,joints,or fissures, tend to be the most difficult to evaluate. Unfortunately, investigations of many mining prospects concentrate on the ore that the potential for mine drainage problems is neglected until late in the planning stage.

The potential impact of ground water inflow to a mine can often be assessed at the pre-feasibility study stage.  It is very important that hydrogeological investigation is started at the same time as the geological investigation.

The hydrogeologist can often determine the extent of ground-water problems by reviewing existing borehole exploration logs. Unfortunately, exploratory boreholes are usually drilled to delineate and evaluate ore bodies, and insufficient attention is given to logging and classifying unconsolidated materials and water-bearing rocks. With minimal additional expense, exploration boreholes can be used to show depths of unconsolidated sediments, classification and lithology of bedrock, zones of caving and water production from an air drilling operation.

                      2. Properties of Water bearing Formations in a Mine

 Evaluations of mine ground-water problems have in common the determination of certain properties of the water-bearing formations and their hydrogeologic environment.

                      (a) Boundary Conditions.

 Boundary conditions include sources of recharge, such as surface water bodies or leakage through other formations, or barrier boundaries such as impervious layers on valleys, which represent no-flow or lesser flow conditions in part of the affected area. Recharge conditions are improperly understood during mine excavations

                       (b) Local Water Budget.

The local water budget of an aquifer is the long-term allocation of the available inflow water–from precipitation, regional flow or recharge sources-to components of natural or artificial discharge. The water budget determines the perennial or seasonal replenishment that a mine drainage system will have to handle after a requisite amount of local aquifer storage is depleted. In many instances, the water budget analysis is critical to the long-term water supply available to the ore process plant. The planning, execution and evaluation of such tests, and the determination of the adequacy of data also forms fundamental basis.

                         (c) Aquifer Coefficients. Transmissivity (T)

The measure of the ability of the entire thickness of a unit of aquifer to transmit water from place to place in response to a unit gradient. It is the algebraic product of hydraulic conductivity and aquifer thickness. The Coefficient of Storage (S) represents the amount of water released from (or added to) storage in the pore space of a unit volume of rock in response to a unit of head change. Reliable values for these coefficients permit mathematical projections by standard equations of aquifer behavior in response to pumping. Particularly important in many mining situations is the degree of uniformity of these properties–vertically and horizontally within the area influenced by mine water pumping.

.                           3.  Conclusion

Geologic and soil formations at the mine will dictate the type and application of water control systems during dewatering process. The hydrogeologist can review existing data, prescribe testing procedures and specify methods for dewatering open of the mines. These methods have their respective limitations; but with an understanding of the geologic and hydrologic conditions of the mine, dewatering is very effective, feasible.