Mining & Trade News

A high-powered parliamentary delegation led by the Honourable Tiaone Hendry recently conducted a site visit to the Mkango Rare Earths Songwe Hill Project in Phalombe District, underscoring the growing national importance of Malawi's critical minerals sector. The delegation from the Parliamentary Committee on Natural Resources, Energy and Climate Change was accompanied by Director General of the Mining and Minerals Regulatory Authority (MMRA) Mphatso Chikoti, Acting Principal Secretary for Mining at the Department of Mining in the Ministry of Energy and Mining Andrew Chisamba,  Deputy Director of the Geological Survey Department Kondwani Dombola, and Phalombe District Commissioner Yobu Makina Gama. The visit was aimed at assessing the scale of exploration progress to date, understanding the project's logistics, and reviewing the steps required to transition the Songwe Hill Rare Earth project into a world-class mining operation.

A Project of National Strategic Importance

Committee Chairperson, Honourable  Hendry, expressed strong enthusiasm for the project, describing the Mkango Songwe Hill Rare Earths Mine as one of Malawi's flagship projects in the mining sector. She noted that given the significant exploration milestones already achieved, the time had come to advance the project into the Front-End Engineering and Design (FEED) and construction phases, with rare earth carbonate production to follow in the near future. "Commencement of production is paramount," Hon. Hendry stated, emphasising the project's potential to deliver transformative economic benefits to Malawi through employment creation, foreign exchange earnings, royalties, tax revenues, and community development.

Advanced Project Credentials

In its presentation to the delegation, the Mkango Rare Earths team outlined the project's impressive credentials. The Songwe Hill deposit is one of a very small number of rare earth projects globally to have progressed to the stage of an NI 43-101 compliant Definitive Feasibility Study. The project also holds Malawi Government’s Malawi Environmental Protection Agency (MEPA) approved Environmental, Social and Health Impact Assessment (ESHIA), completed in full compliance with IFC Performance Standards — a benchmark that positions it favourably with international financiers and development partners. A further landmark was reached in July 2024 with the signing of the Mine Development Agreement (MDA) with the Government of Malawi, which established the technical, fiscal, and legal framework governing the project's development.

FEED Underway, Construction Targeted for 2027

Mkango Rare Earths confirmed that it is currently advancing through the FEED phase — a detailed engineering process designed to de-risk mine construction. The FEED is expected to be completed within nine months, after which construction of the mine facilities, beneficiation plant, and hydrometallurgical chemical plant is anticipated to begin. Underpinning this progress is a Project Development Funding Agreement with the U.S. International Development Finance Corporation (DFC), the U.S. government's development finance institution. Under this agreement, Mkango has secured US$4.6 million in reimbursable funding to fast-track the FEED and value engineering studies. Total investment is estimated at US$400 million and construction is targeted to commence in 2027. Financing is being secured from a combination of financial institutions, development partners, and capital markets — including a planned flagship listing on NASDAQ and a forthcoming listing on the Malawi Stock Exchange.

Three Key Government Requests

Mkango's Country Director, Mr. Burton Kachinjika, presented three specific requests for government support critical to the project's advancement. First, the project will require 25 megawatts of uninterrupted power supply, together with the construction of a 95-kilometre high-voltage power line from Blantyre to the Songwe site in Phalombe. Second, a paved road from Migowi to the mine site will be essential to support construction and operational logistics. Third, the company called for a streamlined pre-construction permitting process to avoid delays to the construction schedule. Acting Principal Secretary for the Department of Mines, Mr. Andrew Chisamba, responded positively to all three requests, assuring the committee and Mkango that full government support would be provided. He also highlighted ongoing national electricity generation initiatives and referenced funding provisions for the high-voltage transmission line.

Community and Parliamentary Support

The visit concluded with strong expressions of support from both parliamentarians and local community leadership. Traditional Authority Maoni conveyed the eagerness of the local community to see production commence, highlighting the anticipated economic and social benefits for the region. Hon. Hendry urged Mkango Rare Earths to obtain all necessary licences without delay and to engage proactively with the MMRA to facilitate a smooth transition into construction and production. She emphasised that the project's contribution to national priorities — including job creation, foreign exchange, and community development — made swift progress essential.

A Critical Minerals Project with Global Reach

Rare earth elements are indispensable to modern technology, with applications spanning advanced electronics, renewable energy systems, electric vehicles, and aerospace. As the global transition to clean energy accelerates, demand for rare earths continues to rise sharply, making reliable and ethical supply chains a strategic priority for governments and industries worldwide. The Mkango Songwe Hill project is positioned to play a significant role in meeting this demand. Upon reaching production, the mine will produce a purified, high-value Mixed Rare Earth Carbonate (MREC) in Malawi, supplying sustainable export quantities to markets across Europe, North America, and Asia — and placing Malawi firmly on the map as a key contributor to the global critical minerals supply chain.

Malawi is increasingly attracting attention from international industries looking for the reliable supply of critical minerals. One example is the Kasiya Rutile and Graphite Project, which has drawn interest from global mining companies, lenders and commodity traders. While this growing international interest is positive for Malawi, it has also raised questions about how large capital intensive mining projects are developed and what partnerships such as offtake or marketing agreements actually mean.

Mining projects typically take more than a decade to move from mineral discovery to production. During that time, companies must complete detailed engineering studies, assess the environmental and social impacts over multiple seasons, obtain environmental approvals, secure financing and negotiate agreements with communities and governments.

One of these steps to achieve finance, is securing future buyers and develop markets for the products a mine will produce. These are known as offtake or marketing agreements. 

Recently, the company developing the Kasiya project announced a non-binding memorandum of understanding with Mitsui & Co., a major Japanese trading and investment company, indicating its interest in purchasing up to 70,000 tonnes of rutile per year once the project begins production.  

It is important to understand what such agreements mean. 

An offtake agreement does not transfer ownership of Malawi’s minerals. The resources remain governed by Malawian law and can only be mined once all government approvals are granted.

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.  

Such arrangements are common in the mining industry. 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.

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

For Malawi, these partnerships represent growing international confidence in the country’s mineral potential and its ability to participate in global supply chains for critical minerals.

The most important point is that these agreements are only one step in a long development process. Before mining begins, the project must still complete feasibility studies, environmental approvals and licensing processes required under Malawian law.

As Malawi’s mining sector continues to grow, understanding how these processes work will help ensure informed discussions about how the country can benefit from its natural resources.

Frank Eagar is Managing Director and CEO of Sovereign Services Ltd

By Jacqueline Monjeza

ASX-listed Fortuna Metals has announced that metallurgical test work program is underway at the Mkanda rutile and graphite Project in Mchinji.

CEO Tom Langley explains that a processing consultant, Mineral Technologies. will process a 5-ton bulk sample through a conventional mineral sands flowsheet aiming to produce a high quality rutile concentrate of over 95% titanium.

Langley says: “We are continuing to push our exploration efforts at the Mkanda rutile project as we await drilling results for the remaining more than 90% of drill-holes still to come in. Completing metallurgical test work is a key step to fast tracking potential offtake agreements with high quality customers in the titanium sponge / titanium metal market used in aerospace, defence, and advanced manufacturing.”

“We aim to follow the same exploration and development pathway as our neighbor Sovereign Metals’ has with the Kasiya deposit but shorten the timeframe. We have proven this by rapidly drilling Mkanda on a 400m x 400m grid within 3 months since acquiring the project, to allow us to potentially put an inferred resource out in the second half of this year.”

“The Company has embarked on a busy first quarter with the management team in country this month having attended the 121 and Indaba Mining Investment Conference in Cape Town to meet with existing and potential new investors plus potential offtake partners. We made multiple visits to our assay laboratories in Cape Town and Johannesburg ahead of a busy year of drilling. We look forward to updating the market with a consistent flow of rutile, graphite and rare earths drilling results throughout the first and second quarter of 2026.”

Mineral Technologies will process the 5-ton bulk sample through a conventional mineral sands flowsheet aimed at producing a high quality rutile concentrate containing more than 95% titanium.

The 5-ton sample is collected within the several large coherent high-grade rutile anomalies identified across an area of more than 25km2. The bulk sample plays a key role in guiding mining studies for the first phase of mining the shallow high-grade mineralisation.

Further bulk sampling also takes place as project progresses to better validate processing characteristics to be used in feasibility studies and mine planning.  

The company says there are still 534 shallow 0-2m composite assays to be returned that will further shape the potential size of the 25km2 high grade greater than 0.95% anomalies identified to date.

The results guide the selection of drill holes that are prioritized for analysis. Selective assaying of high grade areas first increases the turnaround time for assays leading to a quicker potential maiden inferred resource estimation to occur in the second half of 2026.  This is a quick and cost-effective strategy for first pass reconnaissance drilling program designed to highlight the wide spread nature of the rutile mineralisation at Mkanda and to identify areas of the highest grade which will be the focus of the 2026 drill campaigns. 

By Wahard Betha

The Department of Mining in the Ministry of Energy and Mining has recorded a decline in revenue collected from the minerals sector in light of the raw mineral export ban, which the Government announced within the financial year.

The 2026 Annual Economic Report indicates that the Department collected about K70-million in revenue against the total projection of K665.5-million in the 2025/26 financial year

The Mining and Minerals Regulatory Authority (MMRA), which has taken over some revenue collection duties from the Department, is projected to collect about MK2, 2-billion and MK2,5-billion in the 2026/27 and 2027/28 financial years respectively.

The report states that in the fiscal year, the Authority issued 1,222 licenses, finalized subsidiary regulations, upgraded the Mining Cadastre system towards an online platform, and enhanced financial accountability systems.

It says: “The Malawi Mining Investment Company (MAMICO) has continued building institutional capacity, undertaking geological surveys, feasibility studies, and investor engagement to advance mineral development opportunities.

“Meanwhile, over 50.0 percent of the required analytical equipment has been procured for the National Mineral Laboratory Complex.”

“Upon completion, the laboratory will strengthen mineral testing, valuation, and certification capacity, thereby enhancing transparency and governance in the sector.”

The report says that progress was also made in reviewing the Artisanal and Small-Scale Mining Policy, strengthening cooperative capacity, and advancing geological exploration. Surveys identified promising deposits of rare earth elements, graphite, limestone, copper, and other strategic minerals, while ongoing research supports industrial minerals and fertilizer production.

It also says regulatory and safety oversight was enhanced through legislative reviews, environmental monitoring, inspections, and mine safety campaigns.

Despite these advancements, challenges persist, including illegal mining, mineral under valuation, smuggling, export of raw minerals, limited value addition, infrastructure gaps, and funding constraints.

However, ongoing investments in roads, railways, and power infrastructure are expected to improve the sector’s operating environment in the medium term.

Programs to be undertaken in the 2026/27 financial year to foster productivity, transparency, and accountability of the sector include: operationalization of the Malawi Mining Investment Company (MAMICO) and conducting Geological Mapping which will be produced at various scales to highlight potential mineralization of critical and high-value minerals.

Government will also conduct Mineral Exploration and Evaluation as well as carry out Applied Geoscientific Research and Laboratory Services which will focus on achieving import substitution,

It was in the wee hours of a Saturday when one enjoys a good sleep after a busy week when I was awakened by a strange call. It was a call from quite an unfamiliar number and it startled me that It was coming in such an odd hour:  “Bwana Chimwala!” That was the voice from the other end.  “Yes sir,” I responded with a lousy deep voice as I was half asleep.

“I am calling from Kayelekera Mine. I am one of the employees at the mine. Sorry to disturb your sleep. I want to explain to you what is happening here.”

“It is okay Sir. I am already awake, Go ahead.” I responded shedding off the sleep mood in a flash after hearing that the caller wanted to tell me a story involving my duties as a journalist.

What followed was his ordeal. He said he was speaking on behalf of fellow mine workers at Kayelekera Mine. He said he worked at Kayelekera during the previous operations when the mine was under Australia’s Paladin Africa who later halted operations in 2014. He re-joined the mine and is now working under Lotus Africa.

The man explained that the working conditions were far much better under Paladin than now citing that other mine workers are leaving for greener pastures at upcoming local mining projects such as Kangankunde and outside Malawi.  For example, he alleged that Paladin used to enrol mine workers and their families in a medical scheme while Lotus only caters for the individual worker leaving out the family members.

He also complained that the salaries for Malawians at the mine are miserable as compared to foreign employees alleging that foreign technicians from countries such as Zimbabwe, Tanzania and Zambia get in excess of K15-million take home pay at Kayelekera but Malawians of similar grades get less than K1-million after tax deductions.

I tried to reason with him that it could be that locals are receiving lower salaries because the Company is following the country’s labour laws in deciding their perks while foreigners are paid better salaries because they are recruited as expatriates.

The man further pointed out that during the Paladin days, there were weekly flights organised by Paladin to ferry employees originating from other regions to and from Blantyre and Lilongwe to visit their families. This arrangement is not there anymore during these Lotus days when employees are forced to rent substandard houses at Karonga Boma as they are not allocated accommodation at the mine.

But what mainly captured my interest were his complaints about meals provided by the Company: “Akungotidyetsa bonya ndi nyemba basi, Malume” meaning “they are only giving us meals with bonya and beans as relish, Uncle.”

In Malawi, the name “bonya” is given to very small dried usipa fish. Usipa is a small sardine like freshwater fish endemic to Lake Malawi widely consumed in Malawi and Mozambique.

This is the cheapest fish found on the market whose consumption  is mostly associated with low-income families though average and high income earners would still take bonya as a matter of choice not as part of a daily menu.  During political campaign periods, opposition politicians always accuse the ruling of feeding people bonya implying that their economic policies are leaving the masses in poverty.

Eating daily meals of beans is mainly associated with prisons because most of the prisons are known to provide maize meal (nsima) with beans to prisoners as a daily meal.

What this implies is that the miners feel they are provided with substandard meals This is what a Malawian miner could not expect understanding that mining is a lucrative business with prices of uranium mined at Kayelekera skyrocketing on the global market and major shareholders of the mining company living in luxury in global financial capitals.

Outsourcing is the answer

When Paladin Africa operated the Kayelekera Uranium Mine, Mota-Engil was the mining contractor and worked alongside other contractors in executing mining works. There were also a number of foreign and local service providers and suppliers.

However, when Lotus made the investment decision to reopen the mine, they opted to go into owner mining implying there is no mining contractor hired. The Company is only working with contractors handling smaller assignments, key suppliers, and service providers in different areas.

Reacting to the news, I said that this is not the right method because in order to better share benefits from the mine, Lotus needs to engage a mining contractor that must take on board a Malawian joint venture partner to contribute in meeting local content provisions and facilitate technology transfer to local contractors.

But a local director of Lotus was quoted in the Press arguing that it would be profitable for the Company to embrace owner mining at Kayelekera. But are all these negative issues not coming out due to this more profitable owner mining model?

I believe Lotus is a company with integrity that is pursuing sustainability principles in pursuing its projects. My plea to the directors is that while profit is at the core of any business, it is important to outsource most of the works and services to uphold the quality while not compromising on efficiency.

I believe if a small-scale contractor is hired just to undertake emergency works around Kayelekera, it cannot take time to repair the bridge damaged due to overflow of Sere River or any damaged infrastructure in the locality that the Company wants to repair as part of Corporate Social Responsibility.

I believe if a catering company from Karonga is hired to provide meals to the mine workers at Kayelekera, they would not be these bonya and beans menu complaints.

I believe if a media or public relations firm is recruited at Kayelekra, it would work with Management to make sure that the Company maintains high standards on different areas of operations to avoid these disgraceful allegations on bonya.

The local Kayelekera workers are certainly singing better songs of the Paladin days compared to the current scenario because Paladin was outsourcing most of the works and services and I think it is important for Lotus to emulate this. A contractor or a consultant will perform to the best of its capability in order to satisfy the master. This helps in improving and upholding quality and efficiency of operations.

Malawi needs a better Kayelekera than in Paladin days

To wrap it all, Malawi needs a better Kayelekera than in the Paladin days. If Paladin was able to sponsor a local football club in Karonga, Paladin FC, any Malawian of good will would appreciate If Lotus, as a Karonga-based corporate citizen of goodwill, starts sponsoring Karonga United Football Club. This is a club which has been performing well in Malawi’s elite league despite financial struggles.

If Paladin was offering scholarships to selected Malawian doctors to train in Australian universities in treating cancer, which is associated with radioactivity resulting from exposure to uranium, any Malawian of good will would appreciate if Lotus continues with such a programme.

When former President Lazarus Chakwera officially inaugurated the Kayelekera Uranium Mine, he called for a better Kayelekera than the Paladin days that would adequately benefit Malawians under Lotus. Definitely a better Kayelekera is a Kayelekera where local employees enjoy equal benefits with foreigners of the same grade doing similar work.

Definitely a better Kayelekera does not come with a daily menu of nsima with bonya  and beans for mine workers. Daily bonya meals are a myth for miners of uranium who would not be comfortable to encourage their children to work hard in school and be employed in mines with.such conditions.

 ASX-listed Tusker Minerals has identified high-grade titanium mineralisation dominated by rutile across its Mzimba exploration licences in northern Malawi following early-stage reconnaissance sampling.

The results come from a review of the Company’s initial reconnaissance soil and rock chip sampling program, supported by geochemical analysis and mineralogical testing using advanced technologies, and represent an important early validation of the project’s prospectivity.

 CEO Cliff Fitzhenry commented: “We are very encouraged by these early-stage results from the Mzimba Project. Initial reconnaissance sampling has returned strong TiO? values across a relatively small portion of the licence area, with nearly half of the soil samples exceeding 1% TiO? and peak assays reaching 1.88%.”

“Importantly, XRD mineralogical analysis confirms that the titanium is hosted predominantly in rutile and, to a lesser extent, anatase, with no ilmenite identified in the analysed samples.

The project area is underlain by rutile-bearing high-grade metamorphic rocks of the Irumide Belt, similar to those that host major residual rutile systems elsewhere in Malawi.

With more than 700 km² of largely unexplored tenure, Fitzhenry said Tusker sees significant potential to expand these results as it advances follow-up sampling and auger drilling programs.

He said: “Alongside exploration progress at our Central Rutile Project in Cameroon, Mzimba forms part of Tusker’s growing portfolio of highly prospective rutile exploration assets in Africa.”

“As global titanium demand accelerates in green technologies and high-performance industries, these assets strengthen our portfolio and offer substantial long-term value for shareholders. These early results provide strong encouragement for further exploration, and we look forward to systematically evaluating the scale potential of the Mzimba Project.”

 Initial reconnaissance sampling returned encouraging titanium results, with 27% (11/41) of soil and rock-chip samples assaying above 1% TiO2 (increasing to 47%, 8/17, when considering only the soil samples). XRD mineralogical analysis on nine samples confirmed the titanium is hosted predominately in rutile, the highest-value naturally occurring titanium dioxide mineral, with minor anatase also present - both forms of high-purity TiO2. Importantly, no ilmenite was detected in the analysed samples, indicating that the titanium mineralisation is largely composed of high-purity TiO? minerals dominated by rutile and anatase.

 While assays measure total chemical TiO? and XRD analysis identifies the titanium-bearing mineral phases present - the combination of results highlight the strong prospectivity of the Mzimba project and its geological similarities to world-class residual rutile systems such as the Kasiya deposit in Lilongwe. With only 7% of the 710 km² licenses explored, Fitzhenry reported that follow-up programs will aim to define resources and assess recovery.

The Mzimba licences are situated within a highly prospective geological setting for rutile mineralisation, underlain by mica schists and paragneiss of the Irumide Belt. These high-grade metamorphic rocks are favourable source rocks for rutile and are comparable to the metamorphic protoliths that host the Kasiya deposit 200km to the south. This favourable regional geological framework enhances the prospectivity of the Mzimba licences for large-scale, near-surface residual rutile mineralisation.

 Rutile is the highest value naturally occurring form of titanium dioxide and is a critical mineral used in pigments, aerospace alloys, welding electrodes, and increasingly in advanced lightweight composites and emerging renewable technologies.

The initial 50 km² survey area represents only a small portion of the total licence area, leaving significant exploration upside across the broader project. Tusker plans to immediately mobilise its Malawian exploration team to commence an expanded follow-up programme aimed at rapidly advancing the project. The next phase of work will include:

 • Additional wide-spaced and infill soil   sampling to expand and refine the   geochemical footprint

 • Auger drilling to test the depth,   distribution and continuity of rutile   mineralisation

 • Review and interpretation of available    geophysical datasets (including    magnetic and radiometric surveys) to    refine priority target areas

Malawi’s Kasiya rutile-graphite project has moved further onto the global strategic stage following the signing of a memorandum of understanding (MOU) between Sovereign Metals and Traxys North America – one of only three trading houses appointed to procure critical minerals for the US Government’s newly launched US$12 billion Project Vault. 
Sovereign Metals, through its Malawi subsidiary Sovereign Services, is developing Kasiya near Lilongwe as a future leading supplier to the global titanium and graphite industries. 
Project Vault is a landmark US public-private initiative to establish a US Strategic Critical Minerals Reserve, aimed at securing supply chains for American manufacturers and reducing reliance on Chinese-controlled mineral supply. The programme is backed by US$10 billion from the US Export-Import Bank and approximately US$2 billion in private capital. 
Under the MOU, Traxys will work towards marketing graphite from Kasiya, targeting initial volumes of about 40,000 tonnes per year, increasing to up to 80,000 tonnes annually as the project expands. 
Graphite is designated a US critical mineral and is considered essential for national security and supply chain resilience. With global supply dominated by China, alternative sources are strategically vital. Kasiya’s natural flake graphite, together with its globally significant rutile resource – a key source of titanium – positions Malawi as a potential long-term supplier to aerospace, defence, advanced manufacturing and battery supply chains. 
Traxys’ role in Project Vault creates a direct commercial link between Malawi’s Kasiya Project and the US strategic minerals reserve. The initiative has attracted participation from major US manufacturers including General Motors, Boeing and Google. 
The announcement comes amid strengthening engagement between Malawi and the United States. At the 2026 Mining Indaba in Cape Town, representatives of Sovereign and Traxys met with a senior US Department of State advisor, while Malawi’s Minister of Mining participated in US State Department discussions, highlighting the growing Malawi–US partnership in critical minerals. 
Sovereign Metals Managing Director and CEO Frank Eagar said the agreement reflects growing international confidence in Malawi’s strategic role. 
“Through Kasiya, Malawi has the opportunity to become a key contributor to secure and diversified supply chains for the United States and its allies,” he said. 
The MOU, which contemplates a potential 5–10-year marketing arrangement, marks an important step in positioning Malawi as a trusted long-term partner in Western critical minerals security. 

Sovereign Services is the Malawi operation of Sovereign Metals Limited, which is focused on developing its Kasiya Rutile-Graphite Project in Malawi to become a leading global supplier to the titanium and graphite industries.  
Kasiya is the world’s largest natural rutile deposit – the purest, highest-grade

By Wahard Betha

A World Bank report has forecast that contribution from the mineral sector could reach five percent of Gross Domestic Product (GDP) by 2033, depending on whether certain high-risk projects are completed and whether government can successfully capture revenues.

The report indicates that the expected fiscal benefits of mining development will likely require between five and 10 years to materialize and are subject to considerable uncertainty.

In its latest Malawi Economic Monitor report, the World Bank draws the estimates based on the status of the Kayelekera Uranium Mine in Karonga, which has just resumed production and the Kasiya-Rutile-Graphite Project in Lilongwe currently undergoing feasibility studies.

The Malawi Government also signed agreements for the Kanyika Niobium and Songwe Hill Rare Earths projects, which are advancing to the permitting stage.

The report reads: “In a ‘business as usual scenario’, including only two low- and medium-risk projects (the Kayelekera uranium mine, and the Kasiya rutile mine), annual fiscal revenues from mining would increase to over US$200 million by the early 2030s, equal to approximately 10 percent of total fiscal revenues in the 2024/25 fiscal year, or about two percent of current GDP.”

“The ‘unconstrained’ scenario includes additional high risk projects (for heavy sands in Makanjira, rare earths in Kangankunde and Songwe Hill, niobium in Kanyika, and graphite in Malingunde), significantly increasing revenue potential.”

Progress on large-scale mining projects has continued and as noted in the previous Malawi Economic Monitor (World Bank 2025b), mining is positioned to become the largest export sector and a significant source of revenues within the next decade.

The mining sector is believed to be a game charger for growth of the country’s economy through influx of foreign exchange which remains the main challenge to the businesses.

According to the report, throughout the first half of 2025, businesses struggled amidst continued macroeconomic deterioration and operational obstacles due to high inflation and insufficient foreign exchange to meet input demand which triggered depreciation of the Malawian kwacha on the parallel market, with a pass-through effect on local prices.

The report says managing operational costs was also a challenge, with the return of load-shedding and fuel shortages acting as a drag on productivity. 

The World Bank says a long-term policy solution to the structural challenges in the foreign exchange market has yet to be put forward by the authorities, despite some easing of strict emergency measures and that access to foreign currency remains the paramount concern of most private sector actors.

It says: “The onset of the tobacco and macadamia harvest season, which traditionally boosts foreign exchange inflows through exports, has yet to have a major impact on reserves or on the spread between the official and parallel exchange rates.“

CAN MALAWI TURN GLOBAL ENERGY TRANSITION DEMAND INTO NATIONAL DEVELOPMENT?

Series; Malawi’s critical minerals moment

By now, you may have heard the phrase critical minerals—often mentioned alongside electric vehicles, renewable energy, and growing geopolitical tension. But what exactly makes a mineral “critical,” and to whom? Why are major global economic powers such as the United States and China scrambling to secure their mineral supplies? And what does all this mean for Malawi, a country whose geology is increasingly attracting international attention?

Despite the confident way the term is used, “critical minerals” are not a formal scientific mineral category. They are defined politically and economically. A mineral is considered critical when it is essential for use in modern renewable technologies but are vulnerable to supply chain disruptions. Different countries publish different lists, depending on their industrial priorities and national security concerns. However, most include minerals required for renewable energy systems, advanced electronics, and defence industries, among them being rare earth elements, graphite, lithium, cobalt, uranium, titanium (including rutile), tantalum, and platinum group metals.

Their importance becomes clearer when we consider where they are used. Lithium, graphite, cobalt, nickel, and manganese power electric vehicles, smartphones, and large-scale renewable energy storage systems. Rare earth elements are indispensable for highperformance permanent magnets used in wind turbines and electric vehicle motors. Copper and aluminum underpin power grids, transmission lines, and electrification systems. Uranium is regaining prominence as countries reconsider nuclear energy as a low-carbon baseload power source for climate change mitigation. In short, these minerals form the material foundation of the technologies shaping the 21st century and decarbonization initiatives. Without them, the global push toward decarbonization, digital connectivity, and advanced manufacturing would stall.

This growing dependence has transformed minerals into a geopolitical issue. For decades, global resource geopolitics revolved around oil. Today, competition increasingly centers on critical mineral supply chains, from extraction to processing and manufacturing of high-tech digitalization. The challenge lies in their geographies. Many critical minerals are mined in developing countries in the Global South, while refining, processing and even consumption are spatially concentrated in the Global North. Rare earth processing, for example, is heavily dominated by China, even though deposits are distributed globally. Such concentration creates supply “chokepoints,” where economic disruptions, export controls, or diplomatic tensions can have worldwide consequences.

As a result, critical minerals are now framed as national security priorities to minimize changes of weaponization by the dominating countries. To this effect, governments are funding mining projects abroad, signing long-term offtake agreements, fast-tracking “strategic” projects, and forming diplomatic alliances centered on mineral access including on shoring strategies. What was once a commercial commodity discussion has become a strategic race.

Against this backdrop, Malawi has emerged as a country of growing importance. Several projects are drawing international attention. Songwe Hill in Phalombe, developed by Mkango Resources, is one of Malawi’s most advanced rare earth projects. Rare earths are crucial for magnets used in wind turbines and electric vehicle motors, linking the project directly to global renewable energy supply chains. In Balaka district, Kangankunde, developed by Lindian Resources, is widely described as a globally significant rare earth deposit. On the Lilongwe Plain, the Kasiya project combines rutile, a high-grade titanium mineral used in aerospace and pigments, with graphite, a key battery material. Meanwhile, in Karonga, the Kayelekera uranium mine has been reopened after more than a decade of inactivity, placing Malawi back into the global uranium market at a time when nuclear energy is being reassessed worldwide.

These projects signal that Malawi is no longer on the margins of global mineral conversations. Yet the classification of these resources as “critical” is not neutral. What is critical for one country may not be critical for another. The designation often reflects industrial strategy and geopolitical interests rather than geological scarcity alone. By labeling a mineral “critical,” governments elevate it to strategic importance, justifying accelerated investment, policy support, and diplomatic engagement. However, producing countries frequently bear the environmental and social costs associated with extraction. This raises important questions. Who defines what is critical? For whose benefit? And at what cost? Local communities in producing regions may not necessarily view these minerals as “critical,” particularly if mining operations disrupt land, water, or livelihoods. While global industries depend on these resources, the burdens of extraction are often localized. If not carefully governed, the rush for energy transition minerals can replicate familiar patterns of inequality and green capitalism.

There is also the complexity of dual use. Many minerals powering renewable technologies also support defence systems. Lithium batteries power electric vehicles, but they also power warfare unmanned aerial vehicles and advanced communications systems. Rare earth elements are essential in wind turbines and in missile guidance systems. This overlap between civilian green technologies and military applications adds another layer of geopolitical significance and raises deeper questions about the nature of the energy transition.

For Malawi, the central question is not simply whether these minerals are critical globally, but whether they can become transformative nationally. Minerals are finite resources. Once extracted, they are depleted. The economic development opportunity presented by this global demand is real, but it is not automatic. Resource-rich countries have historically faced the risk of the so-called “resource curse,” where mineral wealth fails to translate into broadbased development.

To avoid this outcome, Malawi must focus on strategic governance. Mining agreements should prioritize transparent revenue systems, stable fiscal terms, local procurement, skills development, and enforceable community benefit mechanisms. The goal should be predictable public income and economic multipliers that extend beyond the lifetime of a mine. Where feasible, value addition should be encouraged, whether through mineral upgrading, beneficiation, or partnerships that support domestic processing capacity. While not all minerals can be fully processed locally in the short term, incremental steps can increase value retention. 

Institutional strength and capacity will be equally important. Clear licensing systems, credible environmental oversight, contract transparency, and empowered regulatory bodies can build both investor confidence, public trust and ultimately social license to operate. Investors seek clarity and efficiency; citizens demand accountability and safeguards. Effective mineral governance can reconcile these two seemly conflicting interests.

Mining revenues, if managed prudently, can also finance long-term development priorities. Investments in reliable electricity, transport infrastructure, technical education, and industrial diversification can ensure that mineral wealth supports economic resilience long after extraction ends. Increasingly, global buyers are under pressure to demonstrate responsible mineral sourcing to contribute to achieving the sustainable development goals This presents Malawi with an opportunity to position itself as a jurisdiction that emphasizes environmental protection, water stewardship, community participation, and transparent governance, thus, turning responsible mining into a competitive advantage rather than a constraint.

Ultimately, Malawi may benefit from defining its own critical minerals strategy. The one grounded not only in global demand but in national development objectives and priorities. Rather than responding passively to external classification systems, the country can articulate what minerals are strategically important for its own economic transformation and how extraction aligns with long-term sustainability.

Critical minerals are reshaping the global economy, and Malawi possesses geological assets that the world increasingly wants. From rare earths to rutile, graphite, and uranium, the country stands significantly at a competitive advantage. The question is no longer whether Malawi can attract mining investment, it already has. The deeper question is whether it can convert this global rush into inclusive, sustainable national development. With strategic negotiation, strong institutions, value addition, and community-centered governance, Malawi’s critical minerals moment could become more than a mining boom. It could become the foundation for long-term economic transformation.