Mining & Trade News

WORLD BANK’S IFC TO COLLABORATE WITH SOVEREIGN ON SUSTAINABLE DEVELOPMENT FOR KASIYA

Sovereign Metals has signed a strategic collaboration agreement with the World Bank’s International Finance Corporation (IFC) to advance the sustainable development of its Kasiya Rutile-Graphite Project in Malawi.

Under the agreement, IFC will use its expertise to help Kasiya align its environmental, social, and governance standards to global best practice, complementing Sovereign's team and supplementing input from Sovereign’s strategic partner Rio Tinto on the development of an Environmental and Social Impact Assessment (ESIA).

The three-year collaboration also gives IFC, which is the largest global development institution focused on the private sector in developing countries, the right to act as lender or mandated co-lead debt arranger, and/or investor in securities for project financing, subject to Rio Tinto’s investment agreement rights.

Sovereign’s Chairman Ben Stoikovich said: “IFC brings unmatched advantages to Kasiya's development: decades of experience in Malawi, including in the strategic infrastructure we intend to use; established government partnerships; and the institutional credibility that opens doors to international capital markets. This collaboration provides Sovereign with a clear pathway to financing while supporting Kasiya to meet the global standards that institutional investors require.”

Sovereign’s CEO Frank Eagar commented: "We are incredibly pleased to get IFC involved at this stage, as this will support our definitive feasibility study (DFS) and ESIA efforts to be aligned with IFC’s Environmental and Social Performance Standards, seeking to make the Kasiya project DFS not just feasible but also bankable. Having IFC’s support validates Kasiya's exceptional quality and strategic importance and takes us one step closer to project execution. The World Bank Group’s support for key enabling infrastructure, including the Nacala transport corridor and the Mpatamanga Hydropower Project, are expected to benefit the Kasiya project.”

About Sovereign Services

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 naturally occurring titanium feedstock – and the world’s second-largest flake graphite deposit – a battery mineral essential for the energy transition. www.sovereignmetals.com.au  

About the International Finance Corporation (IFC)

The IFC has decades of experience in the metals and mining sector, financing some of the world’s largest and globally strategic mining projects across all stages, including construction, production, and expansion. As both a long-term equity partner and debt provider to major mining companies, including Sovereign’s strategic investor, Rio Tinto, IFC has supported large-scale mine developments and expansions across multiple continents. In fiscal year 2025, IFC committed a record US$71.7 billion to private companies and financial institutions in developing countries, with a total portfolio of US$68.5 billion as of 30 June 2025, demonstrating its commitment to financing major projects worldwide. www.ifc.org  

About the World Bank in Malawi

The World Bank Group has a significant presence in Malawi through a Country Partnership Framework that supports the government's Malawi 2063 Vision. Its activities include financing major enabling infrastructure like the Mpatamanga Hydropower Project, which is Malawi’s largest energy infrastructure project to date. IFC also previously played a role in mobilizing financing for the Nacala transport corridor, which extends through Malawi. The Kasiya Project is expected to directly benefit from these strategic infrastructure assets. www.worldbank.org – Langmead and Baker

Yami Gemstone Lab & Exports Pvt Ltd (YAGLE) has urged government to adopt a phased and strategic rollout of the ban on unprocessed gemstone exports, arguing that the current blanket prohibition will not deliver the intended value addition benefits to the countrywithout major reforms in financing, training and processing capacity.

YAGLE CEO Yamikani Jimusole said that while the goal of boosting local beneficiation is commendable, the country is not yet equipped to meet the demands of full-scale domestic processing.

“We are calling for a roadmap that builds capacity step by step to ensure that the sector can transition smoothly and sustainably,” he said.

Jimusole suggested that government begin by requiring only a small percentage of gemstones to be processed locally. The proportion should increase progressively as infrastructure, expertise and equipment improve.

“We believe such an approach would avoid shutting miners out of the market while allowing the industry to grow.”

Investment in infrastructure and skilled labour forms another major pillar of the company’s proposals. Jimusole argues that Malawi currently lacks cutting and polishing centres, master cutters and training programmes required for competitive value addition.

“The government should work closely with the private sector and international partners to establish modern processing facilities and technical training centres as public-private partnerships can play a key role in accelerating this development,” he said.

He suggested that reforming the Export Development Fund (EDF) should also be a priority because the EDF’s current focus of buying rough stones without supporting value addition does not align with national goals.

“There should be a restructuring of the Fund to offer affordable loans, grants and subsidies specifically targeting equipment purchase, start-up processing businesses and training initiatives. This shift would empower miners and dealers to participate in value addition rather than remain dependent on rough gemstone sales,” he said.

To attract investment into local processing, Jimusole recommends incentives such as tax breaks or reduced export duties for value-added stones. These measures would encourage miners, traders and new investors to establish cutting and polishing operations inside Malawi rather than exporting solely in raw form.

Jimusole also calls for stronger monitoring systems to curb illegal exports and ensure compliance once the ban is phased in.

“YAGLE suggests the adoption of technology-driven tracking tools to boost transparency across the gemstone supply chain and prevent smuggling”.

Despite concerns about the current policy framework, YAGLE shares government’s long-term vision of developing a strong domestic gemstone manufacturing industry.

Jimusole says the recommendations are designed to help Malawi reach that goal without destabilizing miners’ livelihoods or crippling the industry.

“With the right policies, investments and partnerships, the country can eventually achieve its goal of value addition, but the current ban in unprocessed gemstone exports is not the solution, at least not yet.”

• Furtuna Metals unveils high grade drill results

ASX-listed Fortuna Metals has unveiled exciting exploration results from its Mkanda Rutile-Graphite Project in Mchinji, Central Malawi which is adjacent to Sovereign Metals owned, Kasiya Rutile-Graphite Project hosting the world’s largest rutile deposit and second largest flake graphite deposit.

Fortuna says in a Press Statement announcing the results that  the first results of hand auger drilling confirms insitu rutile grades of up to 2.21% rutile and continuous drill intervals of 1.66% rutile over 10m and 1.32% rutile over 10m at its Mkanda Rutile Graphite Project.

The drilling results demonstrate that high grade rutile continues from surface to end of hole, with 4 drill holes ending in mineralisation above 1.0% rutile, and 9 of the 10 drill holes ending in mineralisation above 0.5% rutile. These 10 drill holes were selected for priority assay as a first pass to highlight the wide spread nature of the rutile mineralisation at Mkanda.

The Company has now completed 544 drill holes on a notional 800 and 400m spacing across 180km² of the Mkanda project. The purpose of the drill spacing is to define the highest grade rutile mineralisation ahead of further infill and step out drilling in 2026 whose results will be received throughout first quarter of 2026.

Fortuna CEO Mr Tom Langley comments: “We are looking forward to starting aircore and push tube drilling as soon as possible in early 2026. This will allow us to determine rutile mineralisation continuity to the saprock boundary at plus ~20m. This would be in line with the Kasiya deposit which averages ~20-30m depth to saprock and significantly increases the resource potential and overall project economics.”

“We continue to progress our exploration drilling at a rapid pace having now completed 544 drill holes at Mkanda and will continue to drill up until year’s end. We look forward to updating the market with a consistent flow of these drilling results throughout first quarter of 2026.”

Project Background

The Mkanda and Kampini Projects extend over an area of 658km² and are located immediately to the south of Sovereign Metals Limited’s world class Kasiya rutile project.

Drilling programs at Mkanda and Kampini are continuing with a total of 544 drill holes with an average depth of 8m having been completed at Mkanda. The drilling is designed as a first pass reconnaissance to investigate large areas across the project for potential rutile and graphite mineralisation. The hand auger drilling to date is averaging 8m with drillholes terminated as sample quality declines once in the water table. Drilling next dry season will use an aircore drill rig from approximately April/May 2026 to infill the highest-grade areas as defined by the hand auger results. The use of aircore drilling is critical to be able to drill past the perched water table and deeper down to the saprock boundary. The saprock boundary has been defined at Kasiya to be about 20 – 30m depth. The Aircore drilling will be key to demonstrating the resource potential at these greater depths and vastly improve the project economics.

The second phase of drilling currently underway at Mkanda consists of a dual strategy of further wide spaced reconnaissance drilling on an 800m grid and infill drilling on a tighter 400m spacing based on visual results and geological logging.

A 400m by 400m drill spacing is expected to meet the required drill density for inferred resource estimation, with Sovereign Metals using a 400m by 400m drill spacing for their inferred resource at Kasiya.

Fortuna’s projects cover the majority of the 70km strike extent of the same Lilongwe Plain weathered gneiss that hosts the rutile and graphite at Kasiya.

Graphite analysis is being undertaken in parallel as part of the dual mineral commodity focus given the coarse flake graphite known to occur in the region.

The Company is setting up a low cost in-country laboratory for the initial steps of preparing the sample for heavy mineral separation (HMS).

Natural rutile is the highest quality and best source of titanium feedstock for manufacturing titanium metals and TiO2 pigment. Traditional deposits are becoming exhausted with legacy producers in decline, with an anticipated tight supply and industrial demand growth expected to drive strong future prices.

State President Arthur Peter Mutharika has appointed a new Board for the Mining and Mineral Resources Regulatory Authority (MMRA).

A Press Release from the Office of the President and Cabinet indicates that Mutharika has appointed Professor Zuze Dulanya as the Board Chairperson, Dr. Grain Malunga as Vice Chairperson and Mr. Smith Kalima, Mr. Newton Munthali and, Mr. Fesisa Rose as Members of the Board.

The Authority whose Director is Mr. Mphatso Chikoti was established under Section 5 of the Mines and Minerals Act (No. 25 of 2023) as an independent regulatory authority for mining and mineral resources in Malawi.

Following the repeal of the Mines and Minerals Act of 2019 and the enactment of the Mines and Minerals Act of 2023, the Authority regulates the mineral sector in the development and utilization of mineral resources in line with sustainable development principles and practices and for the benefit of Malawians.

The Authority is entitled to sustainable development principles and practices of: monitoring the activities of licenses while promoting and regulating local beneficiation; promoting the harmonization of activities, plans and, policies and; facilitating disputes resolution.

Professor Dulanya is a prominent Malawian geologist and Associate Professor at the University of Malawi while Dr. Malunga is former Cabinet Minister and current Coordinator for Malawi Chamber of Mines and Energy.

Mutharika, who has announced various board appointments for state-owned institutions, is, however,  yet to appoint Board Members for the Malawi Mining Investment Company (MAMICO) which is a state owned enterprise established by the Government to spearhead the development and investment in the country’s mining sector.

The Company operates under the Malawi Development Corporation Holdings Limited (MDCHL) and is part of the Government’s broader strategy to industrialize Malawi, reduce reliance on agriculture and boost Foreign Direct Investment (FDI) in mining.

MAMICO which is currently headed by Professor Dr.Leonard Kalindekafe as Chief Executive Officer was launched in February 2025 marking a significant milestone in Malawi’s efforts to fully capitalize on its rich mineral resources.

The company is seen as a game charger in Malawi Vision 2063, where mining is identified as a priority sector under the industrialization agenda.

Portland Cement launches US$100-million factory in Balaka

Portland Cement has launched a US$100-million cement factory in Balaka which is one of Malawi’s largest industrial projects consisting of a clinker plant with a production capacity of 2,000 metric tonnes per day resulting in cement output of 800,000 per year.

Minister of Finance, Economic Development and Decentralisation Honourable Joseph Mathyola Mwanamvekha, who officially commissioned the plant in Ng'onga, Balaka described the construction of such a huge factory as a milestone in Malawi’s industrialization drive which is crucial towards attaining Malawi 2063.

Mwanamvekha said: "Today marks a significant milestone in our journey towards economic transformation and industrial expansion. This ceremony is not just the launch of a factory. It is a strong demonstration of Malawi's commitment to building a more resilient, more productive and more competitive economy.”

“It is a step towards achieving the bottom-up economic transformation agenda, a strategic plan to transform our economy through manufacturing by attracting investments which create more jobs and more importantly development of Ng'onga area. Our manufacturing sector, a key driver of economic growth, job creation and industrialisation, has faced challenges, but today we celebrate our collective triumph over them."

Mwanamveka said the commissioning of the factory reflects the strong partnership between government and the private sector explaining that the Malawi Government is championing investments that create jobs, strengthen the country’s industrial base, promote import substitution, and contribute to long-term macroeconomic stability.

“The Balaka Cement Factory represents all these elements and stands as a model of transformative industrial investment.” he said.

Portland Cement Malawi is a subsidiary of China’s Huaxin Building Materials Group. Mwanamveka said that the confidence shown by Huaxin Group in choosing Malawi for such a significant investment is a testament to the progress that Malawi is making in improving the investment climate, ensuring policy consistency, and opening doors for responsible foreign direct investment.

“We value the advanced technology, global expertise, and substantial capital investment brought into the country through this partnership,” he said.

Mwanamveka said with this factory, Malawi will stop reliance on imported clinker and cement, stabilize supply, and sustainably support infrastructure development, housing, and commercial construction which directly supports the aspirations of Malawi 2063, particularly the pillars of Industrialization, Urbanization, and Economic Competitiveness.

While touting the plant as having the capacity to export, he said Government will not allow the company to export if the local supplies are not adequate because it wants to promote health competition on the local market to ensure that prices of cement are not prohibitive.

Portland Cement Board Chairperson Symon Msefula said the investment will help in addressing cement shortages in the country in so doing stabilizing prices that are impacted by importation of cement. “The project reaffirms our long-term commitment in contributing to Malawi’s development,” he said.

Huaxin Building Materials Group Vice President Wang Jiajun explained that the factory will benefit generations as the limestone deposit has over 100 years mining life. He explained that with the opening of the clinker plant, the company will release into the local economy US$50-million annually in foreign exchange which was being spent on importation of clinker and cement.

Chinese Ambassador to Malawi Lu Xu said the opening of the factory underlines the cordial relationship between Malawi and the People’s Republic of China.

“We are committed to work with the Malawi Government in developing the country,” said Lu.  

Member of Parliament for Balaka Rivirivi Constituency Chifundo Makande advised the communities around the factory to desist from vandalism and theft of the property.

Senior Chief Nsamala said the members of the community need to be proud of such a mega investment in their area as it is contributing to transformation of lives through employment and business opportunities.

Huaxin Cement which was founded in 1907 is among top 10 cement producers in the world with subsidiaries in a number of countries including Zimbabwe, Mozambique and South Africa.

Construction of the Balaka factory started in the fourth quarter of 2024 and has been completed within 11 months only. The investment will generate K35-million for government in form of taxes and an extra K1-billion in mining royalties annually and has created at least  500 direct jobs and over 2,000 indirectly.

The company has also undertaken a number of corporate social responsibility initiatives including gifts to Balaka District Hospital, donations of cement to Professor Borgsten of Mercy James Pediatric Care Centre at Queen Elizabeth Central Hospital in Blantyre, provision of cement to Cyclone Freddy victims, assistance to Beit Cure Hospital in Blantyre in 2025, and donation of food items to vulnerable households in the Ng’onga factory area.

The company is generating own electricity to power the factory and uses electric vehicles in running the Balaka factory as an environmental conservation measure.

The Evangelical Association of Malawi (EAM) has called for collaboration among key stakeholders in the extractives sector to ensure that the country’s minerals benefit both government and local communities.

EAM made the call during a Government and Extractives Stakeholder Engagement Meeting on Mining Compliance and Governance, which took place in Lilongwe.

Vice Chairperson for EAM Davidson Chifungo said in an interview that they organized the meeting to fulfil one of their roles of making sure that there is proper collaboration in the extractive industry.

Chifunngo said: “What we have seen is that we have a lot of minerals but Malawians are not benefiting from them simply because there is no collaboration between entities in the sector.”

“There are some people who are smuggling the minerals, some Malawians are getting small scale mining licenses and later sell them to foreigners.” “In the end Malawi is not benefiting, the communities are not benefiting, that is why we called on the meeting to discuss how we can utilize the sector to ensure that there is justice for all.”

Chifungo backed government’s ban on raw mineral exports but urged the government to ensure implementation of the decision.

“The challenge that we have as a country is that we are just good at making pronouncements but very poor in terms of implementation,” he said.

Representing Malawi Extractives Industry Transparency Initiative (MWEITI) Secretariat, Leonard Mushane also blamed lack of coordination in the sector as one of the challenges impacting the industry.

Mushane said: “Coordination is the challenge between the Geological Survey Department, Mines Department, Mining and Mineral Resources Regulatory Authority (MMRA), Malawi Revenue Authority (MRA) and the Ministry itself.

“Technically we are working at making sure that mining revenue is being generated and collected as required.” The meeting was organized following the Alternative Mining Indaba that Civil Society Organisations operating in the extractives sector held from November 4 to 5 under the theme ‘Power to the people; Owning Malawi’s Energy Future.’ In his presentation, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera asked the government to publish all mining licenses, agreements and beneficial ownership details as one way of ending secrecy in the extractive deals.

Chabwera also urged the government to enforce environmental laws saying it requires mandatory rehabilitation and community led monitoring.

He said: “The government should fast-track ASM formalization, provide technical support and finance for safe operations.”

“They should also amend policy to extend Community Development Agreement (CDA) to medium scale operations and strengthen local and traditional leader roles in licensing and monitoring.”

“Government must also promote tax justice and end provision of harmful incentives to investors that deprive communities of revenue, localize MWEITI processes and make data accessible in local languages.”

He further appealed to the government to invest in beneficiation and local processing to create jobs and retain value in the country.

Globe Metals and Mining, which is pursuing the Kanyika Niobium Project in Mzimba, says it has registered solid operational, regulatory, and financial progress, positioning the Company for the next phase of development of ­­­­the Project.

The Company says in its quarterly activities report for the quarter ended September 2025 that the period marked a significant advancement in de-risking and progressing the Kanyika Niobium Project, strengthening Globe’s capital base, regulatory position, and strategic importance in the global critical minerals supply chain.

Globe’s Interim Chief Executive Officer, Charles Altshuler, commented: “During this quarter, we demonstrated continuous progress across Globe’s operational, regulatory, and funding fronts. The Mining Development Agreement (MDA) extension provides the certainty needed to complete key infrastructure and resettlement milestones, while the expansion of our mining licence underscores Kanyika’s increasing relevance in the global critical minerals landscape.”

“The successful completion of Tranche 1 and the loan conversions after the quarter have materially strengthened our balance sheet and demonstrated continued support from our strategic investors. We are now poised to enter the next development phase with a cleaner capital structure, a broader resource base, and stronger relationships with government, community, and funding partners.”

The recognition of niobium as a top-ten strategic mineral by U.S. Geological Survey, with an associated potential economic impact of US$10 billion under supply chain disruptions, highlights both the importance and the opportunity inherent in the Kanyika project. Globe remains committed to advancing the Project responsibly, efficiently, aligning closely with Malawi’s national development priorities.”

Project and Permitting Update

During the quarter, the Company received confirmation from MMRA that the MDA for the Kanyika Niobium Project remains valid and in full effect. The MMRA granted a 12-month extension for the commencement of substantial mining operations by September 27, 2026.

This extension follows collaborative efforts with the Government of Malawi to synchronize key development activities with national infrastructure delivery schedules. Over the past year, Globe has advanced various preparatory milestones, including early contractor engagement, infrastructure planning, and formalisation of the Community Development Agreement (CDA), which establishes the Kanyika Development Trust for local benefit sharing.

The extension period will enable the Company to finalise critical activities with the government agencies, including completion of the 32-km access road from Chatoloma Junction to site, advancing the 17-MW grid power connection, and implementing the resettlement and compensation program for affected households. Globe is working closely with the District Commissioner and community leaders to synchronize these processes with pre-construction and early works.

In the next 12 months, Globe’s focus will shift to resettlement preparations, site-based assessments, and advancing early works and permitting activities vital for full construction readiness. The Company continues to work transparently with regulators, communities, and investors to ensure that the Project progresses toward substantial mining operations in a responsible and Environmental, Social and Governance (ESG) aligned manner.

Licence Expansion and Critical Minerals Diversification

During the quarter, Globe received formal approval from the MMRA for an amendment to Large-Scale Mining Licence for the Kanyika Niobium Project. The amendment extends the licence scope beyond niobium, tantalum, and uranium to include zircon, hafnium, neodymium, and praseodymium — four high value critical minerals with strong strategic relevance to global clean energy and advanced materials markets.

This regulatory approval enhances the long-term development potential of the Project and ensures all future production of these minerals will occur under a fully compliant, government-endorsed framework. It also aligns the Project with the broader priorities of Malawi’s Vision 2063, which seeks to establish the country as a regional hub for critical mineral production and processing.

Each of the newly included minerals offers unique commercial and strategic advantages:

• Zircon: Used in ceramics and advanced refractories, it can be recovered as a by-product of niobium and tantalum processing, bringing additional revenue with minimal capital investment.
• Hafnium: A rare and ultra-high-value metal used in aerospace superalloys and nuclear control rods, representing a potential long-term opportunity for Globe as global demand outpaces supply.
• Neodymium and praseodymium : Essential for high-performance permanent magnets used in EVs and wind turbines, reinforcing the Project’s exposure to the fast-growing green-energy and electrification sectors.

Community, ESG and Leadership

During the quarter, Globe strengthened its in-country leadership with the appointment of Dr. Joseph Mkandawire to the Board of its Malawian subsidiary, Globe Metals & Mining Africa Limited. Dr. Mkandawire is the former Principal Secretary of Malawi’s Ministry of Mining, his extensive experience in government and policy will support the Company’s community, regulatory, and national development alignment.

­­­ Strategic Update and BFS Progress

During the quarter, the Company continued the engineering optimisation, Early Contractor Involvement (ECI) engagement, and funding strategy workstreams outlined in the June quarter report. These activities advanced as planned, with further refinement of project scope, cost estimates, and partner engagement.

Having already detailed the ECI model and associated design improvements in the previous update, the Company’s focus this quarter has been on updating contractor input, integrating updated market data into the BFS, and progressing partner due diligence ahead of the Final Investment Decision (FID). These ongoing efforts maintain Globe’s strong strategic position and ensure that the Kanyika Niobium Project remains aligned with market demand, ESG expectations, and financing readiness.

The Company will release the BFS at a strategically aligned time following these partnership and procurement negotiations. While no binding EPC or construction contracts are yet in place, this early engagement is expected to significantly de-risk the project execution phase.­

The Future Miners Network (FMN), a student-led initiative formed by Mining Engineering students at the Malawi University of Business and Applied Sciences (MUBAS), is broadening mining literacy among secondary school learners in districts where exposure to the industry has remained minimal for years.

FMN Team Leader Ezala Banda said in an interview that the network has already reached nine rural schools and the response from both learners and teachers signals an urgent need for structured mining education in Malawi.

The initiative was established in August 2025 after students observed that many young people joining mining-related programmes had no back ground in what the sector involves. He explained that the group was motivated by recurring encounters with peers who enrolled in geology, mining engineering, mineral processing and environmental courses without any prior exposure  in mining.

Banda said this lack of early knowledge contributes to low enrolment in mining programmes and widens Malawi’s shortage of skilled professionals. He observed that the gap in knowledge goes beyond academic interest and that this is particularly concerning in a country seeking to build a competent workforce for emerging mineral projects. FMN’s sessions centre on five main topics; Malawi’s mineral potential, ongoing and upcoming mining projects, career guidance, daily uses of minerals and the dangers of illegal mining.

Banda said: “We emphasize on career paths that include mining engineering, geology, mineral processing and environmental management, with deliberate encouragement for girls to consider mining-related professions.”

“We also highlight major minerals in the country such as rutile, graphite, limestone, gemstones and rare earth elements and the risks of illegal mining such as pit collapsing, landslides, child labour and potential exposure to unsafe tools and hazardous materials.” Banda said the impact of their work is already visible among learners and communities.

Students have begun expressing interest in pursuing mining-related careers and teachers have reported increased curiosity in science classes. “We have seen fear turn into curiosity and curiosity turn into ambition. Some learners have also taken information home, prompting families to seek accurate explanations about mining activities in their areas,” he said.  

Despite the impact, Banda said FMN faces financial and logistical challenges, as the group operates entirely on contributions from students hence transport. printing and administrative costs are difficult to sustain. He said, “Many of the secondary schools we target are located in remote areas, increasing transport expenses and most schools lack basic learning materials, making practical demonstrations challenging”.

“Demand is growing faster than our capacity as more schools continue to request outreach sessions even though the team is unable to accommodate them due to resource constraints”. FMN is, therefore, seeking financial, technical and institutional support. The group needs assistance with transport, educational materials such as brochures and posters, mineral samples, demonstration models and training in community engagement and environmental communication. He said formal partnerships with government ministries, civil society organisations and private mining companies would help the group access more schools and strengthen its programmes.

“Our goal is to reach all 28 districts and as a group envisions establishing Malawi’s first national student-led mining awareness programme”.

FMN is positioning itself as a bridge between the mining sector and the communities where Malawi’s next generation of professionals is growing. The network mission is clear; equip young people with knowledge, correct misinformation and build a foundation of informed citizens.

The Malawi Extractive Industries Transparency Initiative (MWEITI) says the absence of a dedicated legal framework continues to limit its effectiveness in promoting transparency and accountability in the country’s extractive sector.

MWEITI Secretariat Desk Officer Leonard Mushane said the initiative currently operates under the Mines and Minerals Act and existing public finance laws, which encourage disclosure and transparency but are not specific to the Extractive Industries Transparency Initiative (EITI) standards.

“We do not yet have an independent legal authority, but we have a draft bill for MWEITI. At the moment, we use the provisions in the Mines and Minerals Act and the public finance management framework to promote transparency. These legal provisions complement and support EITI’s objectives, even though they are not specific to it”, Mushane said.

He explained that once the MWEITI Bill is approved by Parliament, it will grant the institution full legal authority to enforce international transparency standards and strengthen oversight in the extractive sector.

“It has taken long but we believe the process will soon be expedited so that MWEITI can fully operate as a legally established entity,” he said.

MWEITI has three main functions that define its work which are to promote transparency in the extractive sector by implementing international EITI standards, grow the revenue base of the extractive sector to contribute meaningfully to Malawi’s economic development and to foster collaboration and trust among key stakeholders, government, companies, and civil society.

MWEITI has also been instrumental in ensuring that mining revenues translate into tangible development, especially at the community level. Mushane cited that through MWEITI’s efforts, Malawi has adopted provisions for Community Development Agreements (CDAs) under the Mines and Minerals Act of 2023.

He said through the provision every large-scale mining company is now required to allocate 0.045 percent of its gross revenue to communities within a 20-kilometre radius of the mine. This ensures that local people directly benefit from mining activities rather than waiting for government redistribution.

Mushane said MWEITI is also promoting local content regulations to ensure communities benefit through jobs, supply contracts, and business opportunities around mining operations. In addition, the initiative is working on establishing a Revenue Management Fund, a mechanism that will allow transparent tracking and allocation of mining revenues.

“Currently, all mining revenues go into government account number one, making it difficult to track their use. We are promoting a system that ensures clear, traceable, and equitable distribution of mining revenues. A consultant from Canada is helping us conduct a feasibility study and once it is completed, stakeholders will be consulted to finalize it,” Mushani said.

Despite progress, Mushani acknowledged several challenges hindering MWEITI’s full implementation of EITI standards, among them is the lack of a legal framework, which makes enforcement difficult and leads to cases of noncompliance from companies and some government agencies.

“Sometimes companies delay or refuse to provide information because there are no penalties for noncompliance. In other countries, where there are laws, things move faster because everyone understands the consequences of withholding information,” he said. He also cited limited funding and the absence of a fully-fledged MWEITI institution as obstacles to effective dissemination of reports and stakeholder engagement.

“We are doing what we can as a small team, but without adequate resources and legal powers, we cannot fully achieve our mandate,” Mushane said.

Looking ahead, MWEITI has outlined key priorities to strengthen transparency and accountability in Malawi’s extractive sector. These include pushing for the enactment of the MWEITI Bill, establishing the Revenue Management Fund, and developing a Local Content Policy and Regulation in collaboration with the Ministry of Mining.

“With new mineral discoveries and increased investment, we must ensure Malawi benefits fully from its natural resources. The local content policy will guarantee greater benefits for Malawians through employment and business participation,” Mushane emphasized.

He said that to ensure transparency, MWEITI publishes its reports on its official website, www.mweiti.gov.mw and also works with civil society organizations and the media to disseminate information. “We summarize and translate our reports into local languages such as Chichewa and Tumbuka for easy understanding at the community level. Although funding limitations affect consistency, our goal is to make information accessible to every stakeholder,” Mushane said.

MWEITI is also promoting beneficial ownership disclosure, which allows the public to know who truly owns companies operating in the extractive sector. However, Mushani noted that because the institution lacks legal power, only companies that voluntarily submit ownership information are currently listed.

As Malawi moves towards strengthening its mining governance structures, MWEITI’s push for a legal mandate and improved transparency mechanisms could mark a turning point in ensuring that the nation’s mineral wealth benefits all its citizens.