Mining & Trade News

There is an outcry from different players in Malawi’s minerals sector following an Executive Order issued by State President Arthur Peter Mutharika banning the export of raw minerals.

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

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

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

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

But random interviews with stakeholders indicate that the order has heavily impacted on the minerals sector including  exploration firms mainly foreign investors who are failing to export samples for scientific studies outside the country.

Malawi does not have internationally accredited laboratories to conduct sample analysis hence exploration firms export samples for processing in laboratories outside the country.

The ban has also impacted Artisanal and Small-scale Miners (ASMs) mainly those dealing in gemstones. The ASMs send rough gemstones to different countries for value addition since Malawi lacks processing facilities with the lapidary in Mponela, Dowa not sufficiently equipped.

President of the Federation of Artisanal and Smallscale Miners Percy Maleta; whose organisation represents the Malawi Women in Mining Association, Gemstone Association of Malawi, Active Women in Mining Association, Gold Miners Association, Ceramics and Quarry Miners Association, and all other players in the subsector; said in an interview that supporting value addition and local mineral processing is welcome as it increases earnings for local miners.

He, however, lamented that current capacity and infrastructure are insufficient for large-scale processing and marketing of finished products.

“ASM should continue exporting rough minerals while gradually building capacity through training, technology transfer, and market development. Premature restrictions on rough exports could limit growth,” Maleta said.

However, two of the country’s publicly listed major resource firms said their projects will not be impacted by the export ban.

ASX-listed Sovereign Metals, which is pursuing the Kasiya Rutile-Graphite Project in Lilongwe hosting the world’s largest rutile deposit and the second largest graphite deposit, explained in a Press Release that with regards to its future planned Kasiya operations, Sovereign has no plans to export run-of-mine Heavy Mineral Sands as defined in the Executive Order.

CEO and MD Frank Eagar, therefore, said the prohibition does not apply to the Company or the Kasiya Rutile-Graphite Project as the ban only relates to minerals that have not been processed, refined, or value-added in Malawi.

He said: “All future mineralisation will be extracted and beneficiated in country to a final premium quality rutile (+95% TiO2) product. The high-quality Kasiya rutile product is planned to be a direct feedstock for titanium sponge production for high end titanium metal products, including aerospace and defence applications.”

“Similarly, Sovereign intends to process the run-of-mine Graphite as defined in the Executive Order in-country to produce a high-quality graphite product (96% C) suitable for major industry end markets including battery producers and refractory manufacturers. The Company continues to work with the Government of Malawi and the Malawi Mines Department for the ongoing development of the Kasiya Project.”

Another ASX-listed firm Lindian Resources, which is planning to export concentrate from the Kangankunde Rare Earth Project in Balaka considered one of the largest rare earths deposits in the world, said the Company will not be affected as it will process the ore to concentrate form, which is the highest level of beneficiation that is possible in Malawi.

But UK firm Mkango Resources, another firm planning to launch rare earth mining in Malawi at Songwe Hill in Phalombe, announced that it is planning to construct a refinery to process the ore and produce high value rare earth minerals within Malawi.

The Kayelekera Uranium Mine in Karonga, which is Malawi’s only large scale mine in production stage, has a processing plant in Karonga that produces the yellow cake which is hauled to convertors outside the country to produce nuclear fuel. ASX-listed Globe Metals & Mining also announced plans to establish a processing plant in Lilongwe for the Kanyika Project in Mzimba, which is pursuing a multi-commodity deposit that includes niobium, uranium, tantalum and zircon. Meanwhile, The President highlighted these strategic mining projects positioned to drive the nation’s growth and prosperity in his State of the Nation Address in Parliament in which he described mining as a priority sector.

“You may wish to know that Kayelekera Uranium Mine has resumed production. The Kanyika Niobium, Songwe Hill Rare Earths, and Kangankunde Rare Earths projects are advancing toward mine development. Meanwhile, feasibility work is in progress for the Kasiya Rutile and Graphite projects. These key initiatives will give a significant boost to our economy,” he said.

The President further announced that his government will establish a sovereign wealth fund to ensure that proceeds from mineral exports directly benefit the people of Malawi.

“Mr Speaker, Sir, if we get the economy right, we get everything else right,” he said.

The President also highlighted the significance of safeguarding critical minerals with more emphasis on the potential of deposits such as Kangankunde and Kasiya in his meeting with First Minister of Scotland John Swinney.

Malawi is endowed with large deposits of critical minerals including rutile, flake graphite, niobium and rare earths which are on high demand globally as they are important in the production of strong magnets important for the manufacture of electric vehicles, wind turbines and aerospace applications.

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