Mining & Trade News

The Mining and Minerals Regulatory Authority (MMRA) has trashed assertions from a civil society organization, the Centre for Democracy and Economic Development Initiative (CBEDI) that there is lack of transparency on mining agreements that the Malawi Government has signed with various mining companies.

anies. In his response to a letter from CDEDI Executive Director Silvester Namiwa, MMRA Director General Mphatso Chikoti states that under the Mines and Minerals Act (2023), the Minister may (but is not obliged to) enter into a general conditions’ agreement covering the terms for the grant of a medium or large-scale mining licence

“Under the Act, the Government has the right to acquire a free equity ownership interest in any mining project subject to the grant of a large-scale mining licence only,” he says.

He says to date three Mining Devel- opment Agreements (MDAs) that in- clude government equity clauses have so far been concluded.

The agreements are for the Kayelek- era Uranium Project in Karonga by Lotus Africa Limited, the Kanyika Niobium Project in Mzimba by Globe Metals and Mining (Africa) Limited, and the Songwe Hill Rare Earth Proj- ect in Phalombe by Lancaster Exploration Limited which are publicly accessible through the MMRA website and the Ministry of Energy and Mining.

The Authority also reports that Malawi has issued multiple categories of mineral licenses, including exploration, reconnaissance, retention, and large- scale mining licenses

Updated information on active licenses, including mineral types and locations, has been made available through the MMRA website and the national cadastral portal.

On the much anticipated Kasiya Rutile-Graphite Project by Sovereign Services, MMRA clarifies that the project remains at the exploration stage, with no mining license applied or granted.

The company currently holds several exploration and retention licenses across Dowa, Lilongwe, Kasungu, and Mchinji. Chikoti states that government equity participation in these projects will only apply once a large- scale mining license application is submitted.

On gold trade, MMRA reveals significant growth in purchases by the Export Development Fund (EDF), the only active legal b

uyer under Re- served Mineral License.

In 2024, EDF purchased 131, 283.70 grams of smelted gold valued at over K22.8 billion. Purchases were sourced from suppliers across multi- ple districts including Mchinji, Machinga, Kasungu, Mzimba, Nkhotakota among others. The unit price per gram ranged from MK 109, 000 to MK 235, 000 over the course of the year.

As of 2025, purchases rose sharply to 245,106.52 grams worth more than MK 93.5 billion. The increase represents an 87 percent rise in volume and over 309 percent in expenditure, driven by higher gold prices and expanded sourcing across districts including Mchinji, Maching, Kasungu, Nkhotakota and Mzimba.

Meanwhile, the Malawi Mining Investment Company (MAMICO), though licensed, has not yet started gold mining operations due to funding constraints.

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