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.

Leave a Comment

Comments