Malawi to Commence Rare Earth Mining at Kangankunde

The Ministry of Mining is finalizing a Mining Development Agreement (MDA) with Australian company Lindian Resources Limited to start mining operations at Kangankunde in Balaka district.

The Ministry of Mining is working to strengthen the legal, regulatory, and institutional framework of the mining sector to attract greater investment and boost domestic revenue.

Minister of Mining Kenneth Zikhale Ng’oma expressed optimism about the project’s potential, saying:

“We are committed to hastening the signing of the MDA so that mining activities can kick off by September. This initiative will enable the country to reap benefits from the mining sector, including job creation for local communities in Balaka district,” said Zikhale.

The rare earth deposit at Kangankunde is valued at approximately $1 billion in its initial mining phase expected to create jobs for local communities in the district.

Meanwhile, Lindian Resources Limited has made significant progress in constructing the access road, with the company’s country manager, Trevor Hiwa, expressing confidence that discussions with the government regarding the MDA would advance.

The mining sector in Malawi has the potential to significantly contribute to the country’s economy, with the government projecting the sector’s contribution to GDP to increase.

According to the Malawi Economic Monitor, the country aims to leverage its mineral wealth to drive sustainable economic development.

The mining activities are expected to make a significant economic impact with the country’s industry expected to grow, with potential exploration targets including; Rare Earth Minerals, Uranium, Graphite, Coal and Niobium.