Mining & Trade News

Mining engineer Denis Mkandawire has called for the adoption of simple and affordable technologies to improve the safety, efficiency and profitability of Artisanal and Small-Scale Mining (ASM) in the country.

Mkandawire said in an interview with Mining & Trade Review that his visits to a number of small-scale mining sites in the country have shown that miners continue to rely on basic tools and methods, including picks for breaking rocks, shovels and hand held hoes for loading and moving materials, and buckets for washing and separating minerals.

He said some miners also use door mats to trap gold, while others use diesel-powered water pumps to wash and process mining materials.

Mkandawire said mercury is also being used by some gold miners to extract the precious metal, despite the risks it poses to miners and the environment.

He said: “These miners are working hard—but they are working harder, not smarter.”

He said there are affordable and simple technologies that can potentially increase mineral recovery rates, reduce miners’ exposure to toxic chemicals and enable them to process larger quantities of material in less time.

The mining engineer said modernising the sector does not necessarily require expensive machinery, but rather simple, practical solutions that can transform lives.

He called on people working in mining, development and policy to join discussions on how technology can help transform artisanal and small-scale mining from a pick to a profit.

Commenting on the issue, President of the Federation of Artisanal and Small-Scale Mining in Malawi (FASMIM) Percy Maleta agreed with Mkandawire saying there is a need to ensure that ASMs move from a pick to profitability through smart mining, where simple and inexpensive technologies, including alternatives to mercury, are introduced.

“He is right. There is a need to make sure ASMs move from a pick to profitability through smart mining, where simple, inexpensive technology is introduced, including alternatives to mercury use,” said Maleta.

He also encouraged those who already have the technology to go ahead and introduce it instead of waiting for policy changes or conferences.

“I would go further and encourage those who have the technology to go ahead and not wait for any policy or conferences. Sometimes we have to do things outside the box, and surely the policies will align. Otherwise, waiting on government takes forever,” said Maleta.

He, however, stressed that such initiatives must be implemented within the law.

“Let me be clear to say we need to do everything in accordance with the laws of the country, and that only political will will change everything in a flash,” he said.

But Maleta said technology should not be viewed as a replacement for traditional tools but as a way of making ASM safer, more environmentally friendly and more profitable.

“Technology is not replacing the use of a pick and shovel but improving the way ASM works and making their job smarter, environmentally friendly and profitable,” he said.

Pressure is mounting on the Malawi Government to clearly explain the status of negotiations for a Mining Development Agreement (MDA) for the Kangankunde rare earths project in Balaka, with concerns growing over whether the country has adequately secured its interests before commercial-scale mineral exports begin next month as planned.

The concerns have come in the wake of media reports that Government and Lindian Resources started negotiations for a mining deal for Kangankunde only to go silent on the progress later.

In January 2025, the Ministry of Mining and Lindian confirmed to the local media that negotiations had started to sign the Kangankunde MDA, with experts urging authorities to bargain for the best possible deal for Malawi.

“The MDA discussions commenced with the Malawi Government,” the then Lindian CEO Alwyn Vorster was quoted by The Nation as saying with the then Principal Secretary for the Ministry of Mining Joseph Mkandawire confirming the discussions.

But unlike major projects such as Mkango’s Songwe Hill rare earths, Lotus Resources’ Kayelekera uranium and Globe Metals’ Kanyika niobium projects, which signed MDAs,, Lindian is proceeding with Kangankunde without signing the deal with the developers saying the over US$1-billion project is being pursued with a medium-scale mining licence hence does not require a MDA.

Commenting on the issue, Natural Resources Justice Network (NRJN) Programmes Officer Joy Chabwera said the Government should explain the legal and fiscal arrangements currently governing the project and, if a MDA has not been concluded, clarify what measures are in place to protect Malawi’s interests.

Chabwera said the earlier negotiations raise important questions about transparency and the protection of Malawi’s national interests, particularly as the project moves towards commercial production and exports.

“Ultimately, the question is simple: before Malawi's mineral wealth starts leaving the country on a commercial scale, do Malawians have sufficient transparency about the terms under which that wealth is being developed and the benefits Malawi will receive?” said Chabwera.

He questioned the whereabouts of the outcome of the earlier negotiations, particularly as the project moves towards commercial production and exports.

“The question now is what became of those negotiations, particularly as the project moves towards commercial production and exports,” he said.

However, Chabwera cautioned against concluding that the absence of an MDA automatically means the company’s exports will be unlawful.

According to Chabwera, whether Lindian can legally commence or undertake exports depends on the applicable mining licence, statutory approvals, licence conditions and other requirements under Malawi’s legal and regulatory framework.

“If government has been negotiating a MDA or other mining agreement intended to define the benefits accruing to Malawi, there should be clarity on the status and outcome of those negotiations,” said Chabwera.

He said Malawians should be able to understand, subject to legitimate confidentiality and legal limitations, what the country has secured in terms of revenues, taxation, local procurement and employment, community benefits, environmental obligations, value addition and other national interests.

“This is not about opposing investment. Malawi needs responsible investment in the mining sector. But responsible investment must be accompanied by transparency, accountability, legal certainty and a fair return for the people of Malawi,” said Chabwera.

Centre for Human Rights Education, Advice and Assistance (CHERAA) Executive Director  Victor Mhango said the development of Kangankunde must be undertaken in a manner that protects Malawi’s interests and ensures that the country and its people derive fair and tangible benefits from the resource.

Mhango said a MDA is an important instrument for setting out the respective obligations of an investor and Government, including issues relating to economic benefits, local participation, employment, environmental protection and other national interests.

“It is therefore important that the Government provides clarity on the status of the MDA negotiations and the legal basis under which commercial exports can proceed in the absence of a concluded agreement,” said Mhango.

He stressed that CHERAA supports investment in Malawi’s mining sector, but said such investment must be transparent, accountable and conducted within the applicable legal and regulatory framework.

Mhango stressed that Malawians deserve to know what benefits the country will receive from the exploitation and export of its mineral resources.

Seasoned geologist Ignatius Kamwanje said the issues surrounding Lindian Resources and the Kangankunde project raise broader questions about the strength of Malawi’s resource governance system.

Kamwanje said there appears to be a challenge in balancing investor rights under the current laws against public expectations for transparency and greater national benefit from mineral resources.

He said part of the controversy stems from the legal framework governing different categories of mining licences and the circumstances under which a MDA is required.

According to Kamwanje, under Malawi’s current mining laws, the legal requirement for a MDA varies depending on the type of mining licence held by an operator.

He said Lindian operates through its local subsidiary, Rift Valley Resource Developments, using a medium-scale mining licence, a licence category that does not legally require an operator to enter into a MDA in the same way as large-scale mining operations.

Kamwanje said medium-scale operators are also not legally required under the same framework to provide free equity to Government or enter into a Community Development Agreement (CDA).

Kamwenje said one possibility is that Lindian should eventually be upgraded to a large-scale mining operation, although suggestions that this should happen during Phase Two of the company’s operations have not yet been conclusively established.

He, however, wondered why although Malawi has restrictions on the export of raw minerals, Lindian has reportedly received an exemption, a development that has generated further debate over whether the country is obtaining sufficient value from the resource.

“Initial plans were that the mineral will be processed locally into rare earth oxide, whereas the current plan involves the export of raw monazite concentrate,” Kamwanje observed.

State President Arthur Peter Mutharika issued a ban against exportation of raw minerals but Lindian is mobilising to start commercial exportation of  raw monazite concentrate despite the ban.

Over the past seven years, Malawi has experienced tremendous growth in informal artisanal and small-scale mining (ASM) activities across many districts. This growth has largely been driven by the emergence of gold mining, which has attracted many people who previously depended primarily on agriculture. However, significant gaps remain within the regulatory framework, and these need to be addressed urgently to establish a sustainable, responsible and well-regulated ASM sector.

As the Mines and Minerals Act is being amended, greater consideration should focus on the realities and evolving needs of the ASM sector, which have for too long been overlooked. Strengthening the framework would help the country to reap greater economic benefits from the sector. The following recommendations are proposed for consideration in the amendment of the Act.

1. Introduce additional ASM licences 

The current ASM licensing provides only three types of licences, which deprives the majority of an opportunity to operate within the regulatory framework. It is necessary to introduce new licences that reflects the reality on the ground and the scale of activities within the sector. The licensing system should be decentralized, affordable and accessible to everyone by delegating the ASM licensing functions to district assemblies to ease formalization.

A. Small-Scale Mining Licence

A small scale mining licence should be continued and clearly define capital investment, production capacity, area size and mechanisation should be permitted. The licence should:

• Allow mechanisation and tunnelling to a specified maximum depth.
• Allow chemical processing subject to applicable environmental requirements and clearance.
• Provide an area of approximately six hectares to allow sufficient space for mining, tailings and waste management, tanks and future expansion.
• Be granted to Malawian citizens only, cooperatives and companies that are 100% Malawian-owned, subject to the applicable legal requirements.
• Have a licence duration of four years to provide greater security of tenure and encourage responsible investment.

B. Artisanal Mining Licence

An Artisanal Mining Licence should be designed for Malawian artisanal miners operating at a very smaller level and with limited capital and equipment. The licence should:

• Cover an area of approximately two hectares
• Be subject to a clearly defined capital threshold.
• Permit only limited mechanisation appropriate to artisanal operations.
• Establish a maximum depth of mining operations for safety and environmental management.
• Have a licence duration of two years

These licences would allow the regulatory framework to recognize the different levels of investment, production, mechanisation and operational capacity within ASM rather than applying a one-size-fits-all approach.

C. Trading Licences

Categories of mineral trading licences should also be established to strengthen the legal mineral supply chain.

i. Reserved Mineral Licence (RML)

The RML should only be issued to mineral exporters of which Malawians and non-citizens should be eligible to obtain it. RML holders should be permitted to purchase minerals from licensed miners and licensed brokers nationwide.

ii. Broker Licence

It should be issued to Malawian citizens only to purchase minerals, including gold and gemstones, directly from licensed miners and sell them to licensed brokers, RML holders, the Export Development Fund and other authorized traders within the country. Brokers should act as intermediaries between licensed miners and larger national mineral dealers but should not export minerals.

iii. Processing Licence

This licence should cover businesses and individuals involved in mineral processing without direct extraction, including gemstone cutting and polishing, jewellery manufacturing, mineral smelting, and processing of raw ore and mineral-bearing soils.

2. Create provisions for partnerships between ASM operators and foreign technology and capital providers

The amended Act should include clear legal provisions allowing holders of Small-Scale Mining Licences to enter into transparent partnerships with foreign technology and capital investors to enhance productivity. Such partnerships should protect locals from exploitation by foreign investors while providing access to the capital, technology.

3. Establish a clear pathway for mining licence upgrading and transfer

When an ASM operator wants to upgrade the licence scale, the miner should be able to upgrade the existing licence with ease without necessarily cancelling it and restarting the entire application process. Similarly, artisanal and small scale mining licence holders should be allowed to lawfully sell and transfer licence ownership, subject to regulatory approval and compliance with eligibility requirements.

5. Clearly define mineral value addition

The Act should provide a clear definition of the extent of value addition required for a mineral to qualify for export under a value-added classification. The term value addition is too broad and may create con- fusion for exporters hence pushing them to smuggling.

6. Review royalty rates to incentivise formal mineral exports

The royalty structure should be reviewed to make formalization attractive to ASM operators. The royalty for value-added minerals should be reduced to 3% with the aim of encouraging local mineral processing, while the royalty rate for rough minerals should be reduced to between 5% and 7%. Such adjustments could incentivize many ASM operators to sell and export legally rather than resorting to informal markets and smuggling.

Conclusion

The amendment of the Mines and Minerals Act offers a crucial opportunity for the country to develop a regulatory framework that reflects the true realities of the prevailing ASM sector. The amended Act should therefore put the ASM at the centre of the formalization to achieve responsible mining with regards to environmental sustainability and welfare of the mining communities.

Stakeholders in the extractives industry have asked the Malawi government to extend the threshold of mining companies mandated to sign Community Development Agreements (CDA) to medium scale miners to ensure substantial benefits for communities in mining areas.

In the Mines and Minerals Act 2023, only those companies classified as large-scale miners are mandated to sign CDAs through which privileged local communities demand projects

But in an interview with Mining and Trade Review, the stakeholders explained that this is important because the country has no large-scale mines which are entitled to CDAs, a part from Kayelekera Uranium mine in Karonga

They expressed concern that some companies are operating at a large scale but they are deliberately not upgrading to large scale to shun CDAs.

For instance, ASX-listed Lindian Resources has come on the spotlight for operating the Kangankunde Rare Earth Resource in Balaka using a medium scale mining licence despite Kangankunde being a globally significant multigenerational deposit.

Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera supported the idea saying medium scale mines are huge enough to support the communities.

“Many mining companies in Malawi are in the medium scale category, and having a CDA will guarantee their social capital and contribution to benefit sharing.” Chabwera said.

Mining Sector Consultant Ignatius Kamwanje called on the government to uphold a strong regulatory framework to monitor mines in the country.

Kamwanje said: “The Mines and Minerals Act as provided for is a precursor to conditions on whether a mine is deemed medium or large

“Government must make sure that there is no loophole in the clauses stipulated in the Act for mining companies to take advantage.”

“This calls for a strong regulatory framework. The government must set up auditing and monitoring of mine operations as mechanisms to check such noncompliance.”

“The CDA has so many impacts to the communities as it brings sense of belonging and ownership of mines by having legal stranding and negotiated power. It guarantees funds that are set aside as revenue for infrastructure development. It also reduces local conflicts through dialogue that is structured and ensures transparent grievance mechanisms.”

Director for the Department of Mines Burnet Msika told Mining & Trade Review that the application of CDA to medium scale is one of the major issues in the impending review of the Act.

“The issues being raised here are pertinent and beckon consideration in the on-going Act review process.”

“As a matter of fact, these are some of the issues that are on the billing for further stakeholder consultation.”

A CDA is a formal, legally binding contract between a project developer often in mining, oil, gas or large infrastructure and a local host community.

As the Malawi Government prepares to roll out the World Bank financed US$70 Million project aimed at transforming the country’s mining sector to become a major catalyst for economic growth, the Chamber of Mines and Energy in Malawi says besides policy reforms, there is need for government to consider critical areas that will create a conducive business environment in the country.

President of the Chamber Maxwell Kazako says under the programmee, gov- ernment needs to prioritize issues such as greater regulatory certainty, faster approval processes, clearer land acquisition proce- dures and stronger support for local skills and suppliers to mining companies.

The World Bank project is expected to center its attention on strengthening institu- tional capacity, geological surveys, envi- ronmental governance and revenue management.

The proposed investment presents an op- portunity not only to strengthen institutions but also addresses long standing barriers that have slowed the sector’s growth. Greater emphasis on infrastructure devel- opment, mineral processing, digital mining systems, modern laboratory services and skills development that could significantly improve the country’s competitiveness while creating more opportunities for local businesses and communities.

However, Kazako explains that while these priorities are important, they do not fully address the practical challenges that continue to hinder investment and sustain- able growth of the mining industry in Malawi.

He says Malawi’s mining ambitions face practical challenges that go beyond geolog- ical surveys and institutional reforms hinting that poor road networks, limited rail connectivity and unreliable electricity con- tinue to make it difficult to move mineral discoveries into production.

Kazako says: “The proposed interven- tions address part of the challenge, but they do not fully reflect the realities experienced by companies operating in Malawi today. The issues of utmost importance are the practical barriers that delay the transition from discovery to production, including prolonged approval processes, uncertainty regarding land access, inconsistent applica- tion of regulations and difficulties coordi- nating with multiple government agencies.

“Reforms must translate into measurable improvements in service delivery, faster li- cense processing, coordinated inspections, digital cadaster systems and transparent communication with investors.”

He says investment in infrastructure could have an immediate impact on mining growth with priorities including upgrading roads linking mineral producing areas to railheads and ports, expanding electricity transmission to prospective mining regions, improving water infrastructure and strengthening digital systems for mining ad- ministration and land management.

Kazako says the sector also requires a legally mandated one step Mining Invest- ment Authority that would coordinate ap- provals, operate digitally and provide clear timelines for investment decisions.

Coordinator for the Chamber of Mines and Energy Grain Malunga says unlocking Malawi’s vast mineral potential requires a much broader approach that goes beyond policy reforms

Malunga says strategic investments in transport infrastructure, reliable electricity, modern mineral laboratory services, value addition technologies and efficient digital mining cadastre system would significantly improve the country’s competitiveness.

“Malawi has significant mineral potential, but mineral wealth alone does not guar- antee development. We must invest not only in discovering minerals but also build- ing trust through transparent governance, predictable regulations and efficient institu- tions,” he says.

Malunga explains that currently, the country needs practical investments in infrastructure, mineral processing, technician training and modern laboratory services.

“When investors have certainity and communities see real benefits, Malawi will become far more attractive destination for responsible mining investment.”

Commenting on the issue, National Co- ordinator of the Natural Resources Justice Network (NRJN) Kennedy Rashid agrees with the Chamber saying transport infra- structure, reliable electricity and access to finance remain the biggest barriers to min- ing investments.

Rashid says: “Without quality roads, rail links, energy supply and efficient logistics, investors will continue to face high operational costs despite improvements in geological information and regulatory systems.

“The private sector requires predictability, efficiency and partnership. One major gap is regulatory certainty. Investors need confidence that mining policies, taxation, royalties and licensing procedures will remain stable over the life of their investments. The private sector also needs faster licensing processes. Delays in obtaining exploration licenses, environmental approvals, and land access significantly increase project costs.”

Rashid also calls for support for local entrepreneurs through affordable financing and strengthening local supply chains so that Malawian businesses can participate meaningfully in the mining value chain rather than leaving the sector largely in the hands of foreign investors.

United Democratic Front (UDF) President Atupele Muluzi Government has called on Malawi to undertake bold reforms in the mining sector to attract more investment, saying increased mineral exports could help address the country's foreign exchange shortages, create jobs and stimulate economic growth.

Muluzi made the remarks in an interview with Mining and Trade Review reflecting his participa- tion in the Critical Minerals Dia- logue held at the Royal Zambezi in Zambia last year, where gov- ernment officials, investors and global mining companies dis- cussed strategies for expanding investment in the mining sector amid growing global demand for critical minerals.

He said the meeting provided valuable lessons on how Zambia has positioned itself to benefit from the global critical minerals boom through policies aimed at attracting private investment.

Muluzi said he was particularly impressed by Zambian President Hakainde Hichilema's business- first approach, which recognises private capital as a key driver of job creation, infrastructure devel- opment and economic growth.

He also said he had the oppor- tunity to engage with interna- tional mining companies, including First Quantum Miner- als, where he learned about the reforms needed to attract serious investment into the mining indus- try.

He said Malawi should reposi- tion its mining sector to attract exploration activities, arguing that exploration brings invest- ment into the economy and cre- ates opportunities to ease foreign exchange challenges while gener- ating employment and boosting economic activity.

Muluzi said investors are look- ing for confidence that their in- vestments will be protected through predictable and consis- tent policies, reduced bureau- cracy and an environment free from corruption and bribery.

He observed that the era of re- lying heavily on foreign aid and development assistance is gradu- ally coming to an end, with coun- tries increasingly competing for investment and trade opportuni- ties.

He said Malawi has significant mineral potential but requires pol- icy consistency, investor confi- dence and economic reforms to unlock the sector's full potential and drive sustainable develop- ment.

Commenting on Muluzi's sentiments, mining engineer Dennis Mkandawire said the UDF leader h raised important issues on pol- icy consistency and investor con- fidence but argued that there are also other critical areas that re- quire urgent attention.

"Atupele Muluzi raises impor- tant points on policy consistency and investor confidence, but his argument overlooks other critical gaps such as Artisanal and Small- scale Mining (ASM) formalisa- tion and infrastructure development," said Mkandawire.

He said Malawi's mining sector is largely dominated by ASMs operating outside formal struc- tures, therefore formalising the sector could generate immediate foreign exchange earnings, em- ployment opportunities and local revenue without waiting for large multinational mining companies

Mkandawire also argued that inadequate infrastructure remains one of the biggest obstacles to at- tracting serious mining invest- ment.

"No serious investors will com- mit capital where they cannot ac- cess reliable power or move goods to market," he said.

Mining is one of the priority sectors under Malawi Vision 2063, with the government tar- geting it as a key driver of eco- nomic growth, job creation and foreign exchange earnings.

Although the sector currently contributes only a staggering 1% to the country's Gross Domestic Product (GDP), Malawi is en- dowed with a variety of mineral resources, including rare earth el- ements, graphite, uranium, coal, limestone, rutile, bauxite and gemstones.

Malawi has only a signle large scale mine, the Kayelekera Uraninium Mine in Karonga in operation. However, studies have been completed on large deposits including Kasiya Rutile-Graphite in Lilongwe, Kanyika Niobium- Tantalum in Mzimba, Kan- gankunde Rare Earths in Balaka and Songwe Hill Rare Earths in Phalombe.

Globe Metals & Mining is advancing physical mine development works at Kanyika Niobium Project in Mzimba, as the Company continues to advance the Project towards commissioning.

Mining & Trade Review established in a visit to the site that Globe has mobnilised heavy equipment to Kanyika and is currently undertaking road grading, access improvements and site preparation activities across a number of work areas.

Country Manager Lisungu Chirwa explains that the current programme includes works on the main access road to Kanyika, internal mine access, preparation of areas for future mine development and the establishment and improvement of supporting site infrastructure.

Main Mine Access Road

Grading and levelling works are being undertaken along approximately 5.8 km of the existing gravel access road extending from the T325 road to the mine site.

The objective of the works is to establish a safe and trafficable access route to the Project suitable for light and medium vehicle use

The programme includes grading, levelling and rectification of sections of the existing road, including addressing major bumps and depressions and improving the road surface and drainage characteristics.

Internal Mine Access

In addition to the main access road, Globe is upgrading approximately 1.4 km of existing internal access road between the main access road and the mine area.

“Sections of the existing road have been affected by previous rainfall and erosion. The works include grading and improvement of these sections to provide a safer and more trafficable internal access route,” says Chirwa.

Together, the main and internal access- road programme covers approximately 7.2 km of existing roads, improving access to and within the Kanyika mine site.

Mine Site Preparation

Physical site preparation activities are also underway across areas designated for fu- ture mine development.

These works include clearing and preparation of the planned:

• Ore stockpile area – approximately 6,500 m²;
• Waste mining area 1 – approximately 14,000 m²; and
• Waste mining area 2 – approximately 15,800 m²

The designated areas are being cleared of vegetation and topsoil, with topsoil removed from each area to be stockpiled adjacent to the respective site for future rehabilitation.

The two waste-mining areas provide a combined planned cleared footprint of approximately 30,000 m² and are being prepared as mining-ready areas to support future development activities.

The two waste-mining areas provide a combined planned cleared footprint of approximately 30,000 m² and are being prepared as mining-ready areas to support future development activities.

She explains that the areas are planned to support the future extraction of waste rock for use as construction material for Project earthworks, including platforms, terraces and foundations.

Exploration Camp Upgrades Completed

Chirwa says that Globe has also completed a programme of improvements to the existing Kanyika exploration camp to support the increased level of activity at the Project and provide an improved operational base for personnel working on site.

She says The improvements include the refurbishment and upgrading of accommo- dation facilities for up to 12 personnel, to- gether with upgrades to: power supply; water supply; ablution and shower facili- ties; kitchen facilities; and other support- ing camp infrastructure.

“The upgraded camp provides Globe with established on-site accommodation and facilities for Company personnel and contractors and increases the Project's capacity to support ongoing development activities,” Chirwa says.

The site containers will provide additional office and storage capacity to further support activities at Kanyika.

Community Compensation and Relocation Programme

In parallel with the physical development works, Globe continues to progress the community compensation and relocation programme associated with the development of Kanyika.

Charles Altshuler, Interim CEO & CFO of Globe Metals & Mining, comments: “The commencement of these works marks another important step in the development of Kanyika, with heavy equipment now operating on site and key access and mine areas being prepared.”

Together with the completed upgrades to our exploration camp, these activities are increasing our on-site capability and preparing Kanyika for the next stages of development.”

The Ministry of Mining has warned players in the sector against entering into private arrangements to buy or sell mineral rights without following the procedures prescribed in the laws.

The warning follows advertisements and other public communications that certain mining licences or mineral rights are available for sale

In a statement signed by Secretary for Mining Rodwell Mzonde, the Ministry says mineral rights issued by the Government of Malawi under the Mines and Minerals Act, 2023 are subject to specific legal requirements governing their transfer, assignment or disposal.

The Ministry says such transactions should not be treated as ordinary commercial sales because mineral rights are statutory rights granted by the government.

It adds that any lawful transfer or assignment of mineral rights must comply with the Mines and Minerals Act, 2023 and applicable regulations, including obtaining the necessary approvals from the relevant government authorities.

The Ministry has, therefore, urged mineral rights holders, investors, financial institutions and the general public to exercise caution before entering into agreements involving mineral rights. 

It has also clarified that the sale of mining equipment, infrastructure or other business assets does not automatically amount to a lawful transfer of mineral rights.

It states parties that transfer or acquire mineral rights outside the requirements of the law may be subject to enforcement measures. 

It says the warning is part of efforts to ensure transparency, accountability and proper administration of Malawi's mineral resources.

Minister of Mining Thoko Tembo announced in Parliament that Government is executing enforcement measures against Rift Valley Resources Development for allegedly transferring the mineral rights for Kangankunde Mine in Balaka to ASX-listed Lindian Resources without following appropriate procedures.

“Acquisition of shares in a company does not automatically transfer the mineral licence. Tembo told Parliament.

Malawi has also seen a number of corporate acquisitions this year with ASX-listed Auking currently in the process of taking over Green Exploration Limited, a subsidiary of ASX-listed Tusker Minerals that is managing its exploration prospects in Malawi including Tundulu in Phalombe, Machinga and Salambidwe.

ASX listed- Tusker Minerals, an African-focused explorer advancing a portfolio of critical mineral assets,  has entered into a binding Share Sale Agreement with another Aussie-listed firm AuKing Mining under which AuKing will acquire 100% of the issued shares in Green Exploration Limited (GEL), a wholly owned subsidiary of Tusker’s Australian Subsidiary Green Exploration (Australia) Pty Ltd.

Tusker Minerals Chief Executive Officer Cliff Fitzhenry says the expanded transaction supports the company’s decision to streamline its portfolio. He says the sale gives the Machinga, Ngala Hill, Salambidwe and Karonga projects a dedicated owner while Tusker continues to concentrate on its priority rutile projects.

"This expanded transaction builds on our disciplined approach to portfolio optimization. By selling GEL, we transfer the Machinga REE assets together with Ngala Hill, Salambidwe and Karonga to a dedicated owner, while retaining full exposure to our high-priority Mzimba rutile projects. The structure delivers non-dilutive funding, sharpens our focus on titanium feedstock, and preserves meaningful upside to rare earths and the Ngala Hill opportunity through our ongoing equity and performance share position in AuKing."

Tusker Minerals is an African-focused explorer building a portfolio of large-scale titanium mineral projects across Cameroon and Malawi. The Company’s portfolio comprises the Douala Basin Heavy Mineral Sands Project and Central Rutile Project in Cameroon, together with the Mzimba Rutile Project in Malawi. Tusker is focused on discovering and advancing globally significant sources of natural rutile and other valuable titanium-bearing minerals.

Fitzhenry says: "This expanded transaction builds on our disciplined approach to portfolio optimisation. By selling GEL, we transfer the Machinga REE assets together with Ngala Hill, Salambidwe and Karonga to a dedicated owner while retaining full exposure to our high-priority Mzimba rutile projects. The structure delivers non-dilutive funding, sharpens our focus on titanium feedstocks, and preserves meaningful upside to rare earths and the Ngala Hill opportunity through our ongoing equity and performance share position in AuKing.”

Malawi has a number of potential rare earth prospecting sites in the Southern Region within the geological zone dubbed the Chilwa Alkaline Province.