Mining & Trade News

Introduction

In 2024, the Malawi government launched the Agriculture, Tourism and Mining (ATM) strategy as a vehicle to accelerate the country towards the 2063 vision. It was the first time mining was being elevated to the level of long-prioritised industries like agriculture, a clear statement by policymakers recognising the significant potential of Malawi's mineral resources in transforming the country's socio-economic status. However, much of this attention has been directed toward the conventionally defined critical mineral resources like rare earths, rutile, graphite, and others. This focus is not misplaced. But it is incomplete.

There is a category of mineral resources whose strategic importance is more immediate and far less discussed: agrominerals. Agromineral resources are minerals and rocks that enhance soil productivity both chemically by providing nutrient sources to soils and plants and physically, by improving soil physical properties. In short, they are the raw material foundation of inorganic fertilizer production. With the exception of nitrogen, every major plant nutrient is derived from mined minerals. For a country where agriculture underpins the livelihoods of over 80% of the population, the question of where Malawi sources its fertilizers is a question about national survival. This article argues that agromineral resources are Malawi's most strategic and critical mineral resources, and that the country has both the geological endowment and the policy opportunity to act on that recognition.

Malawi's inorganic fertilizer requirements are split roughly equally between urea, which supplies nitrogen, and NPK-based products, which supply phosphorus and potassium, this article focuses on the latter. Nitrogen is synthesised from atmospheric gas through an energy-intensive industrial process, hence presents a more complex domestic production challenge and falls outside the scope of this discussion.

Agrominerals as Malawi's Most Critical and Strategic Resources

The persistence of hunger in a country endowed with arable land, reliable water sources, and agromineral potential is not merely a humanitarian concern, it is an economic one with measurable consequences at every level of national life. A population that cannot meet its basic nutritional needs cannot learn, work, or invest productively. This is not a theoretical proposition; Malawi's own data bears it out.

Agriculture contributes between 23% and 33% of GDP, rising to nearly 49% when the broader food system is included. With over 80% of the population dependent on rain-fed agriculture, fertilizer price shocks frequently translate into national economic disruptions. A report by the African Union Commission (AUC, 2015) titled The Cost of Hunger in Africa revealed that malnutrition costs Malawi 10.3% of its annual GDP. Independently, a panel of expert economists at a Copenhagen Consensus Conference in 2008 concluded that addressing malnourishment should rank among the top priorities for policymakers and development partners, given its compounding effects on health, schooling, and labour productivity.

Food shortages drive inflation, particularly in maize. During supply crises, maize prices have risen sharply, eroding household purchasing power across income groups. At the same time, reduced domestic food production forces the country to import maize, straining the limited foreign exchange reserves which are largely earned through agricultural exports which tightens the fiscal position at precisely the moment when food insecurity is most acute.

Research by the MwAPATA Institute and Michigan State University's Food Security Group found that 90% of the year-on-year increases in domestic fertilizer prices in Malawi are attributable to external factors like changes in global fertilizer prices, international freight costs, and Kwacha depreciation. Only 10% reflects changes in domestic margins. Supply chain disruptions, exemplified by the Russia-Ukraine war, have in the past delayed fertilizer arrivals past optimal planting windows, with direct consequences for yield. This means that Malawi's fertilizer price environment is almost entirely determined by forces outside its control. No subsidy programme, however well-designed, can insulate smallholder farmers from a structural vulnerability of that magnitude over the long term. Tellingly, despite the compelling economic case for food security interventions, investments with more visible short-term returns continue to take precedence in fiscal budgets.

The lack of viable substitutes for major plant nutrients, the centrality of fertilizer to Malawi's economic stability, and the structural supply chain vulnerability created by near-total import dependence collectively make agrominerals the country's most critical and strategically important mineral resources. This assessment, however, is not unique to Malawi. The USA, EU, and several other major economies have formally added phosphate and potash minerals to their critical minerals lists in recognition of exactly these dynamics. The difference is that those countries have acted on the classification. Malawi has not.

Malawi's Agro-Mineral Resources Potential

Malawi's position within the Chilwa Alkaline Province (CAP) gives it a geological endowment that is relevant to both technology minerals and agrominerals. The carbonatite and alkaline intrusions of the CAP are enriched in the macronutrients that are most critical to agriculture. Rock phosphate deposits have been identified at Tundulu and Songwe Hill. In addition, Lindian Resources' Kangankunde REE project will generate a phosphate by-product as part of its processing stream.

Critically, a 2020 study conducted by Dr Annock Chiona and colleagues at Newcastle University concluded that nepheline syenites from the CAP intrusions are high-potential alternative potash sources (Figure 1).

Figure 1: Distribution of carbonatite and alkaline intrusions in Malawi. The intrusions indicated with asterisk (*) are known nepheline syenites while those indicated with double stars (**) comprise both carbonatite and nepheline syenite.

Source: A.G. Chiona, et al. (2020). Petrology and geochemistry of selected nepheline syenites from Malawi and their potential as alternative potash sources

Beyond phosphate and potash, Malawi hosts a range of other agromineral deposits whose distribution and agricultural applications are summarised in Table 1 below.

Toward a National Agrominerals Strategy

The policy reforms required to develop Malawi's agromineral potential are not uniform in their time horizons. Some interventions can yield results in the short term; others require a decade or more of sustained commitment. A coherent national strategy must address both, sequencing actions according to what is immediately achievable while building toward structural self-sufficiency.

1. Exploration as a Strategic Priority

Given their national importance, agrominerals should be formally classified as strategic mineral resources, with government taking the lead in exploration through the empowerment of the Malawi Mining Investment Company (MAMICO) and the Geological Survey Department (GSD). Government investment in exploration will reduce risk, establish the evidence base, and create the necessary conditions to attract private capital into mining, downstream processing, and manufacturing.

2. Establishing a National Fertilizer Manufacturing Entity

Malawi should establish a state-owned fertilizer manufacturing entity to ensure reliable and affordable supply for domestic agriculture. The case for state leadership rests not on ideological grounds but on structural ones: fertilizer production in a food-insecure, landlocked country is a matter of national security, and national security objectives are consistently subordinated when production decisions are governed solely by commercial returns.

The private sector has already recognised the opportunity that government policy has yet to fully act on. Napoleon Dzombe's Mtalimanja Holdings is constructing a fertilizer manufacturing plant in Dowa. The plant will process imported raw materials, and however efficiently it operates, if the phosphate and potash inputs feeding it are sourced entirely from overseas, fertilizer prices and availability will remain vulnerable to supply chain disruptions. The missing link is domestic raw material production from Malawi's own geological endowment, and that is precisely where state intervention becomes indispensable.

Malawi's history with state-owned enterprises carries cautionary lessons that this proposal must take seriously and plan for deliberately. The entity should be established with an independent board appointed on technical and commercial merit, ring-fenced funding drawn from a dedicated levy on fertilizer imports, and a performance mandate tied explicitly to fertilizer price stability and domestic raw material utilisation rather than to revenue alone. A joint venture structure in which a strategic technical partner holds a minority stake alongside the state would introduce private sector discipline and operational expertise while preserving public control over the mandate. Botswana's Debswana model, in which the state and De Beers each hold 50%, offers one precedent for how state ownership and private technical competence can be structured to serve national strategic objectives without sacrificing operational credibility.

The investment case, when set against current subsidy expenditure, is more achievable than it may appear. The 2025/26 budget allocated MK 241.07 billion, approximately $139 million, to Farm Input Subsidy Programme (FISP) after a mid-term increase of 116%. That is a single season's subsidy commitment. Minbos Resources' phosphate fertilizer manufacturing plant in Angola, producing granulated phosphate fertilizer from domestically mined rock, was capitalised at $8 million in plant costs with total project investment under $65 million, within the range of what Malawi currently spends subsidising imported fertilizer in a single year.

3. Leveraging Agromineral By-Products from Existing Mining Operations

Developing mining projects takes time, often up to a decade from exploration to production, yet Malawi's food security needs are immediate. A practical near-term intervention is to leverage existing and pipeline mining operations to secure agromineral by-product streams while domestic capacity is being developed.

A clear example is Lindian Resources, which has indicated that its processing activities through the SARECO MREC facility will generate a phosphate-rich by-product stream with potential for fertilizer application. The company has already signalled engagement with stakeholders on offtake agreements with fertilizer distributors in Kazakhstan. For a country with a critical need for phosphate fertilizers, allowing such products to be fully absorbed into external markets without negotiating a domestic supply allocation would represent a material strategic oversight. Government should proactively engage with Lindian and similar operators to secure a portion of these materials for the domestic market at preferential terms, providing an immediate bridge while local agromineral industries are developed.

Similar engagement, whether through MDAs or other instruments, should be initiated for the Songwe and Tundulu projects, whose geology carries phosphate by-product potential alongside primary rare earth targets. The principle should be established as policy. Where mining operations generate agromineral by-products, domestic food security interests take precedence over full export allocation. This is not an unusual position, many resource-producing nations apply analogous domestic supply obligations to strategic commodities.

4. Empowering Artisanal and Small-Scale Miners

A critical but underappreciated component of an agrominerals strategy is the financial support and market integration of artisanal and small-scale miners (ASMs) already supplying agricultural minerals domestically. At present, there is a clear structural disconnect between local mining capacity and industrial demand.

Familjisa, for example, produces powdered gypsum for agricultural use, yet fertilizer blending companies continue to import gypsum at higher cost. Addressing this requires government support to integrate ASM domestic agromineral supply into the national fertilizer value chain.

Conclusion

The critical minerals conversation in Malawi is, in its broad direction, a sound one. Developing the country's geological endowment for economic benefit is a legitimate and achievable policy goal. But strategic clarity requires honest prioritisation, and on that measure, the current framing is incomplete.

What is required is a shift in policy framing: from fertilizer as a welfare expenditure to fertilizer raw materials as a strategic asset; from imported inputs as the default to domestic production as the long-term objective; from reactive subsidy management to proactive resource development.

Feeding the future of Malawi is a complex undertaking, but it is an achievable one. The minerals needed to begin are already in the ground. What remains is a decision by government, policymakers, and the private sector to work together so that Malawi can feed itself from its own natural resources.

Government’s deployment of Malawi Defence Force soldiers in small-scale mining areas in order to bring sanity in the activity has sparked debate with civil society organisations expressing concern over potential human rights violations while the miners are pleading for dialogue with the authorities.

Eye witnesses have confirmed incidents where by soldiers have destroyed buildings and detained artisanal and small-scale miners (ASMs) suspected of unlawful practices in mining hotspots in districts such as Mzimba and Kasungu.

The Ministry of Energy and Mining states in a Press Release that the Malawi Government has established a joint task force operation codenamed “Operation Samala Mgodi” which is aimed at strengthening enforcement mechanisms, curbing illegal mining, and preventing the smuggling of unprocessed stones across the country’s boarders.

The Press Release signed by Principal Secretary Emmanuel Matapa says this operation is meant to address the growing challenge of illegal mining in line with the Executive Order issued by the State President Arthur Peter Mutharika, which prohibits the export of all raw and unprocessed minerals.

The operation is being led by MDF with support from the Malawi Police Service, Immigration Department, National Intelligence Service, Malawi Prison Service and the Department of Mining in the Ministry.

“To empower communities in the targeted mining sites, the Government is establishing registered mining cooperatives to formalize ASMs. These cooperatives will provide a lawful channel for mining operations and enable the Government to purchase minerals for value addition, improved traceability, and enhanced revenue collection ensuring the sector contributes meaningfully to national development,” says Matapa.

But while welcoming Government’s initiative to curb illegal mining, Natural Resources Justice Network National Coordinator Kennedy Rashid Rashid in an interview suggests police officers, trained for law enforcement and judicial processes are more suitable for the operation than the military.

“It is likely that the involvement of soldiers is associated with human rights violations because the soldiers are not specifically trained for that role, which is of the MPS officers,” he says.

Landirani Banda, a victim, complains to Mining & Trade Review over the loss of K800,000 and personal belongings, including food and solar panels seized during the operation.

Federation of Artisanal and Small-Scale Miners in Malawi (FASMIM) President Percy Maleta bemoans the launch of the MDF headed operation saying Government needs to use contact and dialogue to bring sanity to the industry.

“Arresting artisanal miners contradicts the government's efforts to form ASM cooperatives."

He wonders why Government is arresting ASMs without licences when it suspended issuing of mining licences pending an audit of the cadastral portal.

"There is no licence for ASMs in the country, so who is an illegal miner?" Maleta questions.

In a Press Statement, Maleta says simply militarizing the fight against illegal mining risks pushing miners further into the shadows. Instead the federation is advocating for a strategy that focuses on formalizing the sector and empowering miners with access to licenses, finances and fair markets.

He says Government needs to deal with the root causes of illegal mining instead of using militarization observing that illegal mining and smuggling are symptoms of deeper structural challenges, including limited access to licensing, lack of financing, and inadequate market systems.

The federation has since called for dialogue between the government and ASMs in order to create inclusive platforms where all parties can sit at the table, engage constructively, and agree on practical and mutually beneficial solutions.  

“Restricting miners and traders from accessing export markets and earning a livelihood without providing viable and accessible alternatives, risks pushing them further into illegality,” states Maleta.

 The ASM sector is crucial to Malawi's economy, employing an estimated 40,000 and contributing to the country's Gross Domestic Product (GDP) though it is dogged by a myriad of challenges including informal practices, poor health standards, and environmental concerns.

But Matapa maintains that Operation "Samala Mgodi" has clear objectives which include: combat illegal mining activities to identify, monitor and dismantle illegal mining operations across the country; protect the environment to prevent the degradation and pollution of rivers, land and other natural resources, resulting from unlawful mining practices; and to enforce environmental regulations to ensure strict compliance with environmental laws including the safe and regulated use of mercury and other hazardous substances in mining activities.

The other objectives include to safeguard national revenue to curb revenue losses by addressing unlicensed mining and the illegal export of raw and unprocessed minerals; promote local employment opportunities to encourage formalization and regulated mining activities that generate decent jobs and sustainable economic benefits for Malawian communities; and protect children from exploitation to eliminate child labour in mining and uphold the safety, rights and well-being of children.,

He says these objectives reflect the government's commitment to responsible mining that benefits Malawian communities while preserving the environment.

A Defining Moment for Malawi’s Mining Sector

The global transition toward renewable energy is reshaping demand for mineral resources in unprecedented ways. Critical minerals such as lithium, graphite, rare earth elements, and niobium are now central to the production of electric vehicles, wind turbines, and solar panels. For Malawi, this transformation represents more than a market opportunity. As articulated in my previous two series, it is a defining moment that could reposition the country within global energy and industrial systems, and subsequently economic development in the long run.

Yet, history offers a cautionary tale. Resource-rich countries have often experienced extractive booms that generate wealth without development, leaving behind environmental degradation and socially fragmented communities. As Malawi’s mineral sector expands, the central question is no longer whether the country will participate in the energy transition, but whether it will do so on terms that are equitable, sustainable, and nationally beneficial.

An Emerging Critical Minerals Hub

Malawi is increasingly establishing itself as a significant player in the global supply of energy transition minerals. Projects such as the Kasiya rutile-graphite development (one of the largest of its kind globally) highlight the country’s strategic importance in supplying materials essential for battery technologies and solar applications. Similarly, rare earth projects at Kangankunde and Songwe Hill are expected to contribute key inputs for electric mobility and renewable energy systems, particularly in the production of permanent magnets used in wind turbines and electric vehicles. These two rare earth projects stand out as alternatives to the China’s dominance. Taking advantage of this to transform our economy is paramount if the resources are well managed. The question that I address in this third series is: Can Malawi move towards a critical minerals resources governance that positions the interests on its populace and economic development first? How does such a governance framework look like? It is a policy and its implementation that is a game charger for economic development. In this series I present a few alternatives to a meaningful mineral resource governance framework.

Why Policy—Not Just Minerals—Will Shape Economic Outcomes

While the scale of Malawi’s mineral endowment is significant, minerals alone do not guarantee development. The determining factor will be the strength and direction of mineral resources policy and most importantly, implementation. Without deliberate and forward-looking governance, Malawi risks reproducing familiar patterns of extractivism. The historical imperialists patterns of exporting raw materials with limited domestic value addition, experiencing environmental degradation, and marginalizing local communities from decision-making processes.

Conversely, effective policy can transform mineral wealth into a foundation for inclusive growth, industrial development, and environmental sustainability. The challenge, therefore, lies not in resource availability, but in the ability of institutions to govern these resources in ways that align national development priorities besides the global energy demands narratives.

Policy Contribution Pathways to a “Just” Energy Transition

For Malawi’s critical mineral wealth to contribute to the much-anticipated energy transition while prioritizing justice and equality of all humans, there is need for a deliberate reconfiguration of mineral governance, anchored in five key policy directions.

First, Malawi must move beyond raw mineral exports by prioritizing value addition and beneficiation in-country. With this point in mind, it should be acknowledged that mineral processing is an energy intensive venture. Therefore, availability of stable energy is key to this vision. But still processing minerals domestically, even if not at market-ready products but few steps in the value chain can never be overemphasized. It creates jobs, substantial revenue beyond mineral royalties and uplifts industrial development locally.  This approach also positions Malawi more competitively within global value chains that increasingly favour processed and semi-processed materials.

Second, mineral-host community participation must be institutionalized as a core component of mineral governance. Mining-affected communities should not be treated as passive stakeholders but as active participants in decision-making processes. This includes establishing clear benefit-sharing mechanisms, strengthening local consultation frameworks, Free, Prior, and Informed Consent (FPIC) and ensuring that land-related rights are respected and protected. Inclusive governance is essential not only for social justice but also for maintaining the legitimacy and long-term viability of mining operations through social license to operate for exploration and mining companies.

Third, environmental governance must be strengthened to ensure that sustainability is more than a rhetorical commitment. Robust Environmental Impact Assessment (EIA) processes, enforceable rehabilitation requirements, and the introduction of mine closure bonds are critical for mitigating long-term ecological damage. At the same time, Malawi should explore circular economy approaches, including the reuse of mine waste and tailings, to minimize environmental footprints while creating additional economic value. The time for setting these out in our governance framework is now.

Fourth, Malawi needs a comprehensive national critical minerals strategy. Such a strategy should identify priority minerals, define clear investment pathways, and align mining policy with broader energy and industrial development goals. By doing so, Malawi can position itself as a reliable and responsible supplier in an increasingly competitive global market for critical minerals.

Finally, transparency and accountability must be strengthened across the mining sector. This includes improving contract negotiation capacity, ensuring open access to mining agreements, and aligning with international transparency standards such as the Extractive Industries Transparency Initiative (EITI). Strong governance institutions are essential for preventing revenue leakages and ensuring that mineral wealth translates into tangible development outcomes.

A Model Beyond Malawi

The policy choices Malawi makes today will have implications beyond its borders. Across Africa and the Global South, countries are grappling with the challenge of supplying critical minerals for global decarbonization while avoiding the socio-environmental costs traditionally associated with extractive industries.

If Malawi succeeds in aligning mineral development with principles of justice, sustainability, and inclusive governance, it could provide a compelling model for how resource-rich countries can participate in the energy transition without compromising local livelihoods or environmental integrity. In this sense, Malawi’s experience could contribute to a broader rethinking of how mineral resources are governed in the context of global climate action.

Conclusion: Defining the Terms of Transition

The energy transition is often framed as a technological shift, but it is equally a governance challenge. For Malawi, the opportunity lies not only in supplying the minerals that power renewable technologies, but in shaping the conditions under which those minerals are extracted, processed, and distributed. A just and sustainable future will depend on policies that place communities at the center, protect the environment, and ensure that mineral wealth contributes meaningfully to national development. If these conditions are met, Malawi can move beyond being a resource supplier to becoming a leader in responsible mineral governance in the era of global energy transition. We have the opportunity; the choice is ours.

Civil Society Organisations (CSOs) operating in the mineral sector have asked Members of Parliament (MPs) to implement measures to ensure decentralization of the sector.

The CSOs engaged the parliamentary committee on Natural Resources and Climate Change (NRCC) on good governance in the sector.

Vice Chairperson for Evangelical Association of Malawi (EAM) Rev. Davidson Chifungo said the engagement with the committee was held understanding that the majority of the committee members are either newly elected members or those relocated from other committees.

Chifungo said the Committee plays an oversight role in the sector which should help to ensure that there is localization, accountability and justice in Malawi’s mining and energy sectors.

He said: “We wanted the committee to fully understand what localization is, as it means bringing control, decision making and benefits closer to local communities.

“They also have to understand that localization involves participation of local governments, traditional leaders, and citizens, as well as promoting ownership, inclusion, and fair benefit sharing.”

Chifungo stressed the need for decentralization saying it strengthens accountability and transparency within the sector.

He said decentralization improves service delivery and local oversight; creates opportunities for community empowerment, and encourages ethical management of resources.

Chifungo said: “Currently we have challenges in our mineral sector including; centralized control often limiting local benefits; mining and energy wealth not equitably distributed; weak local capacity and limited transparency and; environmental and social impacts on local communities.”

“As a faith-based organization, we believe parliament is the guardian of Malawi’s mineral wealth which should help to ensure laws are followed, revenues are transparent, communities are benefiting and the environment is protected.”

MEAL Officer for Natural Resources Justice Network (NRJN) Biswas Ishmael concurred with Chifungo on the major oversight role played by parliament in asserting the system of checks and balances on the executive branch of government and as the defender of citizens’ interests.

Ishmael equipped the committee on Political Economy Analysis (PEA) of the mining sector for them to understand how power, incentives, and institutions shape the governance and economic outcomes of mining.

He said PEA goes beyond technical feasibility to analyse how government, companies, and local communities interact to distribute the costs and benefits of extraction.

Ishmael said: “The PEA of the mining sector is currently facing governance and institutional vulnerabilities including incentive problems whereby institutions governing mining often face conflicts of interest, and the lack of accountability or weak institutional capacity can lead to poor policy implementation.”

“PEA has also vulnerability whereby international mining companies often hold significant political power and influence over governments, particularly when governments are eager for investment.”

“Despite bearing the brunt of negative environmental and social impacts, local communities frequently have minimal, non-transparent roles in decision-making and limited access to information regarding mining policies.”

Committee Chairperson Tiaone Hendry hailed the meeting saying some of the issues brought before them were new to the members.

Hendry assured the CSOs to engage the Ministry of Energy and Mining and also consider visiting some mining sites as part of their oversight role to bring sanity in the sector.

“They have shared with us some of the information that is new to us and we have asked them to write to us formally because as a committee we will act based on formal letters.”

“We have to do checks and balances based on the formal communication.  We plan to visit illegal mining sites and other mining companies to appreciate the situation and also want to take into account the Ministry of Energy and Mining so that they scale up security for our minerals.”

“Some of the issues that they have discussed with us are to do with registration and vulnerability especially on how the local communities are not benefiting from the mining sector.”

Hendry urged the CSOs to continue engaging the committee saying it is unfortunate that most of the information on the country’s mineral sector comes from foreign investors.

Sovereign Services has announced that its second year of rehabilitation trials being undertaken in support of the Kasiya Rutile-Graphite Project in Lilongwe is nearing completion during the upcoming harvest season.

The pilot mining, backfilling, and rehabilitation program is a key workstream and input into the Definitive Feasibility Study (DFS), which is being completed under the oversight of the Sovereign and its partnership with global mining giant Rio Tinto.

CEO and MD for Sovereign Services Frank Eagar explains that the rehabilitation trials provide practical, multi-year evidence of Sovereign’s alignment with international rehabilitation, environmental, and community good-practice standards.

Eagar says empirical data from the trials has been used to prepare the Mine Closure and Mine Rehabilitation Plans, which are now integrated into the mining, backfilling and post-mining closure planning – critical components for project bankability and alignment with the standards required by development finance institutions.

The rehabilitation trials demonstrate that all mined out pits can practically be backfilled and rehabilitated in a manner that allows farming to be reinstated quickly. This critical outcome proves that Sovereign can undertake mining while ensuring that all pits are safely closed and thereafter can support a sustainable post-closure land-use.

Eagar reports that the rehabilitation trials have also contributed to a significant community development outcome. After two years of close collaboration, the 28 local farmers involved in the trials have formally requested that Sovereign remains at the trial site and support them in establishing a farmer-based commercial farming co-operative. This represents a strong endorsement of the program’s value and is a central pillar of Kasiya’s social development strategy, demonstrating that the Project can deliver lasting economic benefits to local communities well beyond the mine life.

The outcomes directly complement the recently announced collaboration with the International Finance Corporation (IFC), a member of the World Bank Group, which is supporting integration of IFC Performance Standards into the Project’s DFS and Environmental and Social Impact Assessment (ESIA), and strengthening Kasiya’s pathway to bankable development and international project financing.

Eagar says: ““Sovereign’s primary objective is to deliver sustainable returns for all stakeholders, including shareholders and local communities. Not only will the overwhelming success and empirical data collected through this pilot mining and rehabilitation trial underpin the DFS accuracy, but it also demonstrates that land post mining can be successfully rehabilitated and our ability to improve agricultural productivity. The five-fold increase in maize yields will enable unprecedented and immediate secondary economic benefits. The emerging co-operative model is a practical example of our commitment in action – transforming mined land into more productive farmland while equipping local communities with the skills and infrastructure to thrive independently.”

Proven rehabilitation results

The second year of trials builds on the success of the first year, which delivered maize yields of 5.2 tonnes per hectare versus the regional average of 1 tonne per hectare – a fivefold increase that confirmed post-mining land can achieve superior agricultural productivity compared to pre-mining land.

Eagar explains that Sovereign’s rehabilitation approach is designed to use locally sourced agricultural inputs while maximising long term agricultural sustainability. Lime, fertilizer and biochar were applied during the first year of rehabilitation, with only targeted supplementation in the second year where specific deficiencies in basic nutrients were identified.

All rehabilitation activities were conducted under a no-tillage, minimal soil disturbance principle. No heavy machinery is permitted after final land-forming is done as part of backfilling. Thereafter, all soil remediation activities were undertaken by hand to preserve soil structure and the effectiveness of applied ameliorants. This simple, replicable approach is specifically designed to be adopted and maintained by local farming communities beyond mine closure.

Diversified Cropping System

The second year of trials has expanded the rehabilitation approach into a inter-cropping system, combining Maize with Giant Bamboo (Dendrocalamus asper). The first-year results confirmed that bamboo and maize co-exist with minimal competition, functioning in a symbiotic manner that supports long-term land productivity. Through the intercropping approach, local farmers were able to exceed their usual crop yields, while, in parallel, the Bamboo has been allowed to mature as a long-term carbon and soil remediation solution.

Sovereign also expanded the range of crops grown at the rehabilitation site, including the introduction of drip-irrigation winter crop farming program. The multi-cropping approach provides participating communities with a wider range of food, cash and fodder crops – supporting year-round agricultural viability and the transformation from subsistence to commercial farming on rehabilitated land.

Second-year crop yields are expected to reach, and potentially exceed, the first-year benchmark of 5.2 tonnes per hectare when harvested in mid-2026.

Community Partnership

Farmer engagement and participation are central to the long-term success of Kasiya’s rehabilitation strategy. The rehabilitation approach uses simple agronomic methods carried out largely by hand, ensuring that local communities can sustain and build on the improved farming practices beyond mine closure.

“Sovereign has worked closely with local farmers over the past two years, who have been integral to the success of the rehabilitation program. This deepening partnership has resulted in participating farmers formally requesting that Sovereign remains involved at the trial site and provide support in establishing a farming co-operative – a strong endorsement of the program’s value to the local communities. The development of community-led farming co-operatives forms a central pillar of Sovereign’s post-closure social transition strategy. The Company plans to continue working with local farmers throughout 2026, with a view to establishing a replicable model that can be scaled across the broader Kasiya project area as mining progresses,” says Eagar.

Illegal sand miners in Lilongwe City say they cannot stop mining the development mineral despite receiving orders from the City Council to stop the practice saying that is their only source of living.

Our spot checks in major rivers in Lilongwe including Lingadzi, Lilongwe and Mchesi revealed that the practice is still ongoing unabetted.

At Kawale Bridge, mounds of sand on sale can be seen with the miners present but no action taken.

In Area 47 near the Watchtower Headquarters, miners are also busy mining sand for sale to motorists passing through the Area 47 bridge.

In random interviews, the miners said they are not law breakers but that they just want to earn a living since they have huge family obligations.

“I cater for a family of six without formal employment. If I do not mine sand then I will start stealing. I know if I am caught I will be arrested and worse still can be torched to death. I have been in this business for a very long time and it is the only trade that I know,’ said Wiskess Basikolo at the Area 47 bridge.

Basikolo was flanked by four fellow miners who also agreed with his sentiments that unemployment is what has pushed them into illegal sand mining.

At Kawale bridge, three miners namely Moyenda Banda, Henry Phiri and Emmanuel Makolera disclosed in an interview that they have been in the trade for over 15 years and have been on the receiving end of the law, with their equipment confiscated over four times.

The three revealed that the business thrives during the rainy season when sand eroded from upper areas ends up in the Kawale River.

They said during the dry , the business is very volatile as they have to remove rocks to get beneath the waters to get their treasured commodity.

‘It is not a simple trade. We have to toil to make ends meet. Sometimes we stay for up  to two weeks without selling but since we do not have formal employment, we have nowhere to go. If only government or other institutions could have given us a leeway then maybe we could think of ending this business but for now  alluta continua,’ said Moyenda Banda who is the leader of the group.

Banda claimed that they are aware of the government laws aimed at stopping sand mining in urban areas and that in the 15-years they have been in operation their equipment including shovels and hammers have been confiscated over five times.

“They confiscate our equipment but by the grace of God we get new ones. The media has exposed our plight but the authorities do not want to listen so we have no option but continue doing what we know,’ said Banda.

Lilongwe City Council Public Relations Officer Taonga Jeka confirmed in an interview that the problem of illegal sand mining and quarrying in Lilongwe City is huge and many people have been complaining of the adverse effects brought by the miners.

Some of the effects of the practice highlighted by the public include lessening of  life spans of bridges and roads as well as encroachment into  private areas.

“We are aware of the gravity of illegal sand mining and quarrying. We normally conduct enforcement exercises which have to some extent yielded positive results. We have partnered with several organisations to end this malpractice. Finally when the worst comes to the worst we demolish the mines  so that the miners do not come back,’ said Jeka.

Globe Metals & Mining has announced the results of the Bankable Feasibility Study (BFS) for the Kanyika Niobium Project, which confirms Kanyika as a globally significant, long-life niobium project with compelling economics.

This BFS updates and builds on the feasibility study released in 2021 and is supported by a full technical report.

Charles Altshuler, Interim CEO & CFO of Globe Metals & Mining, said: “The BFS confirms Kanyika as a globally significant, long-life niobium project with compelling economics, low operating costs and a clear, staged development pathway. With a post-tax Net Present Value (NPV) of over US$1 billion, a 48% Internal Rate of Return (IRR) and average net operating costs of approximately US$14.26/kg Nb₂O₅, the Project demonstrates robust economics supplying critical minerals into a marketplace calling for increased supply and diversity. Our phased development approach improves capital efficiency and reduces execution risk.”

“Importantly, Kanyika represents one of the few near-term opportunities to establish a new, large scale source of niobium supply outside Brazil. As demand continues to grow across aerospace, defence, data centres, AI and advanced manufacturing, we are seeing increasing strategic interest in securing long-term, conflict-free supply.”

“Our focus is now firmly on execution, progressing funding, offtake and Engineering Procurement and Construction Management (EPCM) arrangements toward a Final Investment Decision, while advancing early works and procurement to enable construction. We believe the Project is well positioned to transition into development and deliver long-term value for shareholders.

Key Highlights

Financial and operating metrics (on a 100% basis and are stated in real 1 January 2026 terms):

• Post-Tax Net Present Value (NPV)8 (real) of US$1,025M (A$1,464M)

• Post-Tax Internal Rate of Return (IRR) of 48%

• Average annual Earnings Before Interest,Taxes, Depreciation and Amortisation (EBITDA) of US$205M (A$293M)

• Pre-tax NPV8 (real) of US$1,524M (A$2,177M)

• Life of Mine (LOM): 24 years with first production of niobium oxide expected early 2028

• Large scale project generating net sales revenue over LOM of US$6,983M (A$9,975M)

• Gross margin over LOM of US$5,057M (A$7,225M) equating to a 72% gross margin 

• Average annual net operating cost (after tantalum by product credit) of US$14.26/kg Nb₂O₅ - in the lowest cost quartile due to the low strip ratio, 80% Nb₂O₅ recoveries in the concentrator and use of solar power and battery storage (BESS)

• Initial phase capital cost of US$139M (A$199M), comprising capex for the mine and refinery of US$82M, Solar PV and       BESS of US$28M, EPCM & Owner’s cost of US$15M and contingency of US$14M]

Resources and reserves:

• Ore Reserve (BFS): 33.8 Mt at 3,050 ppm Nb₂O₅ and 142 ppm Ta₂O₅, supports a mine life of 24 years

•  2018 Mineral Resource Estimate (MRE) 2 (JORC Code guidelines (2012) compliant): 68.3 million tonnes of       mineralisation with a grade of 2,830 ppm Nb₂O₅ and 135 ppm Ta₂O₅

Project development strategy:

Phased development to reduce upfront capital and execution risk:

• Initial phase: targeted production ~1,502 tpa of Nb₂O₅ (plus ~65 tpa Ta₂O₅) -Equivalent to ~500kt of ore mined and     processed run of mine (ROM) capacity per annum ~33% of full run of mine (ROM) capacity

• Expansion to full scale: targeted production ~3,477 tpa Nb₂O₅ (plus ~ 156 tpa Ta₂O₅), subject to market conditions

 -Equivalent to ~1,500kt of ore mined and processed full   run of mine (ROM) capacity per annum ~100% of full run of mine (ROM) capacity

Strategic and technical strengths:

• A potential globally significant primary niobium and tantalum oxide producer, targeting critical minerals markets across AI, aerospace, defence, superconductors, and advanced manufacturing.

• Fully integrated, on-site mine-to-refinery configuration producing high-purity niobium and tantalum oxide products.

• Provides a conflict-free, traceable and diversified supply  source outside Brazil.

• Completed technical programme including extensive metallurgical testwork and engineering optimisation underpinning a     robust and optimised processing flowsheet, top-quartile recoveries, materially de-risking  execution.

Targeted next steps and timetable:

• Calendar Q2 2026: Continue project evaluation and advance funding, offtake and EPCM negotiations. Complete the   remaining BFS finalisation tasks and progress early development works. Complete technical and commercial framework       required for development.

• Q3 2026: Target Final Investment Decision (FID); execute initial funding and EPCM contracts; commence long-lead     procurement, commence relocation of affected  households in the initial phase.

• Q4 2026: Mobilise contractors and site teams and commence initial phase site works (site establishment, access roads,     camp construction, water supply and  temporary power).

• Q1 2027 to Q3 2027: Major construction activities (civil works, structural steel erection, plant installation, tailings storage   facility, power infrastructure); pre-strip and initial ore exposure.

• Q4 2027: Mechanical completion of major circuits; commissioning preparations.

• Q1 2028: First production and initial revenues; target positive operating cash flow as initial phase reaches steady state.

• Q2 2028 – 2030: Expansion phase construction to reach full capacity; full-scale operations expected in early 2030 (depending on market conditions)

• Mine life through to 2052, with progressive closure and rehabilitation starting from 2049.

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.

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 Development Agreements (MDAs) that include government equity clauses have so far been concluded.

The agreements are for the Kayelekera 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 Project 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 buyer under Reserved 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 multiple 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.

Government has resorted to utlise the new mining law whose development it is finalising to sort out the controversial issues rocking the operations of the world class multimillion-dollar Kangankunde rare earth mine in Balaka

Highly placed sources at the Ministry of Mining are telling Mining & Trade Review that a Bill on the formation of the Mines and Minerals Act 2026 to replace the 2023 Act that will clean all the rot is already finalised for tabling in the next sitting of Parliament.

Lindian is using a medium scale mining licence to operate the world class mine, which is forecast to shoot the junior exploration firm into a rare earth mining giant that will rank among the top 10 rare earth producers in the world.

This has sparked protests among Malawians led by Speaker of the National Assembly Sameer Sulemen who feel that use of such a small licence for a mining project of a huge magnitude will deprive Malawians of benefits that are associated with large scale mining.

As opposed to medium scale, a holder of a large-scale mining licence signs a Mining Development Agreement with government that allows Government to negotiate dues for the host country including state equity.

The sources from the Ministry say in the new Act, Government has reduced the thresholds that qualifies a project as a large scale mine such that, if Parliament does not make amendments to the Bill, all cement producers and mechanised quarry mines will be classified as large-scale miners.

“Lindian will this time fail to escape the trap. They used the court to get the licence after government refused to renew it, and the same law will apply for them to transition to large scale mining.”

“In the draft amendments, we have lowered the thresholds required for large scale mining licence which implies that a number of medium scale licence holders will automatically transition to large scale mining licence holders once the law is enacted, and I confirm that the bill will be tabled in Parliament in the next sitting.”

Meanwhile, Government is pursuing enforcement measures against Rift Valley allegedly for allowing Lindian to use its medium scale licence without following government procedures that involve notifying the Mining and Minerals Regulatory Authority over transfer of rights.

“Government has started the cancellation process for the licence but it is not automatic that the licence will be cancelled. There are notices involved, and the Law provides for a 30-day notice period then the licence holder has to justify why the licence must not be cancelled,” says a highly paced source, who opts for anonymity.
Lindian’s owner and largest shareholder Asimwe Kabunga is brandishing a 2018 Malawi Supreme Court order on social media warning Malawi Government not to tamper with Rift Valley’s Medium Scale Mining Licence which is drawing the wrath of a cross- section of Malawians.

Rift Valley acquired the Kangankunde licence following a protracted court wrangle that saw the court ruling that Government awards the mining hopeful US$100-million after it cancelled the licence. Government just opted to surrender the licence back to the Company.