Mining & Trade News

A Technical Task Force drafting the Sovereign Wealth Fund (SWF) has proposed an implementation plan that will involve hosting the fund at the Reserve Bank of Malawi (RBM) to ensure that it is not mismanaged and fully benefits the country’s economy.

Speaking during the SWF validation meeting on the final feasibility study in Lilongwe, Chairperson for the Task Force Adwell Zembele stressed that establishing the Malawi SWF to save the revenues at RBM will protect it from being used to pay the government’s creditors.

Zembele also elaborated plans to draft MSWF legal, regulatory and governance framework as well as constitute board of directors for the fund.

He said: “Once the MWSWF is established by law, the Board of Directors will be named and begin their work of establishing the sub-funds, first by hiring CEOs and senior managers, then by deciding on key policies of the fund, and disbursing funds.”

Zembele also said there is need to develop operational policies and guidelines, which will include: investment guidelines, risk management strategy, external manager model contract, procurement policy, board procedures, asset valuation guidelines, annual financial reporting template, public communications framework, code of conduct for board, managers and staff and, human resources policy.

 “The MWSWF, if well designed and managed, can be transformative for the country. The scale of the impact of the fund will depend on issues like the mining projects that are developed and their legal terms; the effectiveness of the government to fully collect taxes and royalties; the strength of the fund’s investment guidelines, oversight and transparency; and the fund manager’s competence and levels of effort,” he said.

In his keynote address, RBM Deputy Governor for Operations Kisu Simwaka called for collaboration in order for the fund to successfully impact the national economy.

Simwaka said if the key players join hands in developing the fund with integrity, discipline, and unity, it can help the nation to finance modern infrastructure, build skills for new industries, diversify the economy, reduce dependence on external financing, and unlock the economic potential of every district in the country.

He said: “We are ready and reaffirm our unwavering commitment to championing good governance, financial integrity, and strong institutional stewardship of this national asset. Malawi’s mineral wealth must uplift all Malawians today, and long after we are gone,” he said.

“If we stay united in this purpose, if we remain disciplined in implementation, then years from now our children will look back and say: ‘That was the moment Malawi chose a different future. A future of responsibility. A future of dignity. A future of hope. This is how we turn a mineral opportunity into a permanent national legacy.”

Simwaka hailed progress of some mining projects in the country saying they are symbols of possibilities that will rewrite Malawi’s economic story.

He said the credibility of the fund will depend not only on its objectives but also on its governance saying it is the anchor of Trust.

“A Sovereign Wealth Fund designed for Malawi’s realities gives us three powerful tools of stability, savings and, Strategic investment. The framework presented today from the Mineral Revenue Account to the Earmarking Fund, to the Malawi Investment Fund offers us a path guided by discipline, transparency, and long-term vision. From a macroeconomic standpoint, this is not just good practice but also indispensable for building a stronger, more resilient economy,” Simwaka said.

In his State of the Nation Address (SONA), the state President Peter Mutharika expressed his commitment to establish the fund.

The feasibility study is being supported by Adam Smith International’s Malawi Value Development Office’s Malawi Trade and Investment Programme.

ASX-listed Lindian Resources, which is operating the globally significant Kangunkunde Rare Earth Mining Project in Balaka using a medium scale mining licence obtained from a local company Rift Valley Resource Developments, has threatened to use “legal rights” against Marcel Chimwala, the author of an opinion article that Mining & Trade Review published in its Mining & Social Issues column in mid-April 2026 edition headlined Hungry Hyenas feasting on Kangunkunde Mine.”

A letter from Kalekeni Kaphale Lawyers, acting on behalf of Lindian Resources and Rift Valley Resource Developments queries the article for highlighting issues surrounding Lindian’s use of a medium scale mining licence to run the globally significant Kangunkunde, which is one of the largest rare earth resources globally, and the issue of Lindian giving allowances to government officials mentioned in the article.

It also questions the article for the logic that in using a medium scale mining licence, the Kangankunde Project will deprive the local community of benefits associated with large scale mining such as signing of a community development agreement and mining development agreement.

The letter signed by Dr Kalekeni Kaphale also queries the article for the logic that by purchasing a refinery in Kazakhstan to process Kangankunde ore, Lindian is exporting jobs to that country in so doing depriving Malawi of the technology transfer advantage that could come with a local refinery.

Lindian demanded that the author publishes its response on the article,  

Lindian responds to “ Hungry Hyenas Feasting on Kangankunde Mine” 

Lindian Resources, which is preparing to start monazite mining for rare earth production at Kangunkunde in Balaka through its subsidiary Rift Valley Resource Developments (RVRD), has responded to an article published on Mining & Social Isuues column in Mining & Trade Review issue number 177 entitled “Hungry Hyenas Feasting on Kangunkunde” expressing concern that the Company nor any government official was neither contacted by the writer nor quoted in the article.

THE MEDIUM-SCALE LICENCE: THE LAW IS CLEAR

In a letter signed by its Executive Chairman Robert Martin addressed to the author and Publishing Editor Marcel Chimwala, Lindian dismisses allegations in the article that Lindian is deliberately operating under a medium-scale mining licence to avoid its obligations under a Mining Development Agreement (MDA) and Community Development Agreement (CDA}.

“This allegation is wrong, and it is wrong for a straightforward legal reason: RVRD's current operations at Kangankunde do not meet the production and operational thresholds prescribed under the Mines and Minerals Act (2023) that would require or qualify the project for a large-scale mining licence. The licence classification is not a choice - it is a legal determination based on the scale of the operation. Applying for a licence category that the project does not meet would be legally improper.”

“The Mines and Minerals Act (2023) is unambiguous on this point. MDAs and CDAs, along with government equity participation, are obligations that attach exclusively to large-scale mining licences. They are not triggered at medium scale. RVRD operates in full compliance with the Act.”

“Further, and for the avoidance of doubt, RVRD acquired its medium scale licence before RVRD's shareholders' shares in it were acquired by Lindian. At all material times RVRD, the mining license holder, has availed all data pertaining to the Project as required by law under the Mines and Minerals Act. It is therefore improper to suggest that either RVRD or Lindian have somehow perverted the law or public officers to operate under a lower level license.”

Corruption Allegations: Unsubstantiated, Offensive, And False

The letter states that the article alleges, through unnamed sources. that Lindian has corrupted government officials - through allowances and other means - to secure favourable treatment.

It reads: “We take these allegations made by you extremely seriously and reject them in the strongest possible terms. It is false, it is without evidence. and it was published without any attempt to verify it with us. We reserve our rights pertaining to this allegation by you as it has direct impacts on reputations, company share price and our ability to operate without unfounded, untrue, prejudicial allegations that have now reached a global audience.”

“Lindian is an ASX-listed public company. We are subject to Australian law, Malawian law, and the ASX Listing Rules - all of which carry serious, enforceable consequences for corrupt conduct. RVRD is equally bound by the laws of Malawi. Neither company has ever offered, paid, or authorised the payment of any bribe, inducement, or corrupt benefit to any government official, parliamentarian, or public servant, anywhere. Our governance standards are not aspirational - they are legally binding and actively enforced.”

Lindian, however, admits sponsoring government officials to attend international mining conferences saying this is a declared, legal, and standard practice across the global mining industry which is not conducted covertly as it builds the technical expertise and international networks of Malawian officials responsible for governing a sector that the country is counting on for its economic future.

The letter reads: “To characterise it as corruption is not only inaccurate - it is an insult to the officials involved and to the institutions they represent. It is also shared across all companies that are operating in Malawi.”

“The article also makes reference to unnamed Members of Parliament who allegedly demanded and received payments from Lindian. Neither Lindian nor RVRD has been approached and or made any payment to any parliamentarian outside of lawful. documented, and transparent processes. We reserve our rights on these allegations you have made.”

Processing Arrangements: A Strategic Decision Grounded In Technical Reality

The article claims that by processing rare earths outside Malawi, Lindian is exporting jobs and depriving the country of rare earth processing technology.

But Lindian trashes the assertion saying first, and most importantly, Lindian is processing ore in-country to a downstream stage as current infrastructure, energy, economic and environmental viability allows.

Martin explains that a process plant is currently under construction at Kangankunde that will process run-of-mine ore into a premium monazite concentrate. “This is in-country processing. This is value addition. This is job creation on Malawian soil. The article's suggestion that Lindian is making no effort to process locally is simply not true.”

Lindian owns a downstream hydrometallurgical processing plant in Kazakhstan which will convert monazite concentrate into a mixed rare earth carbonate (MREC). Martin describes this plant as a significant strategic asset hinting that the facility has established, direct access to the specialist chemical reagents, including the specific acids and solvents required for solvent extraction and precipitation circuits, that further downstream rare earth concentrate processing demands.

The letter reads: “These reagents must be available in large, continuous, and precisely controlled volumes. The Kazakhstan plant is built for this. It is not a workaround - it is the right facility for the job, and Lindian has invested in it accordingly.”

“Even more importantly, rare earth hydrometallurgical processing also requires an extremely reliable, uninterrupted supply of water. gas and electrical power at sustained industrial scale. These are not discretionary inputs - the processing circuits operate continuously, and any interruption risks process failure, equipment damage, and substantial product loss. At the scale that Kangankunde requires, this level of water and power reliability and volume is not currently available in Malawi. This is a factual infrastructure position, not a reflection on Malawi's ambitions. It is, in fact, a challenge that the Government of Malawi and its development partners are actively working to address. These facilities are also extremely hazardous and un-environmentally friendly and would require years of environmental work required even to design them, let alone have them approved.”

“We note that in the same edition of your publication, Emmanuel Chinkaka of the Malawi University of Science and Technology wrote independently on page 10 that mineral processing "is an energy intensive venture" and that stable energy availability is the key precondition for domestic processing to be viable. This is a Malawian academic making the same assessment, that informs our current arrangements.”.

Martin also explains that the offtake and processing agreements Lindian has secured are what make Kangankunde commercially viable and bankable. “Without them, there is no mine. Without a mine, there are no jobs in Malawi, no royalties, no taxes. and no community development. These agreements are the foundation of everything the project will deliver for Malawi.”

Community Investment: We Are Proud Of What We Have Built

Lindian also takes a swipe at the article for describing Lindian and RVRD's community investments at Kangankunde as inadequate.

“We disagree strongly, and we suspect so would the community members who have benefited from it. Lindian and RVRD delivered the Project Early Learning initiative, officially launched by Minister of Education Hon. Bright Msaka SC, which included the construction of a brand new school and sanitisation facilities at Kangankunde Primary School and the provision of books, pens, and learning materials to learners. These are permanent infrastructure improvements that will serve the children of Kangankunde for generations. They were not required by law. They were delivered because Lindian and RVRD is committed to being a responsible and long-term partner in this community.”

“Lindian and RVRD also constructed the access road from the M1 to Kangankunde to gravel standards. This road serves the entire community - every farmer, trader, health worker, and family that travels it benefits from it. That road existed before the event, before his visit, and will be there long after. That is what genuine infrastructure investment looks like.”

“All of this has been delivered voluntarily, in advance of any legal obligation, before the Kangankunde project even begins generating revenue. The community of Kangankunde liaise closely through a very effective community engagement plan (CEP) to choose the development priorities that matter most to them, and we will deliver on them. That is our commitment.”

Calls For Licence Revocation: An Irresponsible Suggestion

Lindian also slams the suggestion in the article that Government needs to revoke RVRD's licence and hand over Kangankunde to a "capable investor" describing it as legally uninformed and, frankly, irresponsible hinting that licence revocation under the Mines and Minerals Act (2023) is not a matter of opinion or public sentiment.

“It is a formal legal process that requires a demonstrated basis in law, proper procedure, and a hearing. Lindian and RVRD has done nothing that would constitute grounds for revocation. We are compliant with our licence conditions, current in our obligations to the MMRA, and operating within the full framework of Malawian law.”

“Beyond the legal question, the broader damage that commentary of this kind does to Malawi's investment climate should not be underestimated. Malawi is actively competing to attract serious capital into its mining sector. Investors - the kind who build mines, create jobs, and pay taxes - read publications like this one. When they see calls for arbitrary licence revocation based on anonymous community opinion, it signals risk. Malawi cannot afford that signal. RVRD and Lindian have invested significant time, capital. and trust in this country. We expect the same standard of factual rigour from those who write about us that we apply to our own operations.”

The Ministry of Energy says resumption of oil and gas exploration in the country is awaiting the enactment of a new Law as the Ministry is pushing for finalization of the Petroleum (Exploration and Production) Bill for consideration for tabling in parliament.

Government is working on reviewing the Petroleum (Exploration and Production) Act 2003 to come up with a new Law that is in tandem with current developments.

There is, currently, no hydrocarbon exploration activities in Malawi after foreign mineral exploration companies relinquished their licences several years ago before embarking on any drilling works citing complications regarding the prevalence of Covid-19 pandemic.

However, the Ministry approved the new National Petroleum (Exploration and Production) Policy in 2023.

 In an interview with Mining and Trade Review, Director in the Department of Mines Burnet Msika said the Ministry is pushing to have the new Act in place as a way of ensuring that the policy is effective and efficiently implemented.

Msika said: “Understandably, the Ministry has been and is vehemently pushing for the finalization of the Petroleum (Exploration and Production) Bill for consideration for enactment by Parliament, pursuant to the approval of the new National Petroleum (Exploration and Production) Policy in 2023.

“This is to ensure and safeguard effective and efficient implementation of the aforementioned Policy and enhancement of sound governance and regulation of the upstream petroleum sector in the country.”

Malawi has six oil and gas blocks across the country along the geological zone of the Great African Rift Valley system where the foreign exploration investors conducted preliminary exploration.

Government is planning to re-demarcate the blocks, considered very big, into smaller blocks before awarding them to other investors.

The government is also intending to publish a model petroleum sharing agreement to sign with mineral prospecting firms intending to conduct exploration for oil and gas in the country.

Petroleum resource development, if well managed, has the potential to generate revenue through royalties and taxes; contribution to foreign currency reserves; creation of employment; and transfer of new technologies and skills necessary for socio-economic development of the country.

In view of the foregoing, the National Petroleum Exploration and Production Policy (NPEPP) was developed to provide a new policy direction and guidance in the implementation of interventions in the upstream petroleum subsector.

This is necessary in order to spur socio-economic development as aspired for in Government’s overarching development agenda which is espoused in the Malawi 2063.

This Policy is coming at a time of a renewed interest in the development of the upstream petroleum subsector in the country as well as the rest of Great African Rift Valley Region.

Since the first wave of interest in the development of the oil and gas sub sector in 1980s, there has been an evolution that has necessitated the development of the legal and regulatory frameworks.

It is, therefore, imperative that this Policy should go in sync with the development of new practices in the realms of regulations, science and management covering the whole spectrum of petroleum, and reflecting changes in realities from exploration to exploitation.  

Local artisanal and small-scale miners (ASMs) have welcomed the Reserve Bank of Malawi’s increase of the price that it offers in buying gold from local miners.

The Central Bank buys gold from local ASMs through its subsidiary Export Development Fund (EDF), which has announced an increase in gold purchase price from Mk 400,000 to Mk 570,000 for gold with 95% purity or higher.  

In an interview with Mining and Trade Review, Percy Maleta, President of the Federation of Artisanal and Small Scale Mining in Malawi (FASMIM) acknowledged that the price hike signals a move towards better market access and higher incomes through value addition and structured support.  

Maleta explained that by offering better prices, the Central Bank is fighting gold smuggling by enticing miners who sell gold to smugglers due to better prices.

“While EDF provides a formal channel, many miners still prefer informal routes due to better prices, quicker payments, and fewer barriers, which encourages smuggling.”  

Mwai Zulu, Interim Treasurer of the Gold Mining Association (GMA), echoed Maleta’s concerns urging EDF to expedite processing of payments to the gold dealers.

 “The price adjustment only helps if the price is competitive and payments are quick. If not, miners will still prefer informal buyers.” he said.

Zulu said EDF is not yet the first choice for local miners hence there is a need for the institution to sensitise the miners in gold mining hotspots across the country about its structured market.

He also urged government to create a more favorable environment for ASMs by simplifying licensing and establishing gold buying centers closer to the mining hotspots.  

Maleta also called for strengthening formal markets such as EDF, improving licensing and regulation, investing in processing and value addition, and providing technical and financial support to miners.  

There are a number of informal ASM gold mining hotspots that are sprouting across the country with foreign buyers flooding these sites to buy the precious mineral.

Group Village Headman Saiti of Makanjira told Mining & Trade Review in an interview that  some miners from foreign countries are now invading the Makanjira and Namizimu Forest gold mining site with equipment such as excavators.

ASM illegal gold mining is resulting in a number of cross-cutting issues in the communities including death due to unsustainable mining practices, child labour, drug and alcohol addiction, marriage breakages, increase in school drop-outs, and early pregnancies.

Lotus Africa says it remains on track to deliver nameplate production at Kayelekera Uranium Mine in the second quarter of the year 2026  following consistent performance improvement through the second half of February and into March.

Lotus MD Greg Bittar explains in a Press Release that supply chains for Kayelekera production remain robust, including forward cover for diesel and diversified supply across acid and Sulphur.

Diesel

Lotus has contracted for its diesel requirements through to end June at pricing substantially less than current spot prices. The Company’s diesel supply chain remains intact and Lotus has received no indication of disruptions from diesel suppliers to date. Diesel supply is a key operational focus and in addition to Lotus’ forward order cover, Lotus is putting in place incremental contracts for July but believes it is best to keep a watching brief on price volatility in the near-term before booking further significant supplies.

Sulphuric Acid

Lotus has built up its onsite inventory of sulphuric acid which is supplemented by a significant fleet of supply trucks enroute to Kayelekera. The pipeline of deliveries and orders has not been impacted to date; however, there is pressure on pricing and freight costs. Lotus is working through further orders to minimise third-party acid supply risk.

Sulphur

Lotus has sulphur supply orders in place to end of June, and its two key suppliers have substantial inventory already landed in Tanzania. Lotus’ sulphur volumes are relatively small in the region serviced by East African ports, and neither supplier is indicating any impact at this stage. Nevertheless, Lotus is planning additional supply routes and additional storage for sulphur (including options for offsite storage) to secure maximum inventory availability to support the commissioning of the acid plant from April 2026. Lotus will continue to closely monitor these key items and remains in regular discussions with its suppliers.

Lotus restarted production at Kayelekera in August 2025, on time and on budget. Kayelekera remains the only operating large scale mine in Malawi.

Gemstone miner, ZiGems, has expressed concern over the move by the Mining and Minerals Regulatory Authority (MMRA) to cancel mining licences for those operators considered non-compliant to terms and conditions of their licences.

The MMRA announced in a Press Release that it had completed a nationwide Mineral Licence Compliance Audit covering the period 2020 to 2025.

It reported that the audit revealed widespread non-compliance across the sector, including but not limited to non-payment of ground rent and mineral royalties, failure to submit statutory reports, and holding of inactive or dormant licences.

It, therefore, gave all non-compliant licence holders 30 days to settle all outstanding fees, ground rent, and royalties; submit all outstanding statutory reports; and regularise compliance with all applicable licence conditions.

“Failure to comply within the stipulated period will result in cancellation of licences in accordance with the Mines and Minerals Act, 2023. Affected licence holders will be formally notified through individual notices of cancellation issued to their registered addresses in the Mining Cadastre,” said MMRA.

But Technical Advisor for ZiGems Johnstone Soko said the impact of licence cancellation could be severe and far reaching at a time when many mining businesses are still experiencing the effects of the government export ban on raw minerals, which has significantly reduced access to international markets.

“Any cancellations at this stage will effectively kill the future of most Artisanal small scale mining (ASM) operators who are barely surviving,” Soko explained, warning that this has the potential to wipe out the ASM industry already under strain.

While the MMRA’s move is intended to enforce compliance with regulatory requirements, Soko argued that the underlying causes of non-compliance must first be addressed since many firms are failing to meet the stipulated conditions not out of defiance but due to limited awareness and capacity to properly compile statutory reports.

“Additionally, the financial burden of meeting ground rent obligations has proven challenging for operators in the current economic climate,” he said.

Soko recommended a more balanced approach suggesting that authorities should prioritize stakeholder sensitization, helping firms understand how to compile and submit reports in line with the law.

He also said non- compliant companies should be given adequate time to settle overdue payments before punitive measures are applied.

 “There is a need to for a phased approach starting with education, followed by warnings and fines rather than immediate threats of licence cancellation,” Soko said.

He explained that compiling accurate records and settling accumulated debts require time, particularly for businesses that have fallen significantly behind hence many licence holders are struggling to meet both reporting and financial obligations within the 30-day period.

Clarity of compliance requirements being another key concept raised, Soko argued that existing guidelines do not adequately reflect the complexities of mining operations making it difficult for firms to accurately report their activities.

“The lack of clarity is discouraging compliance altogether, with some operators choosing to continue working informally rather than navigating what they perceive as a confusing system. In extreme cases, businesses are operating without valid licences after expiry, especially if they have already established a foothold in the market,” he said.

A cross-section of stakeholders in the mining sector have expressed concern over government’s intention to sell gold it has bought from Artisanal and Small-scale Miners (ASMs) through the Export Development Fund (EDF), a subsidiary of the Reserve Bank of Malawi (RBM).

Minister of Information and Communication Technology Shadric Namalomba announced that Government is selling gold that is being reserved by RBM to utilize the proceeds from the sale to top up on fuel purchases in light of the acute shortage of foreign exchange, which has resulted in a fuel crisis.

Namolomba made the announcement after Centre for Democracy and Economic Development Initiatives (CDEDI) Executive Director Silvester Namiwa had touched on the issue at a Press Conference in Lilongwe wondering why the country is failing to acquire basic needs including fuel despite reserving the gold and having the potential for increased production from ASM gold mining.

But mining expert Ignatius Kamwanje advised the Government to look for other alternatives that could bring forex rather than selling the available gold which is less than a tonne.

 “Gold reserves are important for a country as a means of  hedging against inflation. The problems arising from selling this gold are that it may push inflation upwards since all the gold will be depleted, may lead to financial independence loss on debt backed assets, and undermine the ability of central bank to gain investor confidence in managing long term risks,” said Kamwanje.

Kamwanje also said if the gold is sold, the country will make loses considering its tactic of buying gold at a higher price than the international market price just to offset smuggling by beating black market rate.

In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga also condemned the idea to sell the gold saying it is the only opportunity to use the mineral to strengthen the country’s local currency.

“Gold is supposed to cushion the strength of the local currency. Ideally it should not be sold. We need to build gold reserves. Gold reserves are crucial for a country's economic stability, serving as an asset against inflation and currency devaluation. We need to diversify our central bank reserves, boost confidence in the national currency, and provide high liquidity during financial crises like the one we have,” he said.

Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera also disagreed with the move saying the challenge that the country has is not just about selling assets but using them wisely to secure long term economic resilience.

 “Instead of rushing to sell, the gold could be used more strategically as bargaining power, for example, RBM could leverage the reserves to negotiate fuel supply contracts, collateralize the gold for short term forex credit lines, or use it to strengthen confidence in Malawi’s external reserves position,” he said.

He added that through the strategy, the gold would have served as a stabilizing asset while the country explores alternatives for accessing fuel and forex, rather than liquidating at a potential loss.

EDF reported gold purchases totaling 620kgs at a total cost of MK175 billion as of April 9, 2026.

Sovereign Services has announced the long-awaited Definitive Feasibility Study (DFS) results for the world-class Kasiya Rutile-Graphite Project, which has unveiled plenty of benefits for Malawi from the planned rutile-graphite mine.

Kasiya, located in central Malawi, hosts the world’s largest natural rutile deposit and the second largest flake graphite deposit. Both titanium and graphite are officially classified as Critical Minerals by the United States and the European Union.

If market conditions prevail, the mine has the potential to generate revenues of approximately US$700 million per year during its initial life of 25 years with the Malawi Government expected to gain from corporate tax, royalties, payroll taxes and a shareholding arrangement with Sovereign Services in accordance with the country’s laws and the Mining Development Agreement (MDA) that it expects to sign with the company before the onset of mining operations.

The study indicates that the local community will also enormously benefit from the mine through job opportunities, corporate social responsibility projects and a community development agreement that Sovereign Services is expected to sign with the Kasiya Community, allocating a fraction of earnings from the mine to the local community in accordance with the Mines and Minerals Act.

The Study results indicate that at steady-state, Kasiya is forecast to deliver approximately 222 kt of rutile and 275 kt of graphite annually – positioning Sovereign as potentially the world’s largest producer of both natural rutile and natural flake graphite.

The study further confirms the capital investments required for rail, roads, power and water infrastructure which will bring positive economic development to the district and export route to the port of Nacala, with substantial secondary economic opportunities.

Managing Director and CEO Frank Eagar commented: “The completion of this DFS marks a defining milestone for Kasiya and for the global titanium and graphite supply chains. To deliver a DFS of this quality, depth and confidence, rarely achieved by a pre-production company, reflects the calibre of partnerships that Sovereign has assembled around this project: Rio Tinto's technical expertise, alignment with International Finance Corporation (IFC) Performance Standards under our Collaboration Agreement, and offtake interest driven by U.S. and Japanese supply chain security priorities.”

“The successful completion of large-scale field trials, combined with the expertise of our experienced owner’s team and the technical support provided by Rio Tinto, reinforces Kasiya’s potential to be a long-life, low-cost, and reliable source of two critical and globally strategic minerals. Kasiya is not simply a mining project – it is a globally strategic asset.”

The DFS outlines a large-scale, long-life operation that delivers substantial volumes of premium quality natural rutile and graphite while generating significant returns across a range of price scenarios.

Eagar explains that while global primary rutile supply is in structural decline, Kasiya’s natural rutile has demonstrated premium chemical characteristics and suitability across all major end-use applications, with high TiO₂ content, low impurity levels, and favourable particle size distribution – positioning it as a preferred high-purity feedstock within a structurally undersupplied market.

Kasiya’s 222ktpa of natural rutile would represent a significant addition to Western-accessible non pigment rutile supply, directly addressing the structural feedstock deficit facing the US, Japanese and European titanium industries.

Graphite is essential to lithium-ion battery anodes, refractories and a range of advanced industrial applications. China currently dominates global natural graphite production and processing, accounting for approximately 77% of worldwide output and an even larger share of battery-grade anode material. The US has designated graphite as a critical mineral and is actively seeking to diversify supply away from Chinese-controlled sources, including through the US$12 billion Project Vault strategic reserve initiative.

Kasiya’s incremental cost of graphite production is estimated at US$216/t. Eagar explains that based on public disclosures by listed graphite developers with studies at or beyond the pre-feasibility stage, this positions Sovereign as the lowest-cost graphite producer globally, including China.

Compared with single-commodity hard-rock graphite operations, Kasiya benefits from a soft, free dig orebody and a simple processing flowsheet. The majority of operating costs are allocated to the primary rutile stream, enabling the production of high-purity, coarse-flake graphite at materially lower costs.

“Independent testing has confirmed that Kasiya graphite performs exceptionally well as an anode material for lithium-ion batteries, while also meeting specifications for traditional industrial markets such as refractories.”

Dry Mining Method Confirmed

Using real-world data collected from the Pilot Mining, the DFS confirms a dry mechanical mining method using draglines and 100t rigid dump trucks. The soft, free-dig saprolite orebody requires no drilling, blasting, crushing or milling. A two-bench approach (5m top cut, up to 15m bottom cut) keeps the draglines above the water table, eliminating the need for production equipment below groundwater level. This represents a significant de-risking step from the hydro-mining method originally considered in the original Pre-feasibility Study (PFS).

No Conventional Tailings Storage Facility

A major advancement in the DFS is the elimination of the conventional Tailings Storage Facility (TSF) leading to a significant reduction in the mining footprint and providing a flexible, lower-risk tailings management solution. All tailings will be stored via hydraulic co-disposal backfilling of mined-out pits, designed in compliance with the Global Industry Standard on Tailings Management (GISTM), aiming for zero harm to people and the environment. The 50:50 fines-to-sand backfill ratio closely matches the existing soil profile, supporting progressive rehabilitation. This has also reduced the raw water dam wall height from 23m to 20.7m and storage capacity from 16.4 to 11Mm³.

Hydropower-Sourced Grid Electricity

The DFS is based on connection to Malawi’s national hydropower grid via a 132kV overhead line to the Nkhoma substation. Electricity Supply Corporation of Malawi (ESCOM) has confirmed significant grid expansion is underway, including a 400kV Mozambique interconnector (2025) and the 375MW IFC/World Bank-funded Mpatamanga hydropower station (2030). Grid connection delivers substantially lower power costs and a favourable emissions profile.

Processing Flowsheet

Ore will be trucked to the processing plant for scrubbing and screening before entering the Wet Concentration Plant (WCP). The WCP employs a low-energy gravity separation process to produce a Heavy Mineral Concentrate (HMC). The HMC is then fed to the Mineral Separation Plant (MSP), where electrostatic and magnetic separation yield premium-quality rutile (+95% TiO₂), suitable as a direct feedstock for titanium sponge production or use in high-end titanium alloy applications, including aerospace and defence. Graphite-rich concentrate recovered from the spirals is processed in a dedicated flotation plant, producing a high-purity, high-crystallinity, coarse-flake graphite product. Independent testing has confirmed that Kasiya graphite performs exceptionally well as an anode material for lithium-ion batteries and meets specifications for traditional industrial markets such as refractories.

Dual Plant Configuration

The DFS confirms a staged development with two 12Mtpa processing plants – South Plant from Year 1 and North Plant from Year 5 – positioned at the respective resource centres of gravity to minimise haulage distances and costs. The configuration provides operational flexibility and a phased capital profile.

Logistics and Export Infrastructure

Kasiya’s products will be railed directly from a purpose-built dry port at the mine site eastward along the Nacala Logistics Corridor (NLC) to the container terminal at the Port of Nacala on the Indian Ocean. The existing heavy-haul rail line and deep-water port provide a proven, operational export route – a significant infrastructure advantage over comparable undeveloped projects. Product transport cost is estimated at US$117/t product (FOB Nacala).

Kasiya is positioned with access to two rail corridors for the transport of rutile and graphite products to export ports – the NLC and the Sena Rail Line leading to the Port of Beira (the Beira Corridor). The NLC provides the preferred logistics route, offering a direct connection to the deep-water Port of Nacala on the Indian Ocean for exports to global markets. This well-established, operational corridor delivers substantial capital and operating cost advantages for the Project. To access the NLC, Sovereign plans to construct a 6 km rail spur linking the mine site and processing plant directly to the main line, significantly improving the efficiency of both inbound and outbound freight movements relative to road transport alternatives.

Rutile and Graphite Pricing

The DFS adopts a life-of-mine weighted-average realised rutile price of US$1,670/t (real, FOB Nacala), based on an independent TZMI market study. Japanese titanium metal producers OSAKA Titanium Technologies Co., Ltd. (Osaka Titanium) and Toho Titanium Co., Ltd. (Toho Titanium) are expected to drive the growth in rutile demand for titanium manufacturing over the next 10 years. Graphite pricing is based on an independent Benchmark Minerals Intelligence (BMI) price forecast, resulting in a life-of-mine average price of approximately US$1,288/t (FOB Nacala) – effectively in line with the OPFS assumption of US$1,290/t. The graphite basket price is derived from FOB China benchmarks, adjusted for an East Africa premium and weighted by Kasiya’s concentrate flake size distribution.

IFC Performance Standards Integrated into Design

The DFS has been prepared in alignment with IFC Performance Standards, with a comprehensive Environmental and Social Impact Assessment (ESIA) nearing completion and the full suite of environmental and social specialist studies completed. Sovereign’s established on-the-ground social team of 22 core staff and 90-member Community Liaison Team represent a level of social preparedness rarely achieved at DFS stage.

Mining and Rehabilitation Trials – Proven in Practice

Large-scale mining and rehabilitation trials were completed during the DFS period, covering excavation, backfilling, soil remediation and crop establishment. During Pilot Mining, the Company successfully completed dry and hydraulic mining trials, excavating a test pit at Kasiya. The test pit covered the planned area of 120 metres by 110 metres and was excavated to a depth of 20 metres through the weathered ore at Kasiya. Post mining, the rehabilitated pit has achieved maize yields of 5.2 tonnes per hectare within six months of backfilling – over five times the local community average of approximately 1 tonne per hectare. The Pilot Mining validated the progressive rehabilitation approach and confirmed that mined land can be returned to productive agricultural use within one to two years.

Kasiya has been designed to minimise social and environmental impact. The operation will systematically extract and process ore, then progressively backfill and rehabilitate the open pits. The objective of the Project is to minimise disturbance to land resources, while keeping the active mining footprint as small as practically possible.

Human Resources

The project's proximity to Lilongwe offers several benefits, including access to a large pool of professionals and skilled tradespeople. Malawian national employees will be employed predominantly from the Kasiya area and the capital city of Lilongwe.

During construction, Kasiya will employ a total of 2,000 workers, the majority of whom will be employed in the construction of plant and infrastructure. During steady-state operations, Kasiya will employ nearly 1,100 people, the majority of whom will be employed in plant operations. Expatriates make up approximately 9% of the planned workforce. Similar projects in Africa typically witness a flow-on effect for employment in local communities. For every person employed directly in the project, a significant multiplier of people will be employed in indirect jobs supporting the project.

Sovereign has structured training and skills transfer programs covering on-the-job training for full time employees, as well as programs for local graduates and interns. The programs will focus on building skills capacity in the surrounding community. The Company currently has 80 full-time employees and is an equal opportunity employer with a gender diverse workforce. Currently, 30% of Sovereign’s professional Malawian staff and at least 50% of our regular interns are female.

Soils and Rehabilitation Stewardship

Sovereign is committed to ensuring that all mined-out land is appropriately rehabilitated to support sustainable farming practices after closure. The Company has adopted agronomist principles and practices to revitalise local soils. Sovereign will return a good mix of soils as part of the backfilling and introduce carbon and soil nutrients through organic and inorganic inputs.

Local communities will expect that any mined land be restored post mining, such that it is available for agricultural use. This is a foundational commitment made by Sovereign, and all proposed soil remediation and rehabilitation work has been planned to restore the land so that it yields improved agricultural outcomes.

To meet this commitment, the proposed soil remediation and rehabilitation approach is based on sound, tested farming and soil husbandry methods commonly adopted in both small-scale and commercial farming in Malawi. Through Sovereign’s on-site rehabilitation trials, the Company has tested a range of remediation and rehabilitation options over two farming years.

Heavy rare earth minerals potential not included in DFS

Sovereign recovered monazite concentrates from rutile processing circuit with exceptionally elevated levels of heavy rare earths during the study with Dysprosium, Terbium and Yttrium now a potential third revenue stream at minimal incremental cost — all three elements subject to Chinese export restrictions.

A dedicated monazite evaluation program is now underway to assess scale, recovery and economic potential.

I came across this post on LinkedIn by Mr Asimwe Kabunga; a Tanzanian born Entrepreneur who is the Founder and largest shareholder in Australian-listed Lindian Resources, which is preparing to open the Kangankunde Mine poised to become one of the largest and most significant rare earth mines in the World located in Balaka District.

Kemerton’s Cautionary Tale: Why African Downstream Ambitions Need a Reality Check

I am just leaving Investing in African Mining Indaba in Cape Town, and the message from some African governments was clear: "No more raw exports.We want downstream precessing."

It sounds great in a speech. It wins votes. But this week, the world’s largest lithium producer, Albemarle, gave us a $2 billion reality check.

Albemarle just idled the final production line at its Kemerton refinery in Western Australia (the state I have called home for almost 30 years now). This was supposed to be the "gold standard" of Western refining. Despite a lithium price rebound, the company realized it is cheaper to mine ore in Australia and ship it to China for processing than to refine it locally.

If a Tier-1 jurisdiction like Australia, with $17B in incentives, world-class power, and a skilled workforce, cannot make the "refining math" work, African nations must ask: Are we setting ourselves up for a "Refining Trap"?

Here are three hard truths for the "Downstream or Bust" agenda:

1.Mining and Refining are NOT the same business

Mining is about geology and volume. Refining is about chemical engineering, low energy costs, and massive scale. You can be a great miner and a terrible refiner. Forcing them together often kills the profitability of both.

2. "Dig and Ship a badge of honor, not a failure

Australia is a mining leader not because it makes batteries, but because it perfected the "METS" (Mining Equipment, Technology, and Services) sector. Australia exports software, safety systems, and drilling tech. This is higher-margin value-add than a chemical plant and does not require billions in subsidized electricity.

Policy should be a Magnet, not a Mandate.

Banning raw exports, like we have seen in Zimbabwe or Namibia, does not automatically create a refinery. Often, it creates "stranded assets" and kills investment. Capital is cowardly. It goes where it is welcome and stays where it is well-treated.

The African Approach should be:

• Infrastructure first: Do not mandate a refinery if the power grid cannot handle a toaster.

• Focus on Beneficiation: Primary crushing and sorting (getting to 6% concentrate) is a win. It reduces shipping costs and creates jobs without the $2B price tag.

• Build the METS ecosystem: Use the mines to build local engineering and logistics firms. That is the Australian Model" that actually works.

If we want downstream to grow in Africa, it must grow because it is competitive, not because it is compulsory.

My reaction

After finishing reading the article, I remembered the speech by State President His Excellency Professor Arthur Peter Mutharika before announcing the national ban on export of raw minerals. Mutharika hailed the potential of the Kangankunde deposit in helping transforming the economy of Malawi currently in deep waters. Before announcing the ban, he emphasized the importance of value addition for Malawi to scale up benefits from mines for critical minerals such as Kangankunde.

When the ban was announced, I was among those people alert on what reaction would come from Lindian. In this newspaper, we had also published an editorial persuading Lindian to consider setting up a processing plant that will produce the high value rare earth minerals in Malawi in order to scale up benefits from Kangankunde. In the editorial, we gave an example of Mkango Resources pursuing the Songwe Hill Rare Earth Minerals, who are planning to construct a processing plant to produce high value minerals from the rare earths within Malawi.

But Lindian posted a statement onAustralian stock exchange soon after the announcement of the ban  that its plans to export rare earth concentrate from Kangankunde would not be impacted because it would conduct some processing within Malawi to concentrate stage,  it claimed was the highest level possible in Malawi due to lack of required facilities.

This was despite cries over the ban from local Artisanal and Small-scale Miners (ASMs) whose activities were impacted by the ban due to lack of access to beneficiation facilities within Malawi. I questioned myself; was Mutharika only targeting ASMs by issuing the Executive Order? But why did he take time talking about Kangankunde before announcing the ban?

Mr Kabunga’s post, therefore, has opened my eyes that Mkulukutamoyo (as Mutharika is fondly called in political circles)  did not execute the ban to just impact the local poor ASMs, rather some investors want to find ways to escape the trap.

As the President stated in his speech before announcing the ban, the success of Kangankunde will certainly contribute significantly to the economy of Malawi understanding that the deposit has over 100 years mining life with Lindian having pegged the initial life span at 45 years.

The economic changes due to the contributions of mines such as Kangankunde will help sustain the political popularity of the President and his ruling Democratic Progressive Party. Mutharika can indeed not dare risk his popularity just to meet Mr Kabunga’s aspirations though factual and coherent.

Certainly, he clearly remembers that Malawians talked a lot about inadequate benefits from the Kayelekera Uranium Mine in Karonga when during his tenure as President his  late brother Bingu sanctioned the opening of the Mine in 2009 by Australia’s Paladin Resources. I do not think he would dare ride in a similar boat though it might look investor friendly.

The best Mr Kabunga and the Kangankunde Project management team can do is to mobilise  investors  to  consider partnering the Malawi Government in developing the refinery to produce the high value rare earths within Malawi. Neither Mutharika nor any Malawian of good  would dare lose Kangankunde for a song.

As the President said when announcing the ban, it is imperative for Malawi to realise maximum benefits from its mineral resources, and local value addition is the way.