Mining
New Mining Law to address Kangankunde anomalies
August 11, 2026 / Admin
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.
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Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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