Mining
“Community Development Agreements must be extended to medium scale miners”
September 12, 2026 / Wahard Betha
Stakeholders in the extractives industry have asked the Malawi government to extend the threshold of mining companies mandated to sign Community Development Agreements (CDA) to medium scale miners to ensure substantial benefits for communities in mining areas.
In the Mines and Minerals Act 2023, only those companies classified as large-scale miners are mandated to sign CDAs through which privileged local communities demand projects
But in an interview with Mining and Trade Review, the stakeholders explained that this is important because the country has no large-scale mines which are entitled to CDAs, a part from Kayelekera Uranium mine in Karonga
They expressed concern that some companies are operating at a large scale but they are deliberately not upgrading to large scale to shun CDAs.
For instance, ASX-listed Lindian Resources has come on the spotlight for operating the Kangankunde Rare Earth Resource in Balaka using a medium scale mining licence despite Kangankunde being a globally significant multigenerational deposit.
Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera supported the idea saying medium scale mines are huge enough to support the communities.
“Many mining companies in Malawi are in the medium scale category, and having a CDA will guarantee their social capital and contribution to benefit sharing.” Chabwera said.
Mining Sector Consultant Ignatius Kamwanje called on the government to uphold a strong regulatory framework to monitor mines in the country.
Kamwanje said: “The Mines and Minerals Act as provided for is a precursor to conditions on whether a mine is deemed medium or large
“Government must make sure that there is no loophole in the clauses stipulated in the Act for mining companies to take advantage.”
“This calls for a strong regulatory framework. The government must set up auditing and monitoring of mine operations as mechanisms to check such noncompliance.”
“The CDA has so many impacts to the communities as it brings sense of belonging and ownership of mines by having legal stranding and negotiated power. It guarantees funds that are set aside as revenue for infrastructure development. It also reduces local conflicts through dialogue that is structured and ensures transparent grievance mechanisms.”
Director for the Department of Mines Burnet Msika told Mining & Trade Review that the application of CDA to medium scale is one of the major issues in the impending review of the Act.
“The issues being raised here are pertinent and beckon consideration in the on-going Act review process.”
“As a matter of fact, these are some of the issues that are on the billing for further stakeholder consultation.”
A CDA is a formal, legally binding contract between a project developer often in mining, oil, gas or large infrastructure and a local host community.
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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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