* The job of the Ministry of Mining in Malawi is not just going around attending mining conferences and indabas in other countries
* But ensuring that our regulatory framework for the mining sector is being enforced with diligence and discipline, which requires great levels of vigilance and meticulous attention
* The job of the Ministry is to ensure that there are functional systems working around the clock to regulate the conduct of every player in the sector and to safeguard every single ounce of our minerals
* As he opens the Malawi Mining Investment Forum 2025 — under the theme; ‘Advancing Malawi’s mining agenda in an evolving global industry’
By Duncan Mlanjira
Stakeholders, who have been voicing their concerns over weak mining development agreements that the Malawi government had been signing with foreign companies, have been vindicated following President Lazarus Chakwera admission that the Ministry of Mining was operating in secret with the foreign investors.
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At the official opening of the Malawi Mining Investment Forum 2025 — under the theme; ‘Advancing Malawi’s mining agenda in an evolving global industry’ — Chakwera said “it is not acceptable” that the citizenry should learn of mining operations hearing about mining operations taking place right here in Malawi “from a press conference by a foreign company in Australia”.
“Or from that company’s report of the performance of its stock on the London Stock Exchange, as if here in Malawi the Ministry of Mining has no information to give Malawians about how Government is securing a prosperous future for them through this resource.
“So I am ordering that the silence from the Ministry regarding the activities in the mining sector needs to end immediately, because our minerals are a matter of national security and there is no better security than putting things in the light.”
“It is important to remember that those who want to steal our minerals are already here, some of them may very well have sneaked into this room, and these thieves do not sleep, and so the only way we can succeed in defeating their evil plans is to have a Mining Authority that is even more awake.
“The job of the Ministry is to ensure that there are functional systems working around the clock to regulate the conduct of every player in the sector and to safeguard every single ounce of our minerals.”
The President also took cognizance that officials of the Mining Ministry are always galavanting around the world attending mining conferences and indabas, saying that is not their primary job “but ensuring that [Malawi’s] regulatory framework for the mining sector is being enforced with diligence and discipline, which requires great levels of vigilance and meticulous attention”.
“It is important to remember that those who want to steal our minerals are already here — some of them may very well have sneaked into this room, and these thieves do not sleep, and so the only way we can succeed in defeating their evil plans is to have a Mining Authority that is even more awake.
“The job of the Ministry is to ensure that there are functional systems working around the clock to regulate the conduct of every player in the sector and to safeguard every single ounce of our minerals.”
Chakwera highlighted to the delegates that included potential investors that Malawi is endowed with many sought-after minerals by the international markets, saying “there is now no doubt about how much wealth the God of heaven hid beneath the soils of Malawi”.
“Whenever you set foot on Malawian soil, you set foot on riches untold and riches unbelievable,” he said. “Beneath these soils is uranium, which the nations of the world need to fuel their nuclear reactors for the generation of electricity.
“Beneath these soils is gold, which the nations of the world need to safeguard their wealth in the event of economic disasters. Beneath these soils is coal, which the nations of the world need to generate steam-powered electricity for domestic use and fuel manufacturing plants for the production of steel and cement.
“Beneath these soils are rare earths, which the nations of the world need more than ever now to create the technologies of our increasingly digital world, including telecommunication technologies, aerospace equipment, electric vehicles, robotics, and medical devices.
“Beneath these soils are gemstones, which the nations of the world need for decorative, ornamental, and sentimental use, for we know that beauty and culture are humanity’s way of experiencing and expressing the meaning of life.
“And last but not least, beneath these soils of Malawi is as much titanium as Wakanda had vibranium, for Malawi is now the envy of the world after the discovery of the largest deposit of rutile to be found anywhere on earth, which the nations of the world need for the making of paints, plastics, textiles, cosmetics, sunscreen, aerospace technologies, medical implants, sports equipment, and for making light transmission crystals.
“So there can be no question about Malawi’s mineral riches. What that means is that in the mining sector alone we have everything we need for the achievement of an upper-middle- income economy as laid out in the MW2063 vision.”
He further told the delegates that having the mineral deposits is only one of three pieces “of the economic transformation puzzle that are needed to turn minerals into inclusive wealth, the first of which is a strong regulatory framework made up of a combination of strong institutions, strong laws, strong policies, and strong testing labs to aid in the effective regulation of the sector”.
“A strong regulatory framework in mining ensures that there is equal opportunity for genuine investors, a fair and level playing field for stakeholders, while leaving no room for illegal mining or environmental degradation.
“This is why for the first time in Malawi’s history, my Administration has put in place a new mining law that establishes the Mining Authority for this purpose.”
Local investor, Standard Bank Malawi
He emphasised that “even if there are minerals deep in the remotest parts of the forests of Malawi, no one should be able to touch them without the Mining Authority or Ministry knowing about it, or be able to do so without a licence, or be able to do so without following the laws of Malawi”.
“And a big part of having this strong regulatory framework is transparency to the public, and it is disturbing to me that with all the mineral riches Malawi has, including the rutile deposits recently discovered in my own village outside this city, Malawians have yet to hear anything from Mining officials about what is going on in Kasiya regarding our rutile and what has been agreed about that rutile and with whom — that is not acceptable.”
Chakwera unveiled that the second piece of the puzzle “is the negotiation of smart mining agreements that work for the developmental goals of Malawi”, adding that this is a piece of the puzzle that many countries in Africa get wrong — partly because of the common mistake of entrusting the negotiation process to people who have no expertise and global experience in the best structure for these mining development agreements (MDAs), and partly because of the equally common mistake of entrusting the negotiation process to officials who can easily be bought to sell away their own country”.
“As a nation, we are determined to void this tragedy, and everyone in the Ministry should know that I am monitoring very closely what is happening with our MDAs and I am getting feedback from world experts in mining agreements to determine whether the MDAs you are offering foreign companies are the best deals Malawi can get or just another set of cheap deals from which Malawians will not benefit as much as they deserve.
“So when the Ministry complies with my order to start giving Malawians updates on what we are doing with their mineral riches, I expect that report to include the status of our mining development agreements for every mine we have in the country.
“And I expect the players who are entering those mining agreements with us to be present at those briefings, because they too must learn to be accountable to the Malawian people as the most important shareholders in their mining operations in Malawi.
“My Administration has worked very hard to safeguard the stake of Malawians in these minerals, and we have even established a public Mining Company through which Malawians will soon be able to buy shares in the various minerals that are present in the country.
“But that’s not enough, because we also intend to create a Sovereign Fund through which the proceeds from mining activities will be secured for all Malawians, for the benefits of mining need to go beyond corporate social responsibility to one village.
“But the bottom line is that those of you in the sector need to stop operating in secret and start telling Malawians what is being done to ensure that their minerals are safe, how they are being leveraged for their benefit, what the royalties are on these minerals and where those royalties are being secured, and how they too can have shares in the Mining Company that we have set up for them to engage in mining activities through legal means.”
On the third piece of the puzzle, which is investment partnerships, Chakwera said the only people his administration is interested in working with “are serious investors who have the resources to invest heavily in the sector; the global market networks to turn those investments into Malawi’s prosperity; and a reputation for credible dealings that don’t involve exploiting countries through price transfers and cleverly masked subsidiary companies whose ultimate beneficiaries are hidden ghosts receiving payments in offshore accounts from the proceeds of Malawi’s minerals while Malawians languish in poverty”.
“We welcome credible investors who want to work with us in the context of long-term partnership, not economic exploiters who are just looking to make a quick buck.
“And I want to plead with Malawians who are working in the mining sector to not fall for the tricks of the exploiters or imitate their tactics — let us promote credible investments that foster the spirit of partnership.”
For one thing in his speech that was positive on the Ministry of Mining — whose Minister if Ken Zikhale Ng’oma — who received presidential congratulations for hosting the second edition of the Mining Forum “as a platform for promoting such partnerships”.
Mining Minister Zikhale Ng’oma
On his part, Zikhale Ng’oma hinted that Malawi is already reaping the benefits of the mining sector, thanks in part to the establishment of the Malawi Mining Authority — which “has helped to bring order to mining activities, ensuring that the sector operates in a more structured and regulated manner”.
He highlighted the Ministry’s efforts to combat fraudulent activities in the mining sector, through collaboration with the Malawi Police and Malawi Defense Force (MDF) — “to prevent illicit activities and promote a more transparent and accountable mining industry”.
Kangankunde rare earths mine in Balaka being developed by Australian company Lindian Resources
Just last week, two unidentified Chinese national geologists were intercepted and handed over to the Police after invading Kangankunde rare earth mine in Balaka District where they were illegally collecting mineral samples.
According to reports, community members around Kangankunde Mine, which has the world’s largest rare earth deposits, this is the third time these Chinese nationals have done this, said community leader, James Makanga, who added that their actions are beginning to raise alarm to them as members of the community.
On his part, Robert Martin, executive chairperson of Lindian Resources, the Australian company which is in a deal with Malawi Government to extract the rare earth deposits, described the incident as a serious breach of the mining site security and a “concerning act of industrial trespass”.
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Lindian reiterated its commitment to safeguarding its operations and pledged to continue working closely with regional and international partners to protect the Kangankunde site and ensure the integrity of its global critical minerals contribution.
“To find foreign nationals on an active, unmapped haul road taking samples is concerning, especially given the current geopolitical landscape surrounding rare earths,” Martin said. “We will continue to work with authorities to ensure the security and sovereignty of the project are upheld to the highest standards,” said Martin.—Additional reporting on Zikhale Ng’oma from the Forum by Patience Longwe, MANA; pictures courtesy of State House and MANA
