The Chamber of Mines and Energy says Malawi can generate up to $10 billion (about K17 trillion) in mineral exports in 10 years.
The various mining projects, which are being pursued by the Chamber of Mines and Energy, include Lindian Resources Limited’s Kangankunde Rare Earth Project in Balaka, Mkango Resources’ Songwe Rare Earth Project in Phalombe, Lotus Resources (Africa) Limited’s Kayelekera Uranium Mine in Karonga and Globe Metals and Mining Limited’s Kanyika Niobium and Sovereign Metals Limited rutile project in Lilongwe.
The chamber’s national coordinator Grain Malunga said in an interview on Tuesday that the projects have the potential to generate an estimated capital investment of $5.2 billion during the period.
With an initial capital expenditure of $1.01 million, the firms are expected to make $694 million Ebitda (earnings before interest, taxes, depreciation and amortisation) per year.
Said Malunga: “Data obtained from the chamber members show that the mining sector has the ability to generate about $1 billion (about K1.7 trillion) when other phases of expansion are included.
“The Malawi Chamber of Mines and Energy has taken leadership to develop Malawi’s critical minerals by 2027. This will not only create wealth, but also generate employment, skills transfer and create market for goods and services.”
He said companies under the chamber have made good progress in exploring for critical minerals such as uranium, niobium, rare earths, rutile and graphite.
Lotus Resources and Lindian Resources are expected to start production in the last quarter of 2025 while Globe Metals, Mkango Resources and Sovereign Metals are expected to begin production by 2027.
Globe Metals and Mining concluded a mining development agreement (MDA) with government in March 2023 while Lotus (Africa) Limited and Mkango Resources signed MDAs over Kayelekera Mine and Songwe rare earths deposit, respectively, in July 2024.
Mining, which is part of the ATM strategy standing for agriculture, tourism and mining, is touted to grow the economy in the short to medium-term for the country to achieve the lower middle income status by 2030.
Currently, the sector contributes about one percent to the GDP, the broadest measure of economic growth.
Ministry of Mining acting director of mines and minerals Mphatso Chikoti said shortly, a Malawi Mining Company will be established to undertake among others, in-depth exploration, joint ventures, act as State equity partner and mineral beneficiation under the Malawi Development Corporation Holdings Limited. Meanwhile, through the Mines and Minerals Act 2023, which replaced the Mines and Minerals Act of 2019, government ownership interest under the Act has removed a ceiling of 10 percent to give it the right to reduce or increase the percentage as the minister responsible deems fit.
