Mkango Resources Limited, a listed UK and Canadian stock exchange company who are the developers of the Rare Earth mining project at Songwe Hill in Phalombe district have been assured of getting the Mining Development Agreement (MDA) signed by the end of December this year.
A Mining Development Agreement is an agreement that governs the legal, financial and technical relationship between the Malawi government and a mining license holder.
Minister of Mining Monica Chang’anamuno revealed this when she visited the Songwe Hill project on Friday.
The visit comes after Mkango concluded all exploration works and completed and published a final definitive feasibility study on the Songwe Hill rare earth deposit as well as completing a full Environmental, Social and Health impact assessment (ESHIA) which was approved and signed off by the Malawi Environment Protection Authority (MEPA) in February of this year.
Chang’anamuno said she was very impressed with all of the work that has been carried out at the project site.
“Right now, the government is in the process of finalising negotiating an MDA with Mkango, so that the company can raise funds from banks and investors for the project. There are a few things that are remaining but before the end of this year, the MDA will be signed. Once the MDA is signed, Mkango will start its work towards construction of a mine here,” she said.
She further described the project as excellent and that it will help Malawi in many areas including job and wealth creation as it will have a mine life span of 18 years with a possibility of extension to 50 or 100 years.
“This project is going to help the Nation of Malawi and I am positive that Migowi and Phalombe are going to change economically. Migowi will become a mining city where many economic activities will take place coupled with the construction of the Mine and its processing and chemical plants which will create jobs for our people,” said Chang’anamuno.
On why the MDA signing for Mkango has taken so long, Chang’anamuno explained that there were some issues that needed to be cleared, as the government wanted to make sure that they did not make any mistakes.
“Mining in Malawi is still in its infancy when compared to our neighboring countries, so we do not want to make the same mistakes that other countries made in the past, hence we have been learning the best practices on how our counterparts have benefited from the industry,” she said
In reaction to the Minister of Mines, Mkango President, Alexander Lemon said, “our company is extremely excited that after so many years of investment, the project is finally set to get off the ground and begin contributing to the country’s socio-economic development”
Lemon described the Songwe project “as a real game changer for Malawi.”
“It is a great honour for us to have had the Minister visit us today and see all of the hard work that has been completed successfully over the years. We are very excited that the MDA is being finalized.
“As Mkango, we are very grateful for the very professional support and advice that we receive from the Minister of Mining and her team at the Ministry of Mining and all the other ministries of the Government of Malawi. We are very much looking forward to receiving the signed mining development agreement and the mining license so that we get the project started and contribute to real Socio-Economic development in Malawi as soon as possible,” he said.
