Mkango’s new listing lifts investment image
The Department of Geological Survey and the Malawi High Commission in United Kingdom have applauded Mkango Resources for raising £1 million to list on the AIM London Stock Exchange describing the move as a huge boost to Malawi’s investment image.
Mkango Resources started trading on the London Stock Exchange last month and Malawi’s High Commissioner to the UK, Ken Mphonda, said the mission is delighted to recognise Mkango Resources Ltd achievement.
He said the development is an important milestone, not only to the country’s mineral sector, but the entire private sector.
“This provides ringing endorsement of the competitiveness, security and quality of Malawi’s business climate for investment. It puts private sector confidence in leadership and the economy.
“London being the financial hub, the mere listing provides huge opportunity in marketing Malawi to fund managers globally,” said Mphonda.
He further said opportunities in the mineral sector in Malawi are huge.
“Traditional mineral producers have reached a sun set and it is becoming very costly to mine. Malawi is still virgin in this area with huge potential for mining profitably. Although, recent reports suggest that mineral prices are reaching bottom, it is envisaged that between now and 2020, prices of minerals such as uranium could rebound.
“Prices for minerals like niobium, rare earth will likely rise helping the Malawi economy
to grow, creating jobs wealth, generating the necessary foreign exchange. As you are already aware, the government has identified the mining sector as one of the sectors for growth. Malawians and foreigners can join in investing in companies such as Mkango Resources to direct benefit from the mining ventures,” he said.
Department of Geological Survey Director Jalf Salima said being the only focused rare earths company listed on the London Stock Exchange and the only AIM listed company focused on just Malawi, Mkango has become the Malawian flag carrier for the mineral sector.
He said the development has increased the profile of the company and hence its capacity to raise financial capital to invest in the advanced stages of its exploration activities in Malawi.
“The trading means more capital to build the Songwe Hill rare earth project. This means more economic activities and corporate social responsibility programmes for the people at Songwe. As you may be aware, Mkango has a good track record in working with and assisting the communities in Phalombe.
“This will also improve the profile of Malawi as a viable investment destination especially in mining. Thus the company has demonstrated its confidence in the mining sector in Malawi and determination to carry on with the project,” said Salima.
Mkango Resources is licensed to explore Rare Earths at Songwe Hill and Thambani in Mwanza. The main exploration target in the Phalombe licence is the Songwe Hill rare earth deposit, which features carbonatite hosted rare earth mineralisation.