By Kingsley Jassi:
The United States (US) government through its Development Finance Corporation (DFC) has stepped up interest in Malawi’s critical minerals, offering to push through key projects.
Malawi has abundant reserves in rare earths, rutile, graphite and several key metals needed in high tech and clean energy industries.
However, with China supplying over 80 percent of global rare earths requirements, it puts the US in a vulnerable state as a major importer without alternative reliable source countries.
Such interest saw the visit by DFC Director of Energy and Natural Resources, Tom Haslett, whose institution is supporting development of Mkango Resources’ Songwe Hill Rare Earth projects.
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Responding to an emailed questionnaire, Haslett said DFC’s investments help to deliver independent sources of key materials to the US and allied markets, reducing dependence on suppliers.
He further explained that DFC’s project development funds to Mkango supports final engineering design required to begin construction on the mine, which will advance the project for potential DFC financing.
“The Songwe Hills Rare Earths mine is a landmark project that will help advance rare earths supply chains that are decoupled from strategic adversaries.
“DFC PD funding helps projects move from an early concept into consideration as an investment-ready transaction,” he explained, responding to a questionnaire,” he said.
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However, as the country grapples with electricity shortage, affecting high power-demanding industrial projects, there are limitations to mining projects that can be connected to the national grid.
Haslett said DFC offers opportunities to support power projects that the country can put forward to increase power generation.
“Reliable energy will help create a foundation for success in Malawi’s mining sector. DFC is open to proposals to support power generation projects at the grid-level or to serve mining operations and local communities directly,” he said.
DFC’s investment provides countries like Malawi with alternative option for high-quality investment, driven by strong private sector partners, that can deliver foreign exchange, jobs, and resources that help drive positive development impacts, according to Haslett
The US government is promoting investment and trade in its bilateral relations with its partners including developing countries that have for a long time depended on the US for support.
US Embassy Chargé d’Affaires Melania Arreaga last rated mining among strategic sectors for the US.
