Minister of Mining Monica Chang’anamuno has assured dual listed Canadian-based mineral and exploration company, Mkango Resources Limited, of a hastened process towards signing of a Mining Development Agreement (MDA) with the government.
She set December 2023 as a target for concluding discussions with the firm, which is undertaking a Rare Earth mining project at Songwe Hill in Phalombe District.
An MDA is an agreement that governs the legal, financial and technical relationship between the Malawi Government and a mining licence holder.
Speaking on Friday when she visited the Songwe Hill project, Chang’anamuno said, once the MDA is signed, Mkango will start its work towards construction of a mine here.
- Advertisement -
“Right now, the government is in the process of finalising 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,” Chang’anamuno said.
- Advertisement -
She said the project will help in 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.
Chang’anamuno said there were some issues that needed to be cleared before signing of the MDA, hence the delay.
Her visit comes after Mkango Resources Limited concluded 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.
The study findings were approved and signed off by the Malawi Environment Protection Authority in February this year.
- Advertisement -
Mkango Resources Limited President Alexander Lemon said the firm is upbeat that the project will commence soon.
“We are very excited that the MDA is being finalised. We are looking forward to receiving the signed mining development agreement and the mining licence so that we get the project started and contribute to socio-economic development in Malawi as soon as possible,” he said.
