Mining firm, Mkango Resources has projected to start its Songwe Hill Rare Earth Mine construction next year, with a total estimated investment of $400 million.
Songwe Hill has an expected mine life of 18 years, producing a 55 percent mixed rare earth carbonate, yielding 1 953 tonnes per annum.
Addressing a Parliamentary delegation which visited the mine recently, Mkango Resources officials said financing is being secured from a combination of financial institutions, development partners, and capital markets.
Mkango Resources Country Director Burton Kachinjika confirmed the mine is currently advancing through the Front- End Engineering and Design (FEED) phase — a detailed engineering process designed to de-risk mine construction.
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“The FEED is expected to be completed within nine months, after which construction of the mine facilities, beneficiation plant, and hydrometallurgical chemical plant is anticipated to begin,” he said.
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He said the project will require 25 megawatts of uninterrupted power supply, together with the construction of a 95-kilometre high-voltage power line from Blantyre to the Songwe site in Phalombe.
According to Kachinjika, there would also be a need for a paved road from Migowi to the mine site that will be essential to support construction and operational logistics.
Acting Principal Secretary for the Department of Mines Andrew Chisamba affirmed the government’s support in the process.
Committee Chairperson Tiaone Hendry described the Mkango Songwe Hill Rare Earths Mine as one of Malawi’s flagship projects in the mining sector.
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She said given the significant exploration milestones already achieved, the time had come to advance the project into the Front- End Engineering and Design (FEED) and construction phases, with rare earth carbonate production to follow in the near future.
“Commencement of production is paramount. The project’s potential to deliver transformative economic benefits to Malawi through employment creation, foreign exchange earnings, royalties, tax revenues, and community development,” she said.
Rare earth elements are indispensable to modern technology, with applications spanning advanced electronics, renewable energy systems, electric vehicles, and aerospace.
The Mkango Songwe Hill project is positioned to play a significant role in meeting this demand.
