Advertisement
Business

World’s largest Kasiya Rutile Mine to start 2025

Advertisement

The Ministry of Mining has said Malawians should expect real mining activities at the multimillion dollar rutile mine at Kasiya in Lilongwe to commence during the 2025-26 financial year.

In April this year, Australian-listed company, Sovereign Metals and Mining, announced that an updated mineral resource estimate had revealed the world’s largest rutile deposit at 1.8 billion tonnes.

The estimate also revealed second largest graphite deposit.

Advertisement

In a written response to Times Business questionnaire, Principal Secretary for Mining Joseph Mkandawire said Capital Hill expects the mining firm to start construction at the mine in 2024, all things being equal.

Mkandawire said the ministry is closely monitoring the company’s mineral exploration operations, ensuring full compliance with its Action Plan as well as mining laws and continue providing the much-needed support to the project to ensure the mine gets off the ground.

Mkandawire rubbished claims that Malawi will only be getting a fraction of the earnings from the mine with the miner getting everything.

Advertisement

“You may wish to know that these mining companies join the sector with full understanding that there will be equitable benefit sharing between government (on behalf of the people of Malawi) and the company. In Malawi’s mineral sector, this benefit sharing is guided by several existing laws that ensure mutual benefits from such projects.

“Some of the tools used to capture revenue in Malawi’s existing legislation from such projects are well structured in the fiscal regime as stipulated under section 260 of the Mines and Minerals Act (Act No.8 of 2019 on collection of royalties in line with both the Sixteenth and the Seventeenth Schedules of the Taxation (Amendment) Act (2016) and other relevant laws of Malawi responsible for administration of tax, environmental management and labour, among others, as a host country to ensure maximization of benefits in all spheres of the sector,” Mkandawire said.

He noted that the Government of Malawi, therefore, uses the existing fiscal regime tools to maximise revenues from mining projects as stipulated under the Mines and Minerals Act (Act No.8 of 2019) as well as the Taxation Act.

According to Mkandawire the government collects a number of fees and taxes from mining projects including Mineral Licence Processing Fees and Annual ground rent; Mineral Royalty which is paid to the government monthly; corporate income tax; Value Added Tax; withholding tax Payer As You Earn; Tevet Levy and Resource Rent Tax.

He added that the mineral revenues and mining contract information for any mining project will always be made accessible to the stakeholders in order to bring transparency, accountability and mitigation of mistrust from the citizens of this country.

Sovereign’s Managing Director Julian Stephens recently said it was a remarkable achievement by the firm’s team to have made the largest natural rutile discovery ever in just two years since initial identification.

“The company is targeting a large-scale, low carbon-footprint and environmentally sustainable natural rutile and graphite operation which will also positively impact the environmental footprint of titanium pigment and other industries, and provide a significant contribution to the economy of Malawi,” Stephens said.

The Ministry of Mining granted an Exploration Licence to Sovereign Metals and Mining, to explore for graphite in Kasiya in 2017. While exploring for graphite, the company discovered a huge mineral anomaly of rutile, which the company has been following up until to date.

Facebook Notice for EU! You need to login to view and post FB Comments!
Advertisement
Tags
Show More
Advertisement

Related Articles

Back to top button
Close

Adblock Detected

Please consider supporting us by disabling your ad blocker