Mining Authority pressured to upgrade Kangankunde rare earth mining licence
The Mining and Minerals Regulatory Authority (MMRA) is facing pressure to either upgrade or revoke the Kangankunde rare earth mining licence in Balaka, amid growing concerns over the management of Malawi’s mineral resources.
The Centre for Democracy and Economic Development Initiatives (CDEDI) has written to the Director General of the MMRA, Mphtaso Chikoti, demanding the immediate review of the mining licence issued to Lindian Resources Ltd for the Kangankunde Rare Earth Project.
In a letter also copied to the Minister of Mining and Energy Jean Mathanga, the Chairperson of the Parliamentary Committee on Natural Resources Tiaone Hendry, and the Executive Chairman of Lindian Resources Ltd, CDEDI Executive Director Sylvester Namiwa argues that the current medium-scale licence does not reflect the true economic value of the deposit.
According to Namiwa, Kangankunde in Balaka hosts one of the largest rare earth deposits in the world, and the current arrangement is not in the best interest of Malawians.
It claims the deal may have been influenced by narrow interests within government, an allegation that has not been independently verified.
“Despite Kangankunde in Balaka bosting of one of the largest rare earth deposits in the world, the Malawi Government decided to issue a medium-scale mining license to an Australian based company known as Lindian Resources Ltd.
“CDEDI is of the view that such an agreement was not done in the best interest of Malawians but rather very few selfish political and greedy top government authorities and it must be corrected forthwith,” stated Namiwa.
The organization is urging the mining authority to either upgrade the project to a large-scale mining licence or revoke the agreement altogether, insisting that Malawi must secure maximum benefit from its mineral resources.
Namiwa also references remarks attributed to President Arthur Peter Mutharika, who cautioned against exporting raw minerals without ensuring long-term national benefits, saying the country should prioritize protecting its mineral wealth.
The group has issued a 21-working-day ultimatum to the authority to act, warning of possible public pressure if its demands are not addressed.
“It is against this background that CDEDI is giving you 21 working days to do the needful or else face the wrath of the people that have vowed to protect their mineral wealth,” he added.
It further calls for any revised agreement to include meaningful state equity participation, arguing this would ensure Malawians directly benefit from the project.
The Kangankunde Rare Earth Project continues to attract attention due to rising global demand for rare earth minerals, which are key in electric vehicles, renewable energy systems, and advanced electronics.
The MMRA and the Ministry of Mining and Energy have not yet publicly responded to the demands.
