MMRA defends Kangankunde licence decision, signals possible review after Lindian takeover

The Malawi Mining Regulatory Authority (MMRA) has defended its decision to issue a medium-scale mining licence for the Kangankunde Rare Earth Project, saying the classification was based strictly on legal thresholds and the technical details submitted by the original applicant, Rift Valley Resources Development Limited.

In a written response to the Centre for Democracy and Economic Development Initiatives (CDEDI), MMRA clarified that licensing under the Mining Act is not based on preference or government discretion, but on measurable criteria such as production capacity, investment levels, and workforce size.

The Authority said the project did not meet the legal requirements for a large-scale mining licence at the time of approval.

Under the Mining Act, a large-scale licence applies only when specific thresholds are exceeded, including high production volumes, major capital investment, and large workforce requirements.

“The current Medium-Scale Mining Licence was Issued on the basis of an application submitted by Rift Valley Resources Development Limited.

That application, supported by the technical data and Pre-feasibility Study required under Section 156 of the Act, did not meet the statutory thresholds that would trigger the requirement for a Large-Scale Mining Licence.

“Accordingly, the then Mineral Resources Committee had no legal basis to impose a higher-category licence than what was appiled for and technically Justified at the time,” reads the response letter.

MMRA also emphasized that there is currently no mineral production at Kangankunde, noting that ongoing works are part of mine development activities only.

However, the Authority acknowledged a key development, the project is now fully owned by Lindian Resources Limited, which may change the scale and scope of operations.

Because of this, MMRA says it will request updated operational plans, a revised feasibility study, and other technical documents to reassess whether the project now qualifies for reclassification as a large-scale mining operation.

“The Authority will not hesitate to require the holding of a Large-Scale Mining Licence if the technical data submitted by Lindian demonstrates that the thresholds in Section 144 are met,” MMRA stated.

The Authority further rejected allegations of secret arrangements in the licensing process, insisting all decisions are guided by the law and technical evaluation.

Reacting to the response, CDEDI Executive Director Sylvester Namiwa said the situation exposes weaknesses in the mining law, arguing it gives investors too much control over what information is submitted to authorities.

“It is clear that the 2023 Minerals and Mining Act is falling short of serving Malawians interests. It has gaps that gives a leeway to the so called investors to decide what to what not to present to authorities,” said Namiwa. “We need to wake up as a country and protect our mineral wealth.”

He called for urgent reforms to ensure greater Malawian ownership in mining projects, stronger disclosure requirements on production and pricing, and clearer guarantees on community benefits before operations begin.

Namiwa also questioned the long development history of Kangankunde, which dates back to 1987, asking why the project has remained in exploration for decades.