ISSUE NO. 118 www.miningtradenews.net | DECEMBER 2022 | Price MK2000 | ||
KA | NGA NKUNDE RARE | |||
Main | ||||
EARTHS | Advertisers | |||
PROJECT SOARS | ||||
ShayonaCement | ||||
Lindian'sminedevelopmentdrillingprogrammeintercepting | ||||
richmonazitemineralisation | ||||
Malawi Mining Minister visits project site to appreciate progress | Government advances | |||
initiative to formalize ASMs | ||||
Page 3 |
Sovereignseals Kasiyarutile | |||
offtakedeal with global mar- | |||
ket leader | |||
Page 5 | |||
Drilling work at Kangankunde Hill | The Minister assured the community of ample benefits from the | ||
project, which include employment and business opportunities for | |||
SX-listed Lindian Resources says there is outstanding progress | members of the local community and corporate social responsibility | ||
projects. | |||
in the mine development drilling programme for its Kan- | The project is also expected to substantially benefit the country | ||
gankunde Rare Earth Elements (REE) Project in Balaka with | when it gets to production stage through payment of royalties and | ||
drill samples containing extensive visible rare earth bearing mon- | taxes to the Government. | ||
Aall | |||
azite from surface to current hole depths. | Lindian Resources is expected to spend over US$200-million to set | The role of state- owned | |
Lindian CEO Mr Alistair Stephens explains that the company has | |||
fast-track the mine development early works. | REEs, which are expected to be mined at Kangankunde, have a | ||
deployed two Reverse Circulation rigs and one Core rig on the site to | up the mine over a period of five years. | enterprises in developing | |
Meanwhile, Malawi's Minister of Mining Honourable Dr Albert | growing use in the production of strong magnets for manufacturing of | ||
Mbawala has visited the project site to appreciate progress. | electric and hybrid vehicles, wind turbines for energy generation, | economies | |
Honourable Mbawala and Lindian officials led by Mr Stephens also | smart phones, robotics and medical applications. | Page 9 | |
held an interface meeting with members of the local community to | (Read the detailed article on the progress of the Kangankunde | ||
brief them on the project. | rare earths mine development on Pages 6 and 7) | ||
2 | ADVERTISING | DECEMBER 2022 | |
Governmentadvances initiative to formalize ASMs | |||||||||
DECEMBER 2022 | NEWS & ANALYSIS | 3 | |||||||
MINING | In Malawi, the number of ASM operators is estimated to | ||||||||
By Tawonga MAYUNI | |||||||||
range between 22-thousand and 40-thousand but the sector | |||||||||
he Ministry of Mining says it has managed to facil- | |||||||||
is domi nated by inf ormal op erators engag ed in the ex - | |||||||||
itate the formationof cooperatives for Artisanal and | ploitation of gems tones, gold , coal, gypsum, lime stones, | ||||||||
Small-scale Miners (ASMs) in all the three regions | construction stones and sand. | ||||||||
However, besides EDF buying gold strains from the min- | |||||||||
Tof the country, which is a step ahead in the process of for- | ers, financial institutions are reluctant to support the ASMs | ||||||||
malizing ASMs in the country. | with loans as they consider the business as risky. | ||||||||
The development comes in light of complaints by ASMs | |||||||||
of lack of government support to develop their business. | It is, therefore, estimated that less than 1% of Malawian | ||||||||
Spokesperson for th e Minist ry of Mining Andrew | ASMs have access to bank loans. | ||||||||
Mkonda told Mining & Trade Review that government con- | The government is, therefore, facilitating the formation of | ||||||||
tinues to work through the Ministry of Industry and Trade | cooperatives to, among other things, ensure that the opera- | ||||||||
and the Ministry of Mining to register, license and train the | tors are self-financing through shares and collective busi - | ||||||||
miners in the cooperatives. | ness operations as well as acting a s society security for | ||||||||
Mkonda said the Ministry of Mining an d Technical En- | obtaining loans from financing institutions. | ||||||||
trepreneurial and Vocational TrainingAuthority (TEVETA) | Cooperatives, unlike individual ASM operators, have bet- | ||||||||
are working to develop a formal training curriculum tailor- | ter opportunities to obtain grants and donations from gov- | ||||||||
made for ASMs to be trained formally in small scale min- | ernment and other organisa tions as well | a s l oans f rom | |||||||
ing. | financial institutions. | ||||||||
Mzimba b ased miner and ASM a ctivist Chikomeni | Mkonda: We are developing curriculum for ASMs | The Ministry of Trade and Industry, t herefore, provides | |||||||
Manda commented in a separate interview that production | GEMMAP Thomas Fulgraf says that the ASM sector has a | training to ASM cooperatives in Financial Management and | |||||||
of the formal training curriculum tailor made for ASMs is | Costing to ensure that the cooperatives effectively manage | ||||||||
very important because it will narrow the skills gap. | significant potential to contribute towards rapid economic | their financial resources and are able to cost their business | |||||||
"This will help miners to do things in an appropriateway | growth and development of Malawi through rural job cre- | operations to ensure that their cooperatives make business | |||||||
hence their trade will be profitable for them," he said. | ation and provision of alternative economic activities. | sense. | |||||||
The Reserve Bank of Malawi through its subsidiary Ex- | He, however, observes that there are sever al challenges | ||||||||
port Development Fu nd (EDF) is currently buyi ng gol d | that exist in th e sec tor that | ||||||||
from ASMs with plans in the offi ng to al so start buying | need to be addressed includ- | ||||||||
gemstones from the miners in order to curb smuggling of | ing limited access to modern | ||||||||
the minerals, which has been rampant. | technologies, capital for in - | ||||||||
The registered ASM coo peratives that the Ministry of | vestment in mini ng, mineral | ||||||||
mining is working with include : Thandizo Mining Club; | value ad dition and estab - | ||||||||
Tithokoze Lime Makers; Famililjsa Women Mining; Bilira | lished markets. | ||||||||
Mining Cooperative; Kamphanda Mining Cooperati ve; | "The ASM operators have | ||||||||
Matongwe Mining Cooperative; Chitanthamapiri Producers | inadequate marketing skills, | ||||||||
and Marketing Cooperative; Chisimbwiti Cooperative, Tag- | their min ing ope rations a re | ||||||||
wirizana Mining Cooperative Society Limited; Nchalo Salt | informal, they are unable to | ||||||||
Mining Cooperative Society Limited; Nyasa Mining Co- | understand geological infor- | ||||||||
operative Society; Mb indo Mining Cooperative Society; | mation and usually disregard | ||||||||
and Lilikoko Mining Cooperative Society. | basic mining occupational | ||||||||
In his write up published in the ASM ha ndbook which | health, s afety and e nviron- | ||||||||
was produced as part of the Geological Mapping and Min- | mental c onsideration," he | ||||||||
eral Assessment Project (GEMMAP), Project Manager for | says. |
Informal ASMs mining operations
4 | ADVERTISING | DECEMBER 2022 | |
Kangankunde is | Sovereign seals Kasiyarutile offtake | |||||||||||
DECEMBER 2022 | NEWS & ANALYSIS | 5 | ||||||||||
MINING | ||||||||||||
an opportunity | deal | with global | market leader | |||||||||
A | ||||||||||||
Malawi needs to | ||||||||||||
tered into a no n-binding M emorandum of Under - | ||||||||||||
utilise | SX-listed resources group Sovereign Metals has en- | |||||||||||
tonnes o f na tural rutile pe r annum from the Company's | ||||||||||||
standing (MOU) wit h leading rutile market player | ||||||||||||
s reported in our lead article, there is exciting | Chemours Company for the potentia l supply of 20,000 | |||||||||||
Kasiya Rutile Project. | ||||||||||||
news coming from the K angankunde Rare | Chemours is a leading provider of per formance chemi- | |||||||||||
Earth Proje ct in Balaka where ASX-listed | cals that are key inputs in end-products and processes across | |||||||||||
Lindian Resources is conducting a mine development | a variety of industries and operates 29 manufacturing sites | |||||||||||
A | ||||||||||||
drilling programme. | serving approximately 3,200 customers in app roximately | |||||||||||
Kangankunde is showing overwhelming potential for | 120 countries. | |||||||||||
rare earth mining as a ll drill interce pts at the site | Sovereign's Man aging D irector Julia n S tephens com - | |||||||||||
contain extensive visible rare-earths-bearing mon - | ments: "To have signed an MOU for the supply of natural | |||||||||||
azite from surface to current hole depths. | rutile to Chemours, a global leader in the titanium dioxide | |||||||||||
Lindian, which has taken over the project from a | pigment indu stry, is a | true testament to the qua lity an d | ||||||||||
local company Rift Valley Resource Developments in | strategic n ature of our | wor ld-class Kasi ya P roject in | ||||||||||
a purchase deal, has shown seriousnes to develop the | Malawi." | |||||||||||
project by deploying | two Rev erse Circulation rigs | "We are excited to be working with Chemours as a future | ||||||||||
Air-core rig drilling its first hole at Kasiya | ||||||||||||
off-take partner for our premium, low carbon-footprint ru- | ||||||||||||
and one Core rig on site to conduct the drilling pro- | tile products." | world's largest producers of high-quality titanium dioxide | ||||||||||
gramme. | The MOU covers the potenti al supply of 20,000 tonnes | (TiO2) pigment and aspiresto be the most sustainable TiO2 | ||||||||||
In these days when countries across the globe are | per annum of natural ruti le at Stage 1 na meplate capacity | enterprise in the world. | ||||||||||
competing to attract Foreign Direct Investment, we | and a n option to ta ke additiona l product w hen Kasiy a | Using its p roprietary chloride technology pioneered in | ||||||||||
view this investment by Lindian as an opportunit y | reaches Stage 2 nameplate capacity. | 1931 and improving ever since, Chemours provides inno - | ||||||||||
that Malawi has to be proud of. | Stephens explains that the volumes of rutile may be var- | vative TiO solutions for coatings, plastics, and laminates. | ||||||||||
As reported in the article, Minister of Mining Al- | ied up or down by mutual agreement and pricing will ref- | 2 | ||||||||||
bert Mbawala visited the project site which bears tes- | erence market prices of t he day both to be inc luded in the | The company operates four TiO2 pigment production fa- | ||||||||||
timony that the Malawi Governmen t is sup porting | definitive agreement. | cilities: two in the United States, one in Mexico, and one in | ||||||||||
the investment. | He says: "The MOU is non-e xclusive and non-binding | Taiwan totaling TiO2 pigment nameplate capacity of 1.25 | ||||||||||
We urge all stakeholders including traditional lead- | and remains subject to negotiation and execution of the de- | million tonnes per year. | ||||||||||
ers, civil society an d media to also support th e in- | finitive agreement." | In the year e nded 31 December 202 1, Chemours' Tita- | ||||||||||
vestment in ord er for Malawi to sta rt enjoying full | "The MOU will expire two years from the execution date | nium Technologies segment reported net sales of US$3 .4 | ||||||||||
benefits of a mine at Kangankunde. | but can be extended by agreement by both parties should a | Billion. | ||||||||||
As Senior Chief Chanthunya is quoted in the arti- | definitive agreement not have been reached by that time." | Kasiya is the world's largest rutile deposit and one of the | ||||||||||
cle, the people of Balaka stand to ben efit from the | Chemours's Titanium Technologies segment is one of the | world's largest flake graphite deposits. | ||||||||||
Kangankunde Mine | through corporate social r e- | |||||||||||
sponsibility projects plus employment a nd business | ||||||||||||
opportunities that the project brings which will help | ||||||||||||
in poverty allevia tion and socio-economic dev elop- | ||||||||||||
ment in his area. | ||||||||||||
A visit to the project site by members of Mining & | ||||||||||||
Trade Review team has established that what the tra- | ||||||||||||
ditional leader says in the article is indee d the truth | ||||||||||||
as Lindian has already rec ruited some members of | ||||||||||||
the local community as unskilled labour for the proj- | ||||||||||||
ect development and has also engaged internees from | ||||||||||||
Malawi's Universities. | ||||||||||||
This indeed signifies the beginning of a new life for | ||||||||||||
members of the local Kangankunde commu nity as | ||||||||||||
Chanthunya says in the article. | ||||||||||||
The opening of Kanga nkunde Mine w ill also sig- | ||||||||||||
nify the beginning of a new life for the Malawi econ- | ||||||||||||
omy as this m ine has the potential to si gnificantly | ||||||||||||
contribute to the country's economy as the demand | ||||||||||||
for rare earth elements used to manufacture strong | ||||||||||||
magnets for production of electric vehicles and wind | ||||||||||||
turbines keeps surging on the market. | ||||||||||||
The development of a mine at Kang ankunde will | ||||||||||||
also work as an incentive that will attract otherglobal | ||||||||||||
investors to invest in mining in Malawi asit will por- | ||||||||||||
tray the country as mining friendly. | ||||||||||||
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Lindian Resources Limited published this content on 06 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 December 2022 09:11:01 UTC.