Tembo was responding to findings by the Parliamentary Committee on Natural Resources, Energy and Climate Change, which had flagged concerns over blasting activity, stockpiled ore and the export of mineral samples from the site. The committee's scrutiny reflects growing parliamentary interest in ensuring that Malawi's nascent rare earths sector, seen as a potential source of export revenue and foreign investment, operates within a robust regulatory framework from the outset.
Government Reassures Parliament on Compliance
The minister told the House that materials exported from the site had been approved for testing, laboratory analysis and other technical purposes, in line with existing regulatory requirements governing the sector. He said government would continue to monitor the project through regular inspections involving the Ministry of Mining, the Malawi Mining Regulatory Authority and other relevant agencies, to ensure ongoing compliance with the country's mining laws.
Tembo explained that rare earth exploration requires large quantities of samples because the valuable minerals are usually found in very small concentrations within large volumes of rock. A truckload of mined material may contain only a small percentage of actual rare earth elements, making it necessary to use large samples during exploration and laboratory assessment.
The minister noted that all actions followed Malawi's legislative framework for mining exploration and development, and that project monitoring will remain a top priority, with periodic inspections by the Ministry of Mining, the Malawi Mining Regulatory Authority, and other government agencies to ensure continuous compliance with national mining laws and license requirements.
Committee Had Raised Serious Concerns
The parliamentary committee had raised several concerns about the project, including that the mine is currently operating under a medium-scale mining licence issued in April 2022, despite the scale of its operations suggesting it should qualify for a large-scale licence. The committee also found that the mining company had been exporting ore samples for testing without the required approval from the Ministry of Mining.
The committee's report noted that blasting activities at the site had raised concerns among local communities, and that there were questions about the management of stockpiled ore. The committee called for a thorough investigation into the project's compliance with Malawi's mining laws and regulations.
The Kangankunde Project
The Kangankunde project, owned by Australian company Lindian Resources, is being developed to extract rare earth elements including dysprosium and terbium—minerals used in the permanent magnets that power electric vehicle motors and wind turbines, and for which demand has surged as governments worldwide accelerate efforts to decarbonise transport and electricity generation.
The project is considered one of the most significant rare earths deposits outside China, which currently dominates global production of these critical minerals. The development of the project has attracted international attention, with governments and companies seeking to diversify supply chains for these strategic minerals.
A Test of Malawi's Regulatory Framework
The parliamentary scrutiny and subsequent government clarification represent a test of Malawi's ability to manage its mineral resources in a transparent and accountable manner. The country has sought to attract investment in its mining sector as part of efforts to diversify its economy away from tobacco, which has traditionally been the main export.
The government has emphasised that it is committed to ensuring that mining operations comply with all applicable laws and regulations and that the benefits of resource extraction are shared with local communities. The Kangankunde project is seen as a test case for the government's ability to manage large-scale mining projects in a way that benefits the country while protecting the rights of affected communities.
With reporting from Nyasa Times, The Nation, Malawi News Agency and Mining Review Africa.
