Mining experts have hailed government for increasing the allocation to the energy sector from 40 Billion Kwacha to 57.8 Billion kwacha in the national budget.

In his budget presentation, Minister of Finance, Felix Mlusu, said that the funds will cater for wages and salaries and operations in departments of Energy, Natural Resources, Tourism, Environment, and Forestry.

In reaction, Grain Malunga, National Coordinator for Chambers of Mines while commending government said there is a need to have clear cut policies meant to uplift the extractive industry.

Mining in Dowa has been suspended following increased illegal activities that were taking place in the district.

Reports indicate that the Ministry of Natural Resources Energy and Mining awarded licenses to some foreign nationals who were mining precious stones in the district.

The issue came to light after Member of Parliament for Dowa East Richard Chimwendo-Banda revealed that mining activities were happening in Traditional Authority Chiwere on a large scale.

Mkango Resources Limited and Lancaster Exploration have discovered 17 rare earth minerals in Phalombe district, minister of Natural Resource Mines and Energy impressed with the development.

The minerals found on Songwe hill are reportedly in millions of tonnes which would take the country over 20 years of mining.

President of the two companies Alexander Lemon said that four of the minerals are currently on high demand on the world market.

In 1958, a ruby and sapphire deposit was discovered about 145 kilometers south of Malawi’s capital of Lilongwe on Chimwadzulu Hill. Although this is one of the oldest known gemstone deposits on the African continent, very little has been published about its production in recent years. In late September, a Gemological Institute of America (GIA) field gemologist, Vincent Pardieu, videographer Didier Gruel and expedition guest Stanislas Detroyat journeyed to Malawi to collect samples for GIA research activities, and to document and share their findings from the deposit.

During the expedition, the team learned that rubies from the Chimwadzulu deposit are associated with amphibole, mica and feldspar. “We discovered that this deposit shares a very similar metasomatic type geological environment with the Montepuez ruby deposit located in nearby in Mozambique, as well as Winza, Tanzania and Didy, Madagascar,” said Pardieu. While the Chimwadzulu deposit is known for its rubies and orange sapphires, it produces mostly pale green, blue and yellow sapphires.

In 2008, Nyala Mines Ltd. began to work the deposit, while Colombia Gem House Inc. took charge of cutting, marketing and selling of the stones. In 2013, Malawian national Abdul Mahomed acquired of 80 percent of the mining operation. According to Mahomed, the acquisition process is expected to be completed soon and the Malawi government and a local consortium will hold the remaining 20 percent. Since then, the mining operation has been renovated and the areas originally worked in 1958 have been further explored. Production is expected to begin in 2015. In an effort to support the local community, Columbia Gem House has set up the Dzonze District Development Fund and is supporting two villages near the mine through a school at Kandoma and a hospital in Katsekera.

In keeping with its mission to ensure the public trust in gems and jewelry, GIA regularly conducts research field trips to important gem and jewelry centers around the globe, incorporating findings into research practices and education programs and providing information to the trade and public. GIA appreciates the access and information provided during these visits; however, they should not be taken as or used as a commercial endorsement. Findings from the Malawi field trip will be featured in an upcoming issue of G&G, as well as in field reports and video documentaries on www.gia.edu.

About GIA

An independent nonprofit organization, GIA (Gemological Institute of America), established in 1931, is recognized as the world’s foremost authority in gemology. GIA invented the famous 4Cs of color, cut, clarity and carat weight in the early 1950s and in 1953, created the International Diamond Grading System which, today, is recognized by virtually every professional jeweler in the world.

Through research, education, gemological laboratory services, and instrument development, the Institute is dedicated to ensuring the public trust in gems and jewelry by upholding the highest standards of integrity, academics, science, and professionalism. Visit www.gia.edu.

After extensive drilling and exploration of the Duwi project in Malawi prospective owners,   Sovereign Metals Limited, have affirmed the mineral project as one of the largest, high grade, flake graphite deposits in the world.

The copper, gold and uranium exploration miner which was recently listed on the Toronto Stock Exchange’s Sovereign Metals Limited, with four key exploration projects believes Duwi project is the ultimate to make real returns.

It says in its report released recently that the highly prospective projects include tenements along strike from Cudeco’s Rocklands Copper Project and a tenement immediately to the south of Summit Resources’ Andersons uranium resource.

Total indicated and inferred mineral resources estimated at Duwi indicate that the project has an estimated 86 tons of graphite flake rated at 7.1 percent grade of total graphitic carbon reserves.

It further contains 6.13 tons of graphite (5 percent cut-off) from a paltry 2.2km drilled so far of the known 24km strike length of the Duwi Trend, indicating a substantial and potential to expand resources with further drilling.

In its report, Sovereign Metals Limited findings show that the Duwi project has mineral Resource estimated at 17 tons at 8.1 percent (7 percent TGC cut-off) from surface to approximately 150 metres below surface.

Sovereign Managing Director Matt Syme has expressed pleasure over these estimates.

“We are very pleased with this initial Mineral Resource estimate at Duwi, that validates our belief in the potential for low-cost, high-grade, flake graphite mining in Malawi,” he said in a statement.

The report adds that a scoping Study will begin immediately to examine a production scenario of 30,000 tons of flake graphite per annum with an estimated expanded scenario of 65,000 tons per annum, based on the Indicated Resource area and Duwi’s world-class large flake metallurgical properties.

The Canadian based miner says total Duwi Mineral Resources at 5 percent is of lower cut-off grade.

The category Tonnage (in metric ton, grade with contained Graphite indicating 35.2 7.2 2.52 inferred 50.7 7.1 3.61 with a total reserve of 85.9 7.1 6.13.

Total Duwi mineral resources at 7 percent is of lower cut-off grade, indicated 17.3 8.1 1.40, with inferred 27.2 7.9 2.16, summing a total of 44.5 8.0 3.56, it adds.

“CSA’s resource estimates and metallurgical test work by Mintek and SGS Lakefield reinforce that Duwi is in the top handful of potential new graphite producers around the world. We will now get on with further proving the potential both at Duwi and at our large portfolio of saprolite-hosted exploration targets,” Syme said.

Meanwhile, following completion of the 2014 resource drilling program, CSA Global Pty Ltd (“CSA Global”) was engaged to complete the maiden Mineral Resource Estimate (“MRE”) for Sovereign’s 100 percent owned Duwi Project in Malawi.

MRE’s have been determined for three zones of mineralisation, being Duwi Main, Duwi Bend and Nyama. The Mineral Resource estimates are reported in accordance with the JORC Code (as outlined in the 2012 Edition of the company report).

Geological survey undertaken recently shows that graphite mineralisation at Duwi and Nyama occurs as multiple, high-grade, bands of flake graphite, hosted within Proterozoic gneissic rocks of felsic to intermediate composition.

Mineralisation is open along strike and down dip in both Duwi and Nyama. Field mapping and trenching of the deposits in 2013 and 2014, has demonstrated geological continuity of the host gneisses. Weathering reaches a depth of 70m below surface, the report adds.

Duwi Main has an east-west strike, dipping 45o to the north. It is currently modelled as two lenses of mineralisation, with a depth extent of 280m, a strike-length of 1,300m and a plan width varying between 25m and 180m. Duwi Bend has a strike of 125o, with a vertical dip.

It is currently modelled as two parallel lenses, with a combined strike extent of 420m, down dip extent of 175m and plan width of 20m. Nyama,

Located approximately 2km west-south-west of Duwi Main, has an approximate east-west strike, and dips 40 degrees to the north. It is currently modelled as three parallel lenses, striking approximately 400m, with a down dip extent of 230m and plan width of 40m.

Metallurgical data previously reported supports the Mineral Resource classification. Flake size distribution and product purity have been assessed from samples derived from diamond core within the fresh rock profile, whilst petrographic analyses of thin sections were undertaken on samples from the saprolitic zone.

Results from initial metallurgical test work by MINTEK Johannesburg indicate the potential of the Duwi Project to deliver a high quality marketable flake graphite concentrate using simple conventional flotation technology.

The Company is highly encouraged by the results of this initial metallurgical testwork program as it shows that commercial grades of sought-after and valuable Extra Large (‘Jumbo’) and Large Flake make up close to two-thirds of the final concentrate.

The proportion of Extra Large and Large Flake is at the higher end of reported graphite projects worldwide and significantly enhances the Project’s commercial appeal.

The developments come in the wake of the Peter Mtharika’s Government seeking to diversify the country’s economy from traditional fishing on Lake Nyasa (Malawi) into a fully fledged mining country after years of reliance of fishing as the country’s mainstay.

Seychelles, like Malawi, despite their vast mineral and natural resources endowed in their respective countries have not maximized to make real returns for their people with Seychelles President James Michel calling for an increase in export of manufactured products during the 34^th SADC Heads of States and Government summit hosted by Zimbabwe last August.

Speaking at the opening of the SADC summit of heads of state and government in Victoria Falls, on the theme: ‘SADC Strategy for Economic Transformation: Leveraging the Region’s Diverse Resources for Sustainable Economic and Social Development through Beneficiation and Value Addition‘, Michel expressed his support for the theme while calling on SADC to ensure that it is properly reflected in its programmes and projects.

“Wealth is created through value addition,” he told delegates in the resort town of Victoria falls.

“Africa represents only three percent of global trade. Africa is exceedingly rich in natural resources therefore we need a renewed focus on the importance of services in economic development and the possibilities for leveraging Global Value Chains to drive rapid and sustainable growth in income and employment,” he continued.

Michel highlighted the oceans as one source of ‘vast wealth’ for Africa adding that there is a huge potential for developing the Blue Economy within the infrastructure framework and policy of SADC.

And, in the same vein, Malawi President Peter Mutharika recently resolved that his Southern Africa state-which has richly enjoyed fish as the country’s mainstay, needed to diversify into mining following discovery of various minerals including diamonds near the Lake Nyasa.

During a communiqué issued at the end of the two day summit, new SADC leader and Zimbabwean President Robert Mugabe emphased on the need for the 15-member states to look inside the region and maximize on their vast mineral and natural potential and depend less on donors to avoid being “domesticated”.

It was firmly resolved by all delegates that the ultimate success to the economies in SADC is to industrialise through beneficiation and ensure maximum use of minerals in all countries through value addition, Malawi, Seychelles included.

Last week, Sovereign Metals announced mineral estimates at its Duwi Trend in the Central Malawi Graphite Project in Lilongwe District. The project has one of the largest, high-grade, flake graphite deposits in the world according to the maiden JORC Mineral Resource estimate.

Managing Director Matt Syme explained that

We are very pleased with this initial Mineral Resource estimate at Duwi, that validates our belief in the potential for low-cost, high-grade, flake graphite mining in Malawi. CSA’s resource estimates and metallurgical testwork by Mintek and SGS Lakefield reinforce that Duwi is in the top handful of potential new graphite producers around the world. We will now get on with further proving the potential both at Duwi and at our large portfolio of saprolite-hosted exploration targets.

Sovereign Metals, registered on the Australian Stock Exchange, is exploring the Central Malawi Graphite Project (CMGP), near Lilongwe. This Project is composed of three tenements totalling 7,261 square kilometres. A number of substantial flake graphite gneiss belts have been identified within the CMGP licences.

Through rock-chip sampling, mapping and the Heli-VTEM survey Sovereign has identified over 50 targets including six prime, large, high-grade, flake graphite targets. These are five prospects within EPL0372 together referred to as the Duwi Trend and the Nanzeka Prospect within EPL0355. The scoping study is expected to be completed in early 2015.

The highlights from the company’s announcement are:

• Total Indicated and Inferred Mineral Resource estimate at Duwi of 86Mt at 7.1% TGC (total  graphitic carbon), containing 6.13Mt of graphite (5% TGC cut-off).
• Only ~2.2km drilled of the known ~24km strike length of the Duwi Trend, indicating substantial potential to expand resources with further drilling.
• Indicated Mineral Resource estimate of 17Mt at 8.1% TGC (7% TGC cut-off) from surface to approximately 150m below surface.
• A Scoping Study will begin immediately to examine a production scenario of 30,000t of flake graphite per annum and expanded scenario of 65,000tpa, based on the Indicated Resource area and Duwi’s world-class large flake metallurgical properties.

Read the full announcement here.

Findings of the ongoing Airborne Geo-mapping survey are expected early next year, as the data collected has been sent abroad for interpretation.

South African based company Sounders Geophysics is carrying out airborne mapping exploration for mineral deposits across the country.

The survey, best known as Kawuni-wuni, is aimed at helping the government identify what minerals the country has that could help attract foreign investors.

According to the Deputy Director of geological survey in the Ministry of Natural Resources and Mining Jelophi Salima, they want to have a clear understanding of the data collected so far.

Globe Metals and Mining, a company that is exploring niobium mining at Kanyika in Mzimba, is planning a diamond drilling programme at Chimutu in Lilongwe which is within the company’s Chiziro Graphite project.

In its monthly update statement, Globe says 17 trenches totalling 6,266 metres have been completed targeting graphite mineralisation identified by a geological exploration programme.

The company says, however, that based on current results, it plans diamond drilling to test the depth of graphite mineralization.

It hopes to start the diamond drilling before the year end, subject to board approval.

Globe says in the statement that the 17 trenches completed, have defined visible graphite mineralisation over six kilometres in strike length.

The company further said the current assay results confirm graphite mineralisation greater than a 3,000 metre strike length.

“Globe has commenced mineralogical test work and is assessing infrastructure and logistics options for a potential mining operation,” reads the report in part.

Globe is assessing other graphite prospects within the Chiziro Graphite Project licence area.

The company has also identified multiple areas of large scale graphite mineralisation within the project area.

Uranium miner Paladin Energy would spend some A$16-million a year on its Kayelekera mine, in Malawi, to ensure that the operation was ready to resume production once the uranium price rebounded.

Speaking to Mining Weekly Online on the sidelines of Paydirt’s Africa Downunder conference, in Perth, Paladin MD John Borshoff said that uranium prices would need to be between $65/lb and $70/lb to validate the restart of Kayelekera.

Paladin officially ceased uranium production at Kayelekera in May this year, placing the mine on care-and-maintenance. Mining operations have been suspended since February, but ore processing had continued.

With the mine ceasing operations, global uranium supply was reduced by around 3.3-million pounds a year.

“Putting Kayelekera on care-and-maintenance does not mean that we have put the project to sleep permanently, but we are waiting for it to awaken. The project has a very real potential to start again, and the medicine it needs to restart is a positive uranium outlook,” Borshoff said.

He told Mining Weekly Online that based on current market analysis, the target uranium price would likely be reached within the next 12 to 24 months.

“When you look at the production curve, we think that price will come very quickly, and it won’t be a gradual thing because it will be based on the security of supply and the fear that that inspires in users, which will cause a stampede for product.”

In the meantime, Paladin would work to increase the resource base at Kayelekera, with the miner spending A$1.5-million a year over 2015 and 2016 on exploration.

“We aim to get the project past a ten-year mine life, up from the current six years,” Borshoff said.

“By our reckoning we need two or three good field seasons to get the necessary resource, and we will start getting into the first season shortly.”

Sovereign Metals intersected more broad, high grade graphite intercepts from the first 11 holes assayed at its Duwi flake graphite project in Malawi.

Results include 84 metres at 9.8% TGC from 24 metres, including 20 metres at 12.8% TGC; and 74 metres at 9.4% TGC from 8 metres, including 10 metres at 12% TGC.

These drilling results, in addition to 2013 diamond drilling results, show a large body of coarse flake graphite mineralisation at Duwi Main Zone including at least two, coherent, high grade zones.

A total of 35 additional holes from the 2014 Duwi drilling program are awaiting assays, and a maiden JORC resource estimate expected to be completed early Q4 2014 by CSA Global.

During the quarter, Sovereign completed an upgrade of raw concentrates to between 99.97 and 99.98% carbon ultra-pure graphite, which was achieved across all flake size fractions.

This indicates that Duwi concentrates may be suitable for the growing market of high-value ultra-pure graphite applications in addition to traditional high volume applications.

In addition, Sovereign is involved in the Carpentaria copper-gold joint venture with a subsidiary of mining giant Glencore, which continues to manage and sole fund exploration on all tenements.

Drilling at the Beauty Prospect is expected to commence in the current quarter.

Sovereign also controls the Tate River gold and base metal project in Queensland, and is capitalised at $39 million.

Intra Energy Corporation Ltd, active in the coal sector in East Africa, with a strong anchoring in Malawi, booming with a steady growth of its coal sales which reached 9% in the fourth quarter of 2014.

She announced on July 3 had sold 66,969 tonnes in the June quarter 2014 representing an increase of 9% compared to the previous quarter, double the 33,909 tonnes sold in June 2013. The company, listed on ASX, welcomes such a performance despite the low tonnage in April and May due to heavy rains and the delayed activities important Tanzanian cement which has resumed its supply in June from the subsidiary Tancoal Energy Ltd. startup.

Intra Energy attributed, in part, the growth of sales increased deliveries in June at the subsidiary Malcoal Malawi, thanks to the start of seasonal sales to agricultural industries. This improvement can be maintained through contracts with new customers, especially in Kenya, said the Australian company.

Intra Energy Corporation Ltd would total, Malawi, 62.3 Mt of JORC resources, 13.6 Mt of measured resources, 18.8 Mt of indicated resources and 29.9 Mt of inferred category.

A 2012 Malawi National Export Strategy details that Malawi produced minerals worth K21.9 billion in 2010 and K23.7 billion in 2011. Not only does the strategy add that Malawi exported K17.8 billion in 2010 and K18.6 billion in 2011; it further shows that mining exports were worth $114 million in 2010, equivalent to 10 percent of all exports and $123 million in 2011.This is why, especially with the commissioning of the Kayelekera Uranium Mine in Karonga in 2009, mining’s contribution to the economy tripled from three percent in 2003 to 10 by 2013.

The fate of Kayelekera has hampered the Malawi economy

This sounds like great news for Malawi as it represents a giant step in the country’s quest to diverse its economy from tobacco.

However, there is a deafening public outcry that despite such lucrative growth in the mining sector, its benefits stop at published government figures.

“There is little, if not nothing, that, as a country, we can show for as a product of mining activities in the country.

“Each and every day we hear of licences being awarded to mining companies; we see mining companies extracting our resources; but poverty in the country continues to deepen.

“Our friends in Zambia are benefiting from copper. Look at South Africa and their gold. Or even Zimbabwe.

“We use to go to these countries to work in mines. Whatever I have today is from the proceeds of my work in Zimbabwe and South Africa. But how many Malawians can own what I have from their minerals?” says Moses Ngwira, 84, a local from Mabulabo in Mzimba.

Such sentiments, regardless of age and geography, can be heard across Malawi. This, somehow, explains why there are always protracted conflicts between communities and mining companies in almost every site where mining exploration or extraction is taking place in Malawi.

The question, however, is: How far true are these sentiments?

The case of Kayelekera gives a good ground for analysis. In 2009, an Australian company, Paladin Limited (PAL), after being granted a mining licence in 2007 by government, commissioned mining of uranium at Kayelekera, a village located 50 kilometres from Karonga Boma.

With $500 million invested, Kayelekera, arguably, became the largest single mining development project in Malawi. Coming from a background where mining was not considered a development priority in Malawi, Kayelekera reignited the forgotten debate on the viability of the extractive industry in Malawi’s development.

The result was a gold-rush.

“Everyone wanted to try his or her luck. Who doesn’t want to get rich? The coming of Paladin created a huge rush for fast ways of improving your life. In fact, we all thought Kayelekera will no longer be a distant village in the remotes. It will turn into a town,” Peter Mwaipolo, 47, told me in an exclusive interview in 2011.

Mwaipolo was not born and raised around Kayelekera—which is an amalgamation of four villages namely, Sere, Mbutuka, Nkhachira and Chiteka. He is from Kaporo, the northernmost community in Karonga. Just like thousands that left their homes and settled around Kayelekera in 2009 to search for fortunes, Mwaipolo came strictly for business.

“I had a grocery. I thought it could be vibrant here because of the mine; there will be a lot of people with steady income. And again, I also won a tender to be providing sand to the mine,” he told me.

In the first years of the mine, he admitted, his wish was being granted.

“There were a lot of people resident here. A number of them were working at the mine. Business was booming,” he says.

In six months, he added, he also built a house at his home in Kaporo.

But when I visited Mwaipolo in 2011, his business was not as vibrant and hopeful as he used to be.

“I only have a single grocery, now. And you can see the stock isn’t that vibrant. The business is shrinking,” he told me.

“At first, the mine employed a lot of unskilled labourers during the construction phase. All these people—both from here and those from other parts of the district—were resident here. But with time, the company was employing more technocrats and firing the unskilled.

“So most of the people who used to buy our goods have left. Even worse, today, the company provides free transport to the Boma every day to its workers. This means even those that are still working and used to live here have relocated to the Boma. It is there where their families are, and again, where they are building their homes and businesses,” he said.

The Kayelekera villages, then, looked desperate and poor. You could count well-built houses with corrugated iron sheets.

In fact, most of the houses you saw at Kayelekera Market were built by Mota-Engil to be used by accommodation for its workers during the construction phase of the mine. The biggest one was two-roomed, built of mud, grass-thatched and its height is quite eluding to fit a grown up. This is the one Mwaipolo rented as a grocery.

The tragedy of it all was that Kayelekera—riddled with tiny, falling thatched houses and shacks—was touted years ago that, with the mining happening adjacent to it, will turn into a town. In fact, some banks started to troop there. NBS Bank had an agency which, at the time of the reporter’s visit, was not operating. Though quite an appealing structure, the NBS Bank looked an odd one out, standing amid small, falling thatched houses and squatters all over.

Of course, I saw a primary school that Paladin renovated and built and some four teachers houses. But beyond that, the communities, Mwaipolo told me, ‘cough K800 to get to the nearest health centre in Wiliro’.

Unarguably, the general feeling I got, then, was of a village extracting poverty in adjacent mines of wealth.

I returned to Kayelekera last week, three years after the last visit in 2011 and, almost five months after the closure of the mine.

I did not find Mwaipolo. The village had become deserted: no shops, no beer-halls, no sound of stereo equipment; just dead and silent.

“There is no life here,” a local told me, “everything and everyone is gone. We have returned to where we were before the mine came.”

They still do not have a health centre. Not even a better road to connect them to the Boma. No safe water. No secondary school. No market. And above all, still without electricity.

A 2013 study by the Norwegian Church Aid titled Malawi’s Mining Opportunity: Increasing Revenue, Improving Legislation, provides critical revelations about the scale of loss from Kayelekera.

The study details that Malawi gave Paladin “significant tax concessions and the fear that Malawians are gaining little from the agreement.”

“Government reduced Paladin’s corporate income tax rate, abolished its obligation to pay Resource Rent Tax, reduced its royalty rate to an initial 1.5 percent [compared to national rate of 5 percent], gave it other tax concessions and set these in stone for ‘at least’ 10 years.

“In return, government acquired a 15 percent stake in the project,” reads the study.

The study, then, conclude that with such an agreement, “it means that Paladin is paying very little in tax”.

The study further estimates that revenue losses to Malawi from the tax regime given to Paladin for its Kayelekera Mine are around $205 million, and could be as high as $281 million, over the 13 years of the project.

“This amounts to a mean average of $15.8 million a year (K6.5 billion) but which could be up to $21.65 million a year (K8.9 billion),” shows the study.

If one could estimate, the K6.5 billion a year could pay district councils to more than double their procurement of drugs or more than double the allocation in the budget for recruitment of 16 000 teachers for primary, secondary and special needs education.

What emerges from the Kayelekera story is that there is a lot of wealth being generated from the country’s extractive industry and, though figures shows a growth in the sector, the benefits to Malawians is marginal.

Kanyika Niobium Project in Mzimba and Chiziro Graphite Project in northeast of Lilongwe are progressing according to Globe Metals & Mining‘s recent announcements. These projects are two of the four projects being run by the Australian-listed, African-focused specialty metals and rare earths company.

In March 2014, Globe announced that its 40-tonne bulk sample from the Kanyika Niobium Project arrived in China for the metallurgical pilot plant programme. Globe’s announced today (26 June 2014) that Kanyika metallurgical pilot plant has now commenced operations at Guangzhou Research Institute of Non-Ferrous Metals (GZRINM). Circuit optimisation is currently underway. This is expected to be complete by the third quarter of 2014.

Operations at the pilot plant are explained in the announcement,

The first of four pilot-plant runs is now in progress, using a feed blend of surface and transition material. This blend represents the mill feed in the initial years of plant operation. As part of process optimisation, minor changes to the processing circuit are being made to increase recovery and grade of the concentrate, as well as reduce reagent consumption. Once the circuit has been optimised for this blend, subsequent pilot runs will focus on testing alternate mineral blends and further optimising the reagent scheme for these blends.

The mineral concentrate produced from this pilot plant exercise will be used for further downstream metallurgical testing and production of marketing samples. Preliminary samples have been collected and mineralogical work is currently underway at a metallurgical laboratory in Perth to support optimisation efforts. Progress and interim results of the pilot plant will be reported when available.

Yesterday (25 June 2014), Globe released an announcement about its Chiziro Graphite Project. The company acquired the Exclusive Prospecting Licence for this project in 2012. To date, Globe has completed a mapping and rock chip sampling programme at the Chimutu Prospect within the project. Rock chip samples were collected during an exploration programme in March and April 2014. Assays on the 40 rock chip samples have now been completed. Globe is encouraged by the results: 22 of the 40 samples assayed greater than 10% Total Graphitic Carbon (TGC) with one sample assaying a high of 52.5% TGC.

Globe has carried out geological mapping along with this initial encouraging rock chip sampling. Subsequently, a broad spaced trenching programme has been planned for the Chimutu area, within the Chiziro Graphite Project to test the indicated strike length of graphite mineralisation. Trenching is planned for an estimated 5,600 metres for the Main and Musinda Trends to define the nature of graphite mineralisation over a 4 kilometre extent.

Globe has not yet moved from prospecting to mining at any of its project sites in Malawi. The company continues to negotiate the terms of the Mining Development Agreement with the Government of Malawi for the Kanyika Niobium Project. TheInternational Senior Lawyers Project (ISLP) has provided pro bono lawyers to the Government for these negotiations. ISLP sent Mark Goodrich, a partner at White & Case LLP, to Malawi in May 2014 to support these negotiations. Negotiations are ongoing.

Once a beacon of hope in the mining sector in Malawi, now it is approaching its ruins.

Reports from the Kayelekera uranium mine in Karonga indicates that Paladin company that runs the mine is set to lay off some 300 staff today as the company sees no future in its operations in the country.

The decision has come after some civil societies, and Peoples’ Transformation Party President — Kamuzu Chibambo, had had queries with the government and Paladin on how the proceeds from the mining were being used.

Reports indicated that Paladin was on a tax holiday to the Malawi government and further allegations indicated that there was corruption in the awarding of the licence and its subsequent management. However, Paladin Africa denied the corruption allegations.

Meanwhile, some commentators had warned that the tax holiday that Paladin was given was a non-starter in the mining business but there calls were not heeded to by the government.

Malawi has been attempting to make in-roads into the mining sector but has always met setbacks. The most recent have been the case of the oil exploration on Lake Malawi which have stirred trouble with Tanzania. On the other hand, bauxite mining from Mulanje mountain has been met by a court order locals obtained against the activity.

In 9 months, Malawi will give birth to its next president. In the upcoming May 2014 tripartite elections, Malawians will go to the polls to vote for ward councillors, members of parliament and the state president in what is likely “to be the tightest electoral contest since its [Malawi’s] return to multiparty democracy in 1993“.

We agree with Malawian academic, writer and communications scholar  Kainja that the line up for 2014 is set:

Smaller parties may yet feature their own presidential candidates and independent candidates may yet emerge but it is safe to say that baring any form of incapacitation, next year today one the following people will be a president of Malawi: Joyce Banda, Peter Muntharika [sic], Atupele Muluzi or [Lazarus] Chakwera.

In short (for further analysis, read Kainja’s reflections and he is currently writing on a weekly basis for Malawi’s main online news source Nyasa Times as well as Malawian BBC correspondent Raphael Tenthani’s Muckracking on Sunday column),

• Joyce Banda: current president of Malawi under the banner of the People’s Party; she took over from Bingu wa Mutharika who died in office in April 2011.
• Peter Mutharika: the late president’s brother at the helm of the Democratic Progressive Party, Professor of International and Comparative Law Emeritus (Washington University).
• Atupele Muluzi: the son of Bakili Muluzi, Malawi’s first president to be voted in during multiparty democracy in 1994, running on the United Democratic Front’s ticket.
• Lazarus Chakwera: former president of Malawi Assemblies of God and presidential candidate for the Malawi Congress Party, the party that ruled the nation from 1964 to 1994.

On Sunday (8 September 2013), presidential aspirant Chakwera reportedly “faulted government policy of allowing mining investors into the country anyhow” on the basis that this “does not benefit people as there are no mechanisms to monitor the mines”.  He made these comments during a rally in Malawi’s northern region of Karonga which is home to the largest mining project in the country.

Kayelekera uranium mining project is wholly owned by Paladin Africa Limited which is a subsidiary of Australian-listed Paladin Energy Limited. The Government of Malawi has a 15% stake in Paladin Africa. The mining company has come under attack fromtraditional leaders and civil society recently on the grounds that the country is losing out because of tax incentives given to the company (see recent Action Aid report with data on Malawi here) and the lives of people in surrounding communities have not improved as much as expected.

As a result, there have been some calls for the government to renegotiate the Mining Development Agreement with Paladin. The government has responded ambiguouslyto the demand by citizens for renegotiation, but Greg Walker, Paladin Africa’s General Manager for International Affairs clearly asserts that the company will not enter into renegotiations at any stage.

This explains why the Malawian government has enlisted the help of pro bono lawyersin ongoing negotiations with Globe Metals and Mining about the Mining Development Agreement for the Kanyika Niobium Project. The government has also established a relationship with the University of Dundee’s Centre for Energy, Petroleum and Mineral Law of Policy to provide technical assistance in preventing “the theft of our minerals“, in the words of Malawi’s Minister of Mining John Bande.

As the presidential candidates begin to outline their policies and stance on key national issues, the extractive industry must be high on their agenda. Many questions need to be asked of the leaders of Malawi’s four largest political parties, however, concentrating only on particular issues such as the Kayelekera uranium project and current dispute with Tanzania over Lake Malawi will detract from the broader discussion we need to have about regulation and legislation of Malawi’s extractive sector for the benefit of not only companies but the country and surrounding communities now and in the future.

How will the post-May-2014 government use the money received from our exported non-renewable resources?

Like Kainja, we demand substance from the presidential candidates.

The Ministry of Mines will investigate claims that gold deposits are being exposed in Mwanza where the Brazilian company, Vale Logistics, is carrying out a railway construction project.

Two weeks ago, clashes erupted between villagers and railway project construction workers in Traditional Authorities Simon and Chekucheku in the district over alleged gold fragments that were exposed in the area.

However, Mota Engil – the contractor that is working on the rail project, has dismissed claims that there is illegal mining of gold taking place alongside its construction works.

Minister of Mines John Bande saidon Tuesday the ministry will investigate the matter.

“If Mota-Engil have come across precious stones, they should have informed us for appropriate action. But we will investigate the matter to establish the truth,” said Bande.

He said President Joyce Banda has already directed that geological surveys should be conducted throughout the country to establish complete facts about Malawi’s minerals landscape, including in the area in question.

He said mining is a delicate activity and that it is impossible to extract minerals from the earth and process them without having an impact on the air, land and water, as well as plant and animal life.

“Mining must always be undertaken with minimal disruption of the environment during exploration and exploitation and to maximise the effectiveness of rehabilitation of land and closure measures at the end of the mine’s life,” said Bande.

One villager from Traditional Authority Simon’s area told our sister paper, Malawi News last week, that a crane working on the site exposed some precious stones which the villagers started to pick, resulting in a feud between the two parties.

Chief Chekucheku also told the paper that for some time, people in the area have heard that people were extracting precious stones.

However, Mota Engil Contractual Matters Manager Noel German said the story may have come out of confusion with some part of the project in Mwanza where another company is running a concession to explore gold.

Currently the French government and World Bank are funding different air surveys covering the whole country. – By Caroline Kandiero

Check out more information about Gold in Malawi on africa-investor.blogspot.com