Songwe rare earth project edges closer to mining

The proposed Songwe Hill Rare Earths Project in Phalombe has moved a step closer to becoming a reality after Mining Minister Thoko Tembo said government is finalising the legal framework required before mining licences can be issued.

The development raises hopes of new jobs, increased investment and value addition in Malawi’s mining sector as the project advances towards the construction phase.

Speaking after touring the project site on Saturday, Tembo described Songwe Hill as one of Malawi’s most promising mining investments, saying exploration and research activities were nearing completion.

“”As you are aware, there is a moratorium on the issuance of mining licences. The Ministry is working hard to ensure the right regulations and legislation are in place so that both Government and mining investors are guided by the law,” Tembo said.

He said the rare earth project is expected to promote mineral beneficiation, create employment opportunities and contribute significantly to the country’s economic growth.

Mkango Resources President Alex Lemon said exploration had been completed and the revised feasibility study technical report published, with the company now awaiting a mining licence while progressing with Front End Engineering Design (FEED) ahead of construction.

“This project is a game changer. We will undertake value addition here at Songwe in Phalombe, ensuring that Malawi benefits more from its rare earth resources,” Lemon said.

Speaking on behalf of Paramount Chief Kaduya, Traditional Authority Mkhumba welcomed the progress, saying communities were looking forward to the start of construction and the economic and social opportunities the project is expected to bring.

The Songwe Hill Rare Earths Project, being developed by Lancaster Exploration, a subsidiary of Mkango Resources, in partnership with the Malawi Government, is expected to produce about 5,954 tonnes of rare earth oxides annually over an estimated 18-year mine life.