Highlights
- Chilwa Minerals Ltd initiates ground truthing for 47 rare earth element targets at Lake Chilwa Project in Malawi.
- Malawi has significant rare earth reserves, with Kangankunde Hill and Songwe Hill as major deposits attracting international interest.
- Australian and Canadian companies, Lindian Resources and Mkango Resources, are developing key rare earth projects in Malawi.
Chilwa Minerals Ltd reports initiating ground truthing for 47 rare earth element (REE) targets at its Lake Chilwa Project, following promising results from aeromagnetic and radiometric surveys. The company is focusing on several high-priority targets for potential REE mineralization, and soil samples will be sent to Ireland for further analysis. Expert Russell Birrell has been appointed to assist with the soil geochemistry analysis, as part of Chilwa’s strategy to explore both mineral sands and rare earth elements.
What is the Lake Chilwa Project?
The Australian rare earth mining company reports its project is located around the western and northern shores of Lake Chilwa in Southern Malawi.
Known as “The Warm Heart of Africa” , Malawi is a landlocked country in southeastern Africa famed for its warmth and friendly people. The country is bordered by Zambia to the west, Tanzania to the north and northeast, and Mozambique to the east, southeast and southwest. Malawi spans over 118,484 m2 (45,747sq m) and has an estimated population of ~20.5 million (2024).
The Location
Malawi is an underexplored country with what the company refers to as a stable regime and an emerging mining destination with a supportive Government and a newly developed infrastructure network.
In February 2024, a Presidential ‘State of the Nation’ address was made, prioritizing Agriculture, Tourism and Mining ( ATM) as their key focus sectors.
So, is Malawi actually stable?
Overall, the African nation is considered relatively stable compared to some of its neighboring countries in sub-Saharan Africa, but it does face challenges that impact its stability. The country has a history of peaceful political transitions, and its democratic institutions, though sometimes under strain, have shown resilience. However, Malawi experiences ongoing challenges from political tensions and economic challenges (e.g. high poverty rates) to social issues and climate vulnerability.
In general, while Malawi is considered one of the more stable countries in its region, its stability is continually tested by economic and social issues.
What about Malawi rare earth reserves?
Malawi has promising rare earth mineral reserves, especially given its geological features and recent exploration efforts. The country is emerging as a player in rare earth elements (REE) mining in Africa, with some deposits considered significant in global terms.
Rare Earth Exchanges provides a breakdown of some activities.
| Deposit | Summary |
|---|---|
| Kangankunde Hill | This is one of the largest and most well-known rare earth deposits in Malawi, located in the south of the country. The deposit contains substantial reserves of rare earth elements, especially enriched in neodymium and praseodymium, which are vital for technologies like electric vehicles, wind turbines, and electronics. |
| Songwe Hill | Another important site, Songwe Hill, is situated in southeastern Malawi. This deposit is also rich in neodymium, praseodymium, and dysprosium. A mining company, Mkango Resources, has been developing the site and aims to turn it into a major producer of rare earths. The resource estimates here show considerable promise, with plans for extraction and processing. |
| Monazite and Bastnaesite Minerals | Malawi’s rare earth reserves contain monazite and bastnaesite minerals, both of which are crucial sources of rare earth elements. These minerals are known for containing high concentrations of critical REEs like neodymium and lanthanum. |
Potential and Challenges
Malawi’s rare earth reserves are attracting international interest, especially from companies looking to diversify supply chains away from China, which currently dominates REE production. However, there are some challenges that include 1) infrastructure 2) environmental and social concerns and 3) geopolitical interest.
Overall, Malawi’s rare earth reserves are still in the early stages of exploration and development but hold significant potential that could help diversify the global supply of these critical minerals.
What companies are involved?
The lease to Kangankunde Hill, Malawi’s major REE deposit, is currently held by Lindian Resources Limited (opens in a new tab), an Australian mining company. Lindian acquired the rights to Kangankunde in recent years, positioning it as one of Africa’s most promising sources of rare earth elements, particularly for neodymium and praseodymium.
Lindian Resources has ambitious plans to develop the Kangankunde site into a high-grade, sustainable rare earth production operation. The company aims to capitalize on the growing global demand for REEs, essential in sectors such as electric vehicles, renewable energy, and high-tech manufacturing.
What follows are some key activities involving this lease:
| Activity | Summary |
|---|---|
| Exploration and Development | Lindian Resources has been conducting extensive exploration to confirm the quality and scale of the reserves, which are expected to contain large quantities of high-grade rare earth elements. The project has drawn interest due to its substantial size and the favorable composition of its REEs. |
| Project Goals | Lindian plans to establish extraction, processing, and export infrastructure. The company envisions Kangankunde as a sustainable operation, especially given the rare earth market’s push toward stable, environmentally conscious sourcing. |
| Strategic Importance | Kangankunde deposit is seen as one of the few significant REE deposits outside China, making it strategically important in global efforts to diversify rare earth supply chains. |
Lindian’s involvement has raised hopes for economic development in Malawi through job creation, infrastructure improvements, and revenue from exports. However, success will likely depend on overcoming logistical challenges and ensuring responsible environmental and social practices.
What about Songwe Hill?
The rights to the Songwe Hill rare earth project in Malawi are held by Mkango Resources Limited (opens in a new tab), a Canadian-based mining and exploration company. Mkango Resources has been working on the Songwe Hill project for over a decade and has invested significantly in exploration, resource estimation, and feasibility studies.
The Songwe Hill deposit contains a mix of rare earth elements, notably neodymium, praseodymium, and dysprosium. These are highly valuable in the production of magnets used in electric vehicles, wind turbines, and other green technologies.
Mkango Resources has advanced the Songwe Hill project through extensive drilling and feasibility studies, aiming to establish it as a major producer of rare earths. In 2022, Mkango completed a definitive feasibility study, showing promising economic viability for the project.
Mkango is working with both the Malawian government and local communities to ensure that the project benefits the region while minimizing environmental impact. They are exploring sustainable mining practices, given the potential environmental risks associated with REE mining.
SongweHill is significant for global rare earth supply chains, as countries seek alternatives to China’s dominance in the market. Mkango’s project could play a role in diversifying sources of these critical minerals.
Mkango Resources has attracted international interest and partnerships, especially as global demand for rare earth elements rises. The company continues to focus on developing Songwe Hill into a stable and sustainable source of REEs, positioning Malawi as a potential key player in this mark
Daniel
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