adminMkango corporate communications manager Ashlee Utterback said the company which commenced trading in 2011 was granted the extension following successful delivery on the objectives outlined at the time of listing.
The firm is now focused on progressing the Songwe Hill project to the production stage. The extension became effective last January and is due for renewal in 2014.
“The EPL grants Mkango exclusive rights to explore for all 17 rare earth elements as well as strontium, niobium, iron ore, manganese, gold, silver, copper, bauxite, fluorite, phosphate, uranium, thorium, monazite, nepheline, syenite, zircon, tantalum, clay, kaolinite, and associated minerals,” she said.
“Mkango believes Malawi is one of the most favourable jurisdictions to be operating in Africa and has the potential to become one of Africa’s foremost rare earth producers”.
“Malawi is a stable country, has strong government support for new mining initiatives, allows year round exploration and mining providing a low cost exploration environment and has significant geological potential with improving infrastructure,” she said.
Mining ministry principal secretary Leonard Kalindekafe said all mining activities being conducted in the country have been included in the mining governance and growth support project which will support government’s mining sector reform programme.
The project is being financed by the World Bank (credit of US$25 million) and the European Union (US$5,66 million).
The French government will also spend EUR 11 million providing technical expertise for geological mapping of the country.
Kalindekafe said the aim of the project is to improve the efficiency, transparency and sustainability of management of the mining sector.
“It will focus on strengthening institutional capacity of the sector with modern mining legislation and computerised mining cadastre,” he said.
Utterback explained that Mkango sees the investment environment in Malawi as favourable in terms of the upcoming infrastructure projects, such as Vale investment in Malawi’s rail rehabilitation and the improvement taking place in the energy sector.
Brazilian mining giant Vale is building a US$2 billion railway line from Moatize, in the western province of Tete, to the northern Mozambican port of Nacala going through southern Malawi to transport coal, agricultural products and other mineral products to Moatize as the shortest way of reaching Nacala from Malawi.
The spokesperson was also upbeat about the country’s current regulative and legislative framework including the recently signed power interconnection deal with Mozambique which will see Malawi tapping electricity from Mozambique’s Cahora Bassa power station saying “it is good for mining investors”.
Malawi is slowly discovering a number of deposits like oil, gas, coal, uranium, gold and lime in several parts of the country. – CAJ News.
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