2024 was a milestone year for Malawi’s rare earth sector, with two of the country’s most advanced projects reaching significant development stages.

Kangankunde: Feasibility Study Confirms Low-Cost Project

Lindian Resources’ Kangankunde rare earth project — located in southern Malawi — completed a Stage 1 Feasibility Study in June/July 2024. The results were favourable:

  • 45-year mine life based on the current resource estimate
  • Pre-production capital expenditure: $40 million — one of the lowest capital cost profiles for a rare earth project globally
  • Target production: approximately 15,300 tonnes per annum of high-grade concentrate

The low capital intensity is Kangankunde’s key competitive advantage. Most rare earth projects require hundreds of millions to reach production; $40 million pre-production capex puts Kangankunde in a different category. At the Critical Minerals Africa Summit 2024, Malawi’s proactive approach to attracting rare earth investors was specifically highlighted.

Songwe Hill: Mining Development Agreement Signed

Mkango Resources and its subsidiaries signed a Mining Development Agreement (MDA) with the Malawi government for the Songwe Hill Rare Earth Project in July 2024. The MDA provides the legal and fiscal framework under which the project will be developed.

The development timeline per the DFS (Definitive Feasibility Study) envisions:

  • Mining starting from February 2025
  • Processing ramping up from July 2025
  • Full production from September 2025

MDAs are significant in Malawi’s mining framework — they lock in investor protections, fiscal terms, and government commitments for the project’s life. The signing represents a major step from exploration to committed development.

The context: India’s interest and Malawi’s positioning

India has identified Malawi as a strategic partner for critical minerals supply. Indian President Droupadi Murmu’s visit to Malawi in October 2024 reaffirmed bilateral commitments across multiple sectors, including mining. India’s interest is partly in response to China’s dominance in global rare earth processing and the need for diversified supply chains.

Malawi’s positioning — multiple advanced rare earth projects with government commitment, combined with the country’s relatively stable political environment and improving investment framework — makes it a realistic source of supply for Western and Asian buyers seeking non-Chinese alternatives.

The $30 billion target

The Malawian government has stated a target of $30 billion in mineral export revenues between 2026 and 2040, with annual revenues of $3 billion projected by 2034. Rare earths, graphite, and uranium are the three primary drivers of this target.

Whether the target is achieved depends on multiple factors: global prices, financing availability, infrastructure development, and governance. But the projects pipeline is real, funded, and advancing.

Our read

The rare earth sector represents Malawi’s most credible path to significantly diversifying away from tobacco dependency. Both Kangankunde and Songwe are real projects with credible operators, completed feasibility work, and government agreements in place. Companies in the supply chain — logistics, processing equipment, technical services, construction — should be watching these timelines closely.

Sources: Lindian Resources, Mkango Resources, Mining Weekly August 2024, African Mining Online January 2024.