Mkango Resources gets environmental nod on Songwe Rare Earth project – Capital Radio Malawi
10 February, 2025

Mkango Resources gets environmental nod on Songwe Rare Earth project

Mining prospects of Rare Earth on Songwe hill in Phalombe have gained momentum as government approves an Environmental, Social & Health Impact Assessment report for the same.

Canadian firm Mkango Resource limited has disclosed that the Malawi Environmental Protection Agency (MEPA) has made the approval.

Commenting on the development president of Mkango Resources Alex Lemon has expressed optimism of further progress in the project following the approval.

 “The approval of the ESHIA for the Songwe Hill Rare Earths project is a major achievement for Mkango and Malawi’s first rare earth mining project… We look forward to the Mining Licence and MDA (Mining Development Agreement) being approved in the coming weeks,” Lemon said.         

The Mkango team has through their twitter also described the ESHIA approval as a major milestone, and stepping stone to MDA & project development.

The company is eying a mining license to enable them commence works in the next two years.

“The Malawi Ministry of Justice has appointed a London based international law firm with mining expertise to carry out a final review of the Mining Development Agreement (“MDA”) and we are hoping to shortly conclude an agreement that is a win-win for both the Nation of Malawi and all of Mkango’s stakeholders,” added Lemon.

The project is capital intensive, with a projected $277.4 million capital expenditure to bankroll.

Actual mining on Songwe is scheduled to commence in 2025, with an anticipated average production of 5 954 tons of total Rare Earth Oxides annually in the first five years.

Rare earths are used in rechargeable batteries for electric and hybrid cars, advanced ceramics, computers, DVD players, and wind turbines.

Mkango also has footprints in Malawi in other projects which include the Mchinji rutile discovery, in addition to the Thambani uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.

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