Malawi Government is renegotiating the Kanyika Mining Development Agreement to create a win-win situation in which Malawi, as a country, maximises benefits from niobium mining, Principal Secretary in the Ministry of Mining Dr. Leonard Kalindekafe has said.
Kalindekafe said the negotiations are focusing on the fiscal regime, duty exemptions, operational and employment matters, royalty issues, environmental management plan, downstream processing to encourage local value addition, procurement of goods and services locally, among other areas.
He said government will ensure that commencement of mining activities is not delayed.
Globe Metals and Mining Limited, owners of Kanyika Niobium Project in Mzimba, last Friday provided an update on the Definitive Feasibility Study (DFS) into the development of the mine.
The company said technical components of the DFS are now nearing completion and a preliminary summary has been submitted to the board for review.
The mining firm, however, said the release of the final DFS has been delayed partly due to ongoing Development Agreement (DA) negotiations with government, which were impacted by a recent organisational restructuring within the Malawi Ministry of Mining.
It added that significant progress has been made since negotiations with the Malawi Government resumed in mid-February and are on track to be completed in the forthcoming months.
Globe’s acting chief executive officer and exploration manager Fergus Jockel, in a statement, said: “Globe’s immediate focus remains on completing the final DFS and progressing its potential development plans at Kanyika. Despite the delay, the company has achieved significant milestones with respect to the progress of the DFS.”
He said prior to the organisational restructuring experienced within the Malawi Government, Globe was advancing as planned towards completion of the DA negotiations.
Jockel said the board is confident that the negotiations are on track, given the positive discussions held since mid-February.
“As we progress towards completion of the final DFS, Globe is evaluating all aspects of the development and refining process to increase efficiencies and lower costs. The board remains committed to meeting the expectations of all stakeholders,” he said.