Mkango Resources Limited, a dual-listed mining firm, says rare earths prices continue to rise on the global market and concerns over security of supply provides a favourable market for Malawi.
The mining firm has been exploring rare earths at Songwe Hill Rare Earth Project in Phalombe since January 2010.
In a published statement, the firm’s chief executive officer William Dawes said demand has been accelerated by the growing demand in electric vehicles, wind power and green technology applications.
His remarks follow the completion of the firm’s flotation pilot plant for the Songwe Hill project at ALS Metallurgy in Perth, Australia.
“We are pleased to have completed this major milestone for the project and look forward to updating the market when the results are available,” he said.
Mkango Resources Limited is developing 51 percent-owned rare earths project in Phalombe with the ongoing feasibility study funded through a £12 million (about K14 billion) investment by strategic partner Talaxis Limited.
Following the completion of the feasibility study, Talaxis has an option to acquire a further 26 percent interest in Songwe by arranging financing for project development, including funding the equity component.
Meanwhile, the Ministry of Economic Planning and Development is banking on the mining sector for the realisation of Malawi 2063 (MW2063), the country’s long-term development blueprint.
The MW2063 has three pillars, including industrialisation with a focus on mining.
In an earlier interview, Ministry of Economic Planning and Development Principal Secretary Winford Masanjala said the country needs to have serious mining ventures.