Malawi mining sector faces growth hurdles amid license freeze

The Chamber of Mines and Energy in Malawi has expressed concern that a government suspension of new mining licenses and a ban on raw mineral exports are hindering the country’s efforts to attract investment and revive the extractive sector. Currently, mining contributes approximately one percent to Malawi’s GDP, a figure officials suggest is lower than expected due to administrative suspensions and the lack of large-scale operational mines.

Despite these regulatory hurdles, some projects are progressing. Lindian Resources Limited has completed its first production blast at the Kangankunde Rare Earth Project in Balaka District, with mine commissioning targeted for October.

In an effort to support sector growth, Standard Bank Malawi has committed to providing advisory services and project financing. The bank is specifically looking to support artisanal and small-scale miners, including efforts to formalize the gold value chain. The Malawi Ministry of Mining has welcomed this move, emphasizing the need to mobilize domestic financing to reduce reliance on external markets while promoting domestic value addition through the restriction of unprocessed mineral exports.