Ministry of Mining Principal Secretary Joseph Mkandawire has expressed excitement over the acquisition of Balaka-based Kangankunde Rare Earths mine by Lindian Resources Limited.

In an interview on Monday, he said like other mining projects in the country, Kangankunde mine will contribute to the country’s economic growth.

“Government will get revenue in form of taxes and other fees. The company will also create jobs and open opportunities for businesses,” said Mkandawire.

Mkandawire: It will increase revenue

In a written response, Lindian Resources Limited chairperson Asimwe Kabunga said the company is securing more capital to start mining activities.

He said as more value is added to the project, more funding will be secured to grow their operations in the country.

Kabunga said they will begin infill-drilling and start metallurgical test work in the few years.

He said: “The project has been idle for too long and we are committed to getting started soon. We already have a granted mining licence, which gives Lindian a shorter runway than most mining projects.

“Customers for the mineral concentrate will need to be assured of the longevity, quality and sustainability of the operation.”

In a separate interview, mining expert Grain Malunga stressed the importance of transparency in the negotiation process.

He said: “For example, Kangankunde has all the necessary infrastructure in contrast with Kayelekera Uranium Mine in Karonga.

“Government can look at minimum subsidies that it can offer to companies facing infrastructure challenges.”

Lindian Resources Limited will take control of Kangankunde through a 100 percent share acquisition of the project’s owner Rift Valley Resource Developments.

The funds will be paid in four tranches, with a non-refundable deposit of $2.5 million (about K2.5 billion), and a further $27.5 million (about K27.5 billion) which will be paid in three instalments within four years from the date of agreement.  

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