Malawi mining boom raises hopes and warnings

Malawi is attracting new mining projects for rare earths and critical minerals, raising hopes of economic growth while experts warn that stronger institutions and local processing will be needed for broad benefits.

The southern African country has long depended on agriculture, aid and exports such as tobacco, tea and sugar. New projects are targeting minerals used in the energy transition and advanced manufacturing.

In central Kasiya, Australian company Sovereign Metals says it is advancing a project on what it describes as the world's largest natural deposit of rutile, used in titanium production, and one of the largest deposits of graphite, used in lithium-ion batteries.

Parliamentarian Lawrence Chakakala Chaziya, whose constituency includes Kasiya, said expectations were high and residents hoped the project would improve social services. He said he had urged people not to sell their land.

Other Australian and Canadian groups are developing rare earth projects, including minerals used in magnets for electric vehicles and wind turbines, and reviving a long-dormant uranium mine.

Mining currently contributes about one percent of Malawi's gross domestic product, according to figures cited by the Chamber of Mines and Energy. The World Bank estimates the sector could account for about 12 percent of GDP by 2027, with cumulative mineral exports reaching $30 billion between 2026 and 2040.

The government passed a law in 2023 removing a 10-percent ceiling on state participation in mining. Acting mines director Mphatso Chikoti said Malawi also plans a state mining company to pursue exploration, joint ventures and mineral beneficiation.

Experts warned that Malawi needs stronger skills, geological mapping, tax systems and domestic processing to avoid exporting raw materials without wider gains. Deprose Muchena of the Open Society Foundations said Malawi had a small window to turn mineral discoveries into economic development.