Malawi - Mining and MineralsMalawi - Mining and Minerals
Overview
The mining sector in Malawi accounts for about 1% of the country’s GDP. In 2017, growth in the mining and quarrying sector was estimated at 1.6%. Growth in 2018 is projected at 2.3%. Malawi has several minerals with economic potential, such as : Phosphates (apatite), Bauxite, Kaolinitic, Coal, Kyanite, Limestones, Rare Earths (including Strontianite and Monazite), Graphite, Sulphides (Pyrite and Pyrrhotite), Titanium minerals along the Lakeshore, and Vermiculite. Most of these minerals have been evaluated in the past by either the Geological Survey Department or private companies. Only phosphate, coal, limestone, and uranium have been exploited. In addition, rock aggregate is exploited in many parts of the country for the construction industry.Artisanal and Small Scale Mining (ASM) in Malawi is generally carried out through labour intensive methods for limestone for lime production, clay for pottery, and gemstones. Small scale mining is facilitated by Mineral Permits, Mining Claim Licences, and Reserved Mineral Licences.
The Malawi Geological Survey Department recently released the results of the high resolution airborne geophysical survey whose data can be readily procured for analysis. Follow up field surveys that include sample collection are underway that should provide more granular data about mineral deposits.
| 2014 | 2015 | 2016 | 2017 (Estimated) | |
| Total Local Production (USD) | 24,397,872.34 | 17,139,880.95 | 15,998,626.37 | 16,215,068.49 |
| Total Exports (USD) | 2,140,000.00 | 813,000.00 | 9,135,000.00 | 1,316,000.00 |
| Total Imports (USD) | 473,708,000.00 | 323,969,000.00 | 334,306,000.00 | 320,302,000.00 |
| Imports from the US(USD) | 29,000.00 | 147,000.00 | 64,000.00 | 147,000.00 |
| Total Market Size (USD) | 495,965,872.34 | 340,295,880.95 | 341,169,626.37 | 335,201,068.49 |
| Exchange Rates | MK470/USD | MK672/USD | MK728/USD | MK730/USD |
Leading Sub-Sectors
Malawi’s long term goal is to increase the mineral sector’s contribution to GDP from less than 2% in 2011 to 10% over the coming years. Potential exploration targets include rare earth minerals, gold, uranium, platinum group of minerals (PGMs), base metals (nickel and copper), dimension stone, phosphates, heavy mineral sands, graphite, coal, niobium, tantalum, bauxite, cement, rubies, chromium, lead, zinc, phosphate, potasium, and petroleum.Several international companies are already actively engaged in the mineral exploration and mine development for various minerals. In 2013 Australian based Paladin opened a urnaium ore mine at Kayelekera in the Northern District of Chitipa. The mine is currently mothballed due to depressed global yellow cake prices. The other most sought after minerals are rare earth elements, niobium, uranium, zircon, tantalite, limestone, and heavy metal sands.
Opportunities
Malawi has found new deposits of minerals, including but not limited to, rare earth minerals, limestone and dolomite, coal, uranium, heavy mineral sands, semi-precious gemstones, bauxite, graphite, gypsum, kaolinitic ceramic clays, glass sands, brick clays, rock phosphates, vermiculite, talc, pyrite/pyrrhotite, salt, kyanite, as well as alluvial gold mineralization and kimberlitic anomalies. Like many other African countries, most of these minerals remain untouched. Many reports and maps of more detailed information regarding the minerals such as sizes, grade, and location are readily available for future investors.Table showing Potential Mineral reserves in Malawi
| Mineral | Potential reserves (Million Tons) |
| Bauxite | 28.8 |
| Coal | 24.7 |
| Dimension Stone | Blue, Black, Green, and Pink Granite |
| Gemstones | Numerous pegmatites and volcanic |
| Glass Sands | 1.6 |
| Graphite | 8 |
| Limestone | 25 |
| Mineral sands | 1,395 |
| Monazite/Strontianite | 11 |
| Phosphate | 2 |
| Pyrite | 34 |
| Uranium | 12.5 |
| Vermiculite | 2.5 |
Web Resources
- Malawi Investment and Trade Center
- Malawi Ministry of Mines
- Mining in Malawi trade review
- Malawi Extractives Industries Transparancy Initiative
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