By Kingsley Jassi:
Malawi Investment and Trade Centre (MITC) has started the hunt for financiers in a new rutile project inside Dzalanyama Forest, promising Malawi’s stronger position as a key global resource.
The Dzalanyama reserves, which are on the side of Mchinji District, are estimated at 1 billion tonnes, becoming the second largest reserve after Kasiya.
It will be pursued under the recently established Malawi Mining and Investment Corporation Limited (Mamico) and potential private partners.
In a call for investors, MITC Chief Executive Officer Kruger Phiri alerts companies within and outside Malawi to partner government in the project preparatory works to define and develop the project, which is said to have shown significant economic potential.
“Through Malawi Mining and Investment Limited, the government has confirmed an additional one billion tonnes of rutile deposits, targeting $300 million in investment. The project mirrors Kasiya’s structure and promises EBITDA of approximately $320 million annually with over 100 percent return on investment and pay bank period of under one year,” Phiri said in the statement.
It further said this project seeks partners to complete feasibility studies, construct EPC operations and establish beneficiation facilities, with joint ventures offered under investor-favourable terms typically at 65:35.
MITC
Mamico Chief Executive Officer Leonard Kalindekafe confirmed that the company was working with MITC on a number of projects, including Dzalanyama rutile mining.
“We are working on this project with MITC and there are other projects as well,” Kalindekafe said.
This project follows the Kasiya rutile mine, the world’s largest proven reserves estimated at 1.8 billion tonnes.
According to MITC, the Kasiya project has already secured 35 percent of funding —including major investment from Rio Tinto and a public share issue worth $225 million.
There have been concerns on low local participation in Malawi’s booming mining sector despite huge potential in the growing financial market to provide capital for mining ventures.
Meanwhile, another Australian company, Chilwa Minerals, has announced the discovery of over 64 million high grade heavy mineral sands along Lake Chilwa, where exploration works are ongoing.
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