Australian exploration company Chilwa Minerals has announced the start of development talks with the Malawian Government to establish a mining development agreement (MDA) for the Chilwa critical minerals project in southern Malawi.
The MDA, as outlined by the Malawi Mines and Minerals Act of 2023, is a legal contract that details the project’s operating, ownership and fiscal conditions.
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Such agreements are common in Africa and are instrumental in establishing a reliable legal and fiscal environment for mining projects.
The MDA will lay out the fiscal and operational framework necessary for the project’s development.
To advance the MDA process, Chilwa Minerals is required to upgrade a significant portion of the current mineral resources to the measured and indicated categories.
Chilwa Minerals is progressing with drilling operations in the Central Area deposits to update the mineral resource estimates and conduct economic studies.
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By GlobalDataThis step is crucial for mining optimisation and design. Subsequent economic studies will reflect the updated mineral resources, revised costs and recent changes in mineral assemblage information.
The company expects to make substantial progress on the MDA in 2025.
Chilwa managing director Cadell Buss said: “A mining development agreement provides the necessary framework for the development of the Chilwa critical minerals project. It provides the fiscal and regulatory certainty that financiers seek to assess the project’s debt funding capacity.
“Chilwa has several key factors in its favour as it commences the MDA process. Firstly, several other listed companies have gone through the process in recent years, providing a road map for both sides towards a successful completion.
“Secondly, we are fortunate to have the ongoing support of Mota Engil, a company that has been successfully operating in Malawi for decades and is well respected at all levels.
“Finally, right from the outset, we have committed to having a strong relationship with the government and our local host communities, ensuring that we build a long-term project of value for Malawians.”
