Australian exploration firm Chilwa Minerals has announced the launch of development talks to establish the Mining Development Agreement (MDA) for the Malawi government and the Malawi government in southern Malawi.
The MDA is a legal agreement detailing the operation, ownership and financial terms of the project, as outlined in the Malawi Mine and Mineral Act of 2023.
Such agreements are common in Africa and help establish a reliable legal and fiscal environment for mining projects.
The MDA lays out the financial and operational frameworks needed to develop the project.
To proceed with the MDA process, Chilwa minerals are required to measure a significant portion of current mineral resources and upgrade to designated categories.
Chilwa minerals are underway in excavation operations in sediments in central region to update estimates of mineral resources and conduct economic research.
This step is essential for mining optimization and design. Subsequent economic research reflects recent changes in updated mineral resources, revised costs, and mineral community information.
The company is expected to make significant progress in MDA in 2025.
“We’ve been working hard to get the most out of our business,” said Cadell Buss, Managing Director at Chilwa. “The Mining Development Agreement provides the necessary framework for the development of the Chilwa Critical Mineral Project, providing financial and regulatory certainty for financial operators to assess the debt funds of the project.
“Chilwa has several important factors as the MDA process is launched. Firstly, in recent years, several other listed companies have gone through the process, providing a roadmap for both parties to successfully complete the process.
“Secondly, we are fortunate to have the continued support of Mota Engil, a company that has been operating in Malawi for decades and is respected at all levels.
“Finally, from the beginning, we have established strong relationships with the government and the local host community, and have committed to building a long-term value project for the Malawians.”
“Chilwa Minerals has begun negotiations with Malawi for the Critical Minerals Project” was originally created and published Mining Technologya brand owned by GlobalData.
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