(Ecofin Agency) - According to the World Bank, Malawi’s mining sector contributed just 0.7% to GDP and 3.5% to government revenue in 2023. Despite its modest role, the sector is poised for growth as several projects progress.

On March 24, Sovereign Metals, an Australian mining firm, announced plans to raise A$40 million (approximately US$25 million) through a private placement. The funds will support development costs for its Kasiya rutile-graphite project in Malawi. This shift not only bolsters the nation’s economic prospects but also positions it to expand its mining revenues. 

In 2023, mining contributed just 0.7% of Malawi’s GDP and 3.5% of national revenues, according to World Bank data—a marginal figure. However, projections suggest the sector could grow its GDP share to 10% by 2063.

Key projects are already driving this transformation. Sovereign Metals’ Kasiya Rutile-Graphite Project is expected to generate $16 billion over a 25-year lifespan, while Lindian Resources’ Kangankunde Rare Earths Project aims for production of nearly 686,000 tonnes of rare earth concentrate over 45 years, with operations slated to begin in early 2026.

Malawi is gearing up to restart uranium mining at Kayelekera, with Lotus Resources planning to resume operations in Q3 2025. The project aims to produce 19.3 million pounds of uranium over the next decade. This revival comes as global demand for strategic minerals like uranium and graphite surges, driven by the energy transition and the push for cleaner technologies.

Graphite, crucial for electric vehicle batteries, faces potential supply shortages. BMI projects that 97 new graphite mines will be required by 2035 to meet the global demand. Uranium is experiencing renewed interest as nuclear energy gains traction; at COP28, over 20 developed nations committed to tripling global nuclear capacity by 2050. 

Rare earths play a crucial role in wind turbine generator manufacturing. The World Bank projects that mining these minerals could be a significant economic driver for Malawi, potentially generating $29.76 billion in cumulative operating revenues by 2040.

This article was initially published in French by Aurel Sèdjro Houenou (intern)

Edited in English by Ange Jason Quenum