MINERAL POTENTIAL OF
MALAWI
OPPORTUNITIES FOR MINERAL INVESTMENT
GRAIN W.P. MALUNGA MIMM
P.O. BOX 566
BLANTYRE
MALAWI
JUNE 2001
TABLE OF CONTENTS
INTRODUCTION
3
1.0
BAUXITE
3
2.0
HIGH CALCIUM MARBLE
4
3.0
MONAZITE AND STRONTIANITE
5
4.0
TITANIUM
5
5.0
PHOSPHATE
6
6.0
PYROCHLORE
7.0
URANIUM
6
8.0
VERMICULITE
6
9.0
COAL
7
10.0
CLAY
7
11.0
GEMSTONES
8
12.0
GRAPHITE
8
13.0
GLASS SANDS
8
14.0
GEOCHEMICAL ANOMALIES
9
15.0
GEOPHYSICAL ANOMALIES
10
16.0
INCENTIVES FOR THE MINING SECTOR
11
17.0
KEY ORGANISATIONS
12
6
FIGURES
MINERAL RESOURCES OF MALAWI
INTERNATIONAL TRADE ROUTES
2
MINERAL POTENTIAL OF MALAWI
INTRODUCTION
Agriculture has been dominating the economy of the country employing about 80% of the labour force and
accounting for almost 90% of the export earnings. The uncertainty of the weather and recent drought have,
however, shown the risk of relying on agricultural output alone.
The Malawi Government is now convinced that our ability to diversify and turn around the economy lies in
mounting an aggressive promotional campaign to attract both local and international investors to establish a
viable mining industry by exploring and exploiting known mineral deposits.
To support this, Government established the necessary institutional set-up and an attractive legal framework that
defines the investor's rights and obligations. Security of tenure is guaranteed to give maximum security to the
investor. This is strengthened further through Malawi's membership in Multilateral Investment Guarantee
Agency (MIGA) and in International Centre for the Settlement of Investment Disputes (ICSID).
This document outlines the mineral potential of the country and the available incentives for the Mining Sector. It
will be noted that more information regarding the mining sector in Malawi and the available incentives can be
obtained from key organisations listed at the end of the document.
1.0
BAUXITE
The bauxite deposits on Mulanje mountain are at an elevation of between 1800 and 2000 metres. The deposits
are accessible through foot paths. The nearest rail is Luchenza which is some 30 kilometres from the deposits.
Luchenza is about 38 kilometres from Blantyre.
Work on two deposits, Lichenya and Linje, has estimated the existence of 28.8 million tonnes within an average
depth of 4.5 metres. Total reserves on the mountain are estimated to be in excess of 50 million tonnes.
The average analysis of the deposit is:Al2O3
Free quartz
43.3
13.3
Combined
silica
2.2
Fe2O3
TiO2
Kaolinite
LIO
14.2
1.8
<5.0
28.8
The bauxite is mainly a trihydrate gibbsite which lies over kaolinite and has free quartz and geothite as the main
contaminants.
Feasibility study executed by MIDCOR through a consultant, MET-CHEM Canada Inc., proposed a mining
output of 580, 000 tonnes of bauxite per annum to produce 200,000 tonnes of alumina to meet an annual
production of 100,000 tonnes of aluminium.
The bauxite will be beneficiated to reduce the quartz content before processing it using the Bayer process. The
Alcan P-180 cell will be used for aluminium smelting. The study was conducted in such a manner as to allow the
development of Mulanje bauxite in phases of bauxite mining (US$ 25.6 million), alumina (US$ 205.5 million)
and aluminium (591 million). This means that the total capital costs for the whole project will be in the region of
US$ 822 million. Power exists locally for mining and production of alumina while the production of aluminium
will currently depend on the availability of power from Cabora Bassa which will be in the region of 15.3 kWh
per Kg of aluminium produced.
3
A market for alumina will be Richards Bay in South Africa. The world demand for aluminium consumption has
been projected to grow at a rate of 2% per annum. Should aluminium be produced it will find its way to the
world market through London Metal Exchange.
Increased interests on the deposit continue to be expressed.
2.0
HIGH CALCIUM MARBLE
There exist a high calcium marble deposit on Malowa hill east of Golomoti in the Bwanje Valley. The marble
lies on basement gneiss and granulitic rocks and has been intruded by quartz feldspathic rocks having a granitic
affinity.
A total of 4.08 million tonnes have been proved for the manufacture of chemical grade lime. The reserve
contains an average grade of 52.% CaO, 0.99% MgO and 5.22% SiO2. A probable reserve of 14.85 million
tonnes containing 46.83% CaO and 1.36 MgO has been delineated for the calcitic marble unit.
There exist also dolomitic marble amounting to a proved reserve of 3.7 million tonnes. This unit contains an
average of 36.21% CaO, 12.99% MgO, and 8.6% SiO2. A probable reserve of 17.53 million tonnes has been
estimated to contain 36.61% CaO, 7.14% MgO. This tonnage also includes impure marbles.
The overall resource estimate for Malowa marble is therefore 22.38 million tonnes with a combined proved
reserve of 7.78 million tonnes.
The Bwanje Valley limestone project aims at establishing lime works at Malowa. The main products to be
manufactured will be high quality hydrated lime and pulverised limestone.
A plant has been designed to produce 50 tonnes per day of quick lime (equivalent to 60 tonnes per day of
hydrated lime). This capacity has been based from the current demand of lime and should any increase in
demand be noticed then a duplicate unit will be installed.
About 20 tonnes of pulverised limestone will be produced per day while 30 tonnes of agriculture limestone will
be produced per day.
Before calcination, the run of mine will go through a primary crusher with a capacity of 40 tonnes per hour in
order to reduce it to less than 75 mm. After primary crushing the material will go through a secondary crushing
unit to produce feed size for the kiln and agriculture limestone product,
Malowa marble is fine to coarse grained and decrepitates on calcination. This marble characteristic can be
accommodated in a fluid bed kiln (Fluo-Solids) kiln being manufactured by Dorr-Oliver. This type of kiln is
already operational on a similar deposit in the United States.
After calcination, the quick lime will be hydrated to produce hydrated lime having 85% passing through a 200
mesh (75 micron)
This project will utilise coal as fuel for the kiln.
The capital cost estimate for the whole project is US$ 10.8 million. This includes capital costs for mine,
crushing, calcination and hydration.
There is a local demand for lime of 15,000 tonnes per annum especially in the agro-processing industries
particularly in sugar, tobacco, fertiliser and chemical manufacture. There is also an export market potential for
Zimbabwe, Mozambique and South Africa.
4
3.0
MONAZITE AND STRONTIANITE
A high cerium and low thorium pistachio-green monazite and strontianite carbonatite exists on Kangankunde hill
along Lilongwe -Blantyre (Zalewa) road in Southern Malawi. The mineral occurs in association with florencite,
bastnaesite, manganese oxides, sphalerite, barite and apatite. The ore body consists of spotted dark and light
coloured carbonatite and dark brown to black porous ankeritic carbonatite.
Latest prospecting results by BRGM of France on the grade and amenability to ore processing showed that there
are 2 million tonnes of possible reserves at 6.6% monazite and 546,000 tonnes of minable reserves averaging
10.3% monazite. Drill indicated reserves amount to 11 million tonnes of ore having 2.0% rare earth oxides and
8% strontianite
Pilot processing tests by gravity and magnetic separation gave an 81% monazite concentrate with a recovery of
80%.
A feasibility study is required to establish technical and economic viability of the project.
COMPOSITION OF KANGANKUNDE MONAZITE IN RELATION TO WEST AUSTRALIAN SANDS
AND TITANIUM
REO
KANGANKUNDE
MONAZITES
30.41
50.93
4.5
13.21
1.43
0.17
0.49
0.16
0.06
0.03
0.10
66.70
La2O3
Ce2O3
Pr6O11
Nd2O3
Sm2O3
Eu2O3
Gd2O3
Tb4O7
Dy2O3
Ho2O3
Tm2O3
Er2O3
Yb2O3
Lu2O3
Y2O3
TOTAL
WEST AUSTRALIAN
MONAZITES (SANDS)
24.59
45.50
5.02
16.53
2.52
0.03
1.76
0.95
0.05
0.05
0.45
0.12
0.02
2.38
59.78
Strontianite can be recovered as a by-product in the concentration of monazite. It has been established that the
ore bodies contain 10% to 70% of strontianite and that it extends beyond the limit of monazite mineralisation.
4.0
TITANIUM
Beach sands with high heavy mineral content exist over long stretches of the lake in Salima and along the eastern
lake shore. The sands contain ilmenite, rutile, monazite and zircon. A mining company carried out some work in
part of the area and delineated about 670,000 tones of heavy mineral concentrate. The delineated area can be
worked by a dredge.
Very large tonnage estimated to be in the region of 100 million tonnes exist as colluvial sand and gravel near a
rail line at Tengani. Heavy mineral content ranges from 3.5 to 35%. The rutile : ilmenite ratio in the heavy
mineral fractions ranges from 12:1 to 4:1. Recent exploration work by the Geological Survey Department
indicated 2.5 million tonnes of sand containing 3% ilmenite and 300,000 tonnes of sand containing 0.3% rutile.
5
5.0
PHOSPHATE
Carbonatite phosphate deposits occur at Thundulu in form of apatite carbonatite, apatite sovite and apatite
carbonatite.
Drill indicated reserves amount to 1.9 million tonnes within a depth of 50 metres. The rock contains between
15% and 20% P2O5 and is suitable for the manufacture of phosphatic fertiliser.
6.0
PYROCHLORE
The most promising niobium prospects in Malawi are at Ilomba hill, Chilwa Island and Thundulu. The
pyrochlore at Ilomba occurs in pyroxenite lenticles in aegerine foyaite associated with a syenitic ring complex.
Inferred reserves stand at 100 thousand tonnes at 3% Nb 2O5.
Pyrochlore rich carbonatite occurs at Chilwa Island. Reserves have been put at 375 thousand tonnes containing
0.95% Nb2O5. Geological reserves are believed to be substantial.
Thundulu carbonatite hosts reserves estimated at 900 thousand tonnes containing 0.37% Nb 2O5.
7.0
URANIUM
Uranium mineralisation occurs in Karroo sandstone at Kayerekera in the North Rukuru Basin. Detailed
evaluation has revealed some reserves estimated at 10 thousand tonnes at 0.17% uranium. Development of the
deposit will depend on behaviour of prices on the world market.
8.0
VERMICULITE
15 deposits were identified around Feremu in Mwanza. A pitting and drilling excercise delineated reserves
amounting to 2.5 million tonnes. The vermiculite forms a core surrounded by hydrobiotite and phlogopite. An
expansion ratio of greater than 10 was observed on vermiculite from Garafa, Phate, Matembe north and south,
Kapirikamodzi and Njiza.
6
9.0
COAL
There are five identified coal fields with estimated reserves of 20 million tonnes and about 750 million tonnes of
probable reserves. Exploration results have shown that :(i)
Ngana coal field hosts coal with an average of 21 % ash content and with a calorific value of
4799 KCal/Kg
(ii)
North Rukuru - Nthalire coal field has an average coal ash content of 28 % and a calorific
value of 5410 KCal/Kg
(iii)
Livingstonia coal field coal contains an average ash content of 14 % and a calorific value of
7226 KCal/Kg
(iv)
The coal in Lengwe coal field has an average ash content of 50 % with a calorific value of
4250 KCal/Kg and
(v)
Mwabvi coal field hosts coal with an average ash content of 40 % and a calorific value of
5030 KCal/Kg
All these coal fields have less than 8 % sulphur content. Estimated reserves show that there are :-
15 million tonnes of coal at Ngana in Karonga
2 million tonnes at (Mchenga), Livingstonia, in Rumphi and
4 million tonnes at Mwabvi in Nsanje
Vwaza and Chirumba basins are potential coal fields but no reconnaissance
drilling has been undertaken.
The main consumers of coal are in cement manufacturing, textile and soap making. There is more potential for
use of coal in the tea industry, tobacco industry and thermal power generation. There is also room for domestic
application through the use of coal briquettes.
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CLAY
1
Linthipe clay
This clay covers an area of 7.6 kilometres. The clay has a density of 1.86 t/m3 and an estimated reserve of 14.1
million tonnes. The clay is a weathering product of an anorthosite body. It has a higher firing shrinkage of 5-13
% and therefore requires addition of silica sand and feldspar fillers to a proportion of 25 % for each to reduce
the shrinkage to 1.8 %.
The clay has the following chemical composition:
SiO2
46.7 %
Al2O3
Fe2O3
33.8 %
CaO
1.1 %
MgO
0.26
K2O+Na2O
0.28
2.0 %
7
2
Bangwe East Clays
This resource is suitable for brick making. The area is between Bangwe and Nguludi mountains near Blantyre.
These soils cover about 40 km2. The soils are derived from weathering of the underlying perthite gneisses and
perthosites. He estimated that about 17,500 million bricks could be produced by traditional methods and about
26,500 million bricks could be made by mechanised brick plants. These bricks can be produced in those areas
that contain about 50 % silt and clay.
11.0
GEMSTONES
Precious and semi precious stones have being mined by small scale miners in 14 of Malawi's 24 districts. Among
these are aquamarine, amethyst and rhodolite. It is estimated that between 1,000 grams and 5,000 grams of fine
grade stones are being mined every month. The stones are mostly found in pegmatites. The main producing
districts are Mzimba, Rumphi, Chitipa, Ntcheu and Nsanje.
Ruby and sapphire are mainly found in Ntcheu, Mwanza and Nsanje. It is estimated that about 100 grams of fine
material are mined per month.
Small scale miners continue to seek financial and technical support through loans and joint venture
arrangements.
12.0
GRAPHITE
Central Malawi is enriched with graphite deposits. Recent exploration work revealed extensive deposits at
Katengeza and Chimutu. Detailed evaluation of the Katengeza graphite revealed the existence of an estimated
reserve 2.7 million tonnes of which 1.7 million was proved. The reserves average 5.83 flake graphite. A
technical partner is sought to develop the deposit.
Funds have been identified by a local company to carry out detailed work for Chimutu graphite.
13.0
GLASS SANDS
Substantial deposits of glass sands occur in dambos around Mchinji. Recoverable reserves in six dambos amount
to 1.6 million tonnes. Silica percentage for the sand varies from 96% to 99 % while the iron percentage varies
from 0.12% to 0.2%. The deposits are suitable for the manufacture of good quality glass.
The Lake Chiuta sand bar is estimated to have 25 million tonnes of glass sand containing 92.7% silica and
0.62% iron. Further beneficiation will improve the quality of the sand to make it suitable for manufacture of
plate and window glass and reasonably clear glass containers.
8
14.0
GEOCHEMICAL ANOMALIES
Regional geochemical drainage reconnaissance survey prior to 1973 showed several anomalies considered to be
worthy following up:1
copper (i)
(ii)
(iii)
(iv)
2
gold/base metals Geochemical anomalies for gold and base metals seem to be associated with
sulphide bearing schists and pyritc deposits. Other occurrences are associated with
sulphide bearing schists within greenstone belts that are enriched in molybdenum.
(i)
(ii)
(iii)
(iv)
(v)
(vi)
3
Lulwe area in Nsanje showed some anomaly of about 60 ppm in stream sediments
against twice the average background value. Highest values went up to 150 ppm.
High average values for copper over Chimaliro dome gneiss showed values ranging
up to 150 ppm with an average value of 62 ppm in area of about 204 square
kilometres.
A distinct anomalous sediment train occurs at Ndodo dambo, South of Lilongwe.
Values of up to 200 ppm extend nearly 2 kilometres. Background values in stream
sediments average 14 ppm. Molybdenum seems to have a positive correlation with
high values of copper. Molybdenum values of up to 10 ppm have been detected.
Kampini anomaly, within Madziainsa dambo, has up to 1500 ppm copper values in
soil. The outline of the anomaly extends nearly 3 kilometres north and north-east of
the dambo.
Some samples from Malingunde hill pyrite showed gold values of about 150 ppb.
These were associated with other high values of silver (1.25 g/t) and zinc (.125%).
Some gold was observed in pans at Ndodo dambo around Ndodo village South of
Lilongwe.
Exploration work at Nathenje showed some gold in two streams . High arsenic
values were encountered in soils while gold findings were related with pyritic
bearing gneiss and schist.
Alluvial gold was observed in the Dwangwa river and in its south bank tributaries.
Widespread traces of gold were also found in the central and south-west parts of the
area. Arsenic anomalies seem also to be slightly associated with most gold traces.
Kirk Range area: among notable targets here are Lisungwe gold targets which are
associated with history of placer gold mining and bed rock prospecting within the
Manondo zone. Here gold occurrences are associated with pyritized veins in
carbonatized schists affected by fracturing and faulting.
graphitic pyrites belts in Central Malawi are associated with extensive blankets of
gossan and give gravity and magnetic anomalies in areas with low shear zones.
Some elevated values of gold and zinc have been noted at Malingunde and
Khongoni.
Tin-molybdenum
(i)
Stream samples over an area of 19 square kilometres in the Nyika gave average
values of 6 ppm against a an average value of 3 ppm. Some values were as high as
15 ppm.
(ii)
Streams draining Kalabwe registered values of up to 40 ppm and 25 ppm for tin and
molybdenum respectively.
(iii)
At Mbale in Nsanje, in an area of about 3 square kilometres, stream sediments
registered molybdenum values averaging 10 ppm against a background of 2 ppm.
9
4
Nickel (i)
Values of up 6,000 ppm nickel in residual soil and 2000 ppm copper in bed rock
samples at Mpemba hill ultrabasic body were registered. The rock contains some
sulphides.
(ii)
Nickel values of up to 6000 ppm were registered in rock samples from one flank of
Chimimbe hill.
(iii)
Chipata hill registered nickel soil values of up to 1,750 ppm, against a background
value of 200 ppm, over a gabbro and copper values read 215 ppm.
(iii)
High nickel values of up to 250 ppm were registered at Chimwale in Kasungu in
stream sediments. This was against a background value of 23 ppm.
5
Niobium and Uranium
(i)
Streams draining Chimaliro hill in Rumphi registered niobium values of up 3000
ppm. Radiometric counts were four times higher than normal. Uranium pyrochlore
mineralisation is suspected.
(ii)
15.0
High niobium values of up to 3,000 ppm were registered at Nkhonjera, Rumphi, in
pan concentrates obtained from streams draining the southern margin of a nepheline
gneiss intrusive.
GEOPHYSICAL ANOMALIES
Malawi offers attractive targets for ground follow up on various mineral exploration targets detected by the
1985 UNDP sponsored Airborne Geophysical Survey. Targets were carefully identified using integration of
regional geological and geochemical data.
1
Rare earths
Chilobwe structure: strong magnetic susceptibility and strong uranium response straddling a major north-south
trending fault cutting across nepheline syenite has been reported.
Chinduzi radio active zone shows a uranium anomaly associated with pegmatite dikes along the contacts with
nepheline syenites and charnokitic gneiss.
2
Kimberlite/diamonds
Geophysical modelling of Mwanza area indicate two late stage ultramafic intrusives covered with recent
quaternary and alluvial sediments over a thick sequence of Karroo sedimentary rocks. Previous diamond
prospecting revealed the existence of kimberlite minerals and two minute diamonds in concentrate taken from
the Shire River within the area.
The West Chilumba - Livinstonia area shows several individual magnetic anomalies correlating with mapped
faults. These buried intrusives have been interpreted as possible kimberlites. Recent discovery of kimberlite
pipes near Mlowe by Geological Survey increases the prospects for existence of numerous pipes some of which
may be diamondiferous as is the case across Lake Malawi in Tanzania.
3
Chromium/nickel/platinum
Among several other ultrabasic bodies identified through the geophysical survey, four first priority targets were
recommended for ground follow-up programmes using magnetics, spectrometry, gravity, I.P and
electromagnetics. These targets are Lisungwe Fault Zone Ultrabasic bodies, Chimbalanga Ultrabasic Body, Bua
Metagabbros and Chimimbe Ultrabasic. Strong magnetic anomalies have indicated much larger intrusions than
previously mapped.
10
4
Hydrocarbons (Oil and gas)
Previous seismic and airborne magnetic surveys made over Lake Malawi by Duke University (1981, 1985) and
Shell Exploration B.V. (1981) revealed thick sequences of up to 3 kilometres of potentially oil bearing rocks.
The strata was found to be present in the northern part of the lake in very deep waters between Chitimba and
Chilumba and in shallower waters in the southern part of Lake Malawi around Nkhota-Kota and Salima
extending into Mozambique waters.
16.0
INCENTIVES FOR THE MINING SECTOR
The Government has an open economy and plays a role of facilitating rather than regulating private investment.
Malawi's investment climate is supported by:
1.
2.
3.
A stable political and economic environment
Minimal requirements for registration of companies
A low cost unskilled and semi-skilled mining labour with years of experience in South Africa, Zimbabwe
and Zambia.
Modern telecommunications
Preferential access to regional and oversees markets
Daily international flight connections
4.
5.
6.
Malawi Investment Promotion Agency (MIPA) has laid down the following attractive investment incentives
which the Government can offer for mining projects:
1.
Pioneer Status: The company will be granted partial exemption from payment of income tax. There will
be payment of 20% corporate tax and a tax exemption of 10 years from the start of production. The
Government will also grant a zero rated corporate tax for a period up to 20 years for strategic projects
that will require heavy investment or high technology and large labour force. These will be projects
considered to generate extensive linkages and foreign exchange.
2
Investment Tax Allowance: A tax allowance of 40% will be granted in respect of qualifying capital
expenditure incurred.
3
Industrial Building Allowance: The companies eligible for this allowance will be those with buildings
that will be used as warehouses. An initial allowance of 10% and annual allowances of 5% will be
granted.
4
150% deduction for expenses incurred on approved training.
5
Exemption from import duty on capital equipment, building materials, initial equipment, fixtures and
fittings and direct raw materials and parts. This will include motor vehicles of at least 10 tonnes and
above. All imported materials which are available or manufactured locally will not benefit this incentive.
Corporate tax has been reduced from 38% to 30%.
Tax on dividends has been removed
6
7
11
17.0
KEY ORGANISATIONS.
1.
THE DIRECTOR OF MINES
DEPARTMENT OF MINES
P.O. BOX 251
LILONGWE
TEL: (265) 722 194
2.
THE DIRECTOR OF GEOLOGICAL SURVEY
GEOLOGICAL SURVEY DEPARTMENT
P.O. BOX 27
ZOMBA
TEL: (265) 522 166
3.
FAX: (265) 522 716
THE GENERAL MANAGER
MALAWI INVESTMENT PROMOTION AGENCY
PRIVATE BAG 302
LILONGWE 3
TEL: (265) 780 800
4.
FAX: (265) 722 772
FAX: (265) 781 781
THE GENERAL MANAGER
MALAWI DEVELOPMENT CORPORATION
P.O. BOX 566
BLANTYRE
TEL: (265) 620 182
FAX: (265) 623 085
12