The Southeastern African country has secured $12 billion in mining and infrastructure investments from China. The deals, signed under Malawi’s Minister of Mining, Ken Zikhale Reeves Ng'oma, could elevate the landlocked country in the global commodity value chain.
The $12 billion package is divided into two transactions. The first is a $7 billion deal with China's Hunan Sunwalk Group to develop titanium mining and processing facilities in Salima, central Malawi. This largest-ever foreign investment includes commitments to technology transfer, local skills development and social infrastructure. Building the downstream mineral processing capacity is set to create thousands of jobs.
The second is a $5 billion agreement with Xidian International Stock Exchange, focused on establishing a Special Economic Zone (SEZ) in Chipoka, strategically located on the shores of Lake Malawi.
The SEZ will integrate mining, agri-industrial and infrastructure development with $1 billion worth of projects expected to launch in its first year. As a future logistics and processing hub, the SEZ will enable Malawi's role as a supplier of rare earths, titanium, graphite and uranium—minerals critical to clean energy technologies.
Despite a diverse mineral resource base, there are currently no significant operations, though several foreign operators are pursuing promising projects.
- Lindian Resources (OTCPK: LINIF) is advancing the Kangankunde Rare Earths Project, which is backed by over $120 million in proposed funding from Ecobank, the European Investment Bank, and the Gerald Group. The project is slated to become one of the largest rare earth facilities globally upon its operational commencement in 2026.
- Lotus Resources (OTCQX:LTSRF) has secured $38.5 million from South African banks for the Kayelekera Uranium Project, targeting first production by the third quarter of 2025. This restart of the mine, acquired from Paladin Energy in 2020, positions Malawi as a notable uranium producer.
- Sovereign Metals (OTCQX:SVMLF), in partnership with Rio Tinto, is fast-tracking the Kasiya Rutile-Graphite Project, the world's largest known rutile deposit and second-largest graphite reserve. The site is expected to yield 245,000 tons of rutile and 288,000 tons of graphite annually, generating up to $16.4 billion in lifetime revenues.
Still, Malawi faces structural economic challenges, with a GDP heavily reliant on agriculture and aid, and the mining sector contributing just 1% to the economy. However, projections suggest mineral exports could reach $30 billion between 2026 and 2040, potentially raising mining's share of GDP to 10% by 2030.
The strategic Chinese investment points to the broader geopolitical balancing act. As Western-backed initiatives—such as the Lobito Corridor modernization in Angola and Zambia and peacekeeping mineral agreements with the DR Congo—gain traction, China is shoring up influence in Malawi, countering Western leverage in the region.
Minister Ng'oma is expected to reveal further details at the Critical Minerals Roundtable during African Mining Week, taking place October 1–3 in Cape Town, South Africa.
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