Chilwa Minerals (ASX:CHW) has initiated the process for securing a mining development agreement (MDA) with the Government of Malawi for its namesake critical minerals project in southern Malawi.
The MDA will cover operating, ownership and fiscal terms for the development of the project.
As part of the MDA, Chilwa will upgrade a proportion of existing mineral resources to the higher confidence measured and indicated categories, sufficient to conduct mining optimisation and design.
The company says it will progress the MDA throughout 2025, with economic studies to reflect the new mineral resources, revised costs and the mineral assemblage information coming shortly.
Managing Director Cadell Buss says the agreement is crucial for the development of the project, providing the fiscal and regulatory certainty that financiers seek to assess the project’s debt funding capacity.
Cadell adds that Chilwa has the continued support of major shareholder Mota Engil (EGL:MOTA), which has operated in Malawi for decades.
“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,” he says.
Chilwa Minerals is an exploration company located in southern Malawi that owns 100% of mineral sands and rare earths at the Lake Chilwa precinct.
The company will be attending the RIU Sydney Resources Round-up being held from 6-8 May. Mining.com.au is an official media partner at this year’s event.
Write to Maddison Elliott at Mining.com.au
Images: Chilwa Minerals
