Malawi Financial Mirror

Comment On Rare Earth Mining in Balaka

For more than a decade a geologist, Michael Saner has held the rare earth mining to ransom.

 US$100-million from the Malawi Government for damages plus sunk costs, legal costs and interest. “ The matter dates back to 2000 when the ministry granted Saner the EPL for Kangankude Mine in Balaka. The EPL was issued on March 15, 2000, for an initial period of three years and it was renewable.

On November 25 2002, Saner submitted an application to renew his EPL of  Kangankunde Carbonatite located in Balaka District and in compliance with the Mines and Minerals Act, the application was submitted three months prior to the expiry date of the EPL but the ministry did not respond to Saner’s renewal application and no grounds were given.

The ministry only gave the reasons for non-renewal in May 2003 after inquiry and officers in the ministry told Saner that the EPL would be renewed but it was not.

However, the ministry issued the mining license to a close associate of Muluzi  Tony Patel, in May 2003 although Patel never held an EPL or engaged in mining. He was a furniture seller. . Three years later Patel sold the “rights” for US$4 million to Lynas Corporation Limited, an Australian publicly-listed company. Mr. Patel

In 2006, Saner obtained a court order which required that the EPL be renewed but it was not renewed, a development which made Saner unable to move to the exploitation phase which was the main objective of the EPL and in 2010, Saner obtained an injunction which prohibits the granting of a mineral license of Kangankunde to any other party other than him” (https://mwnation.com/court-awards-a-geologist-k69-5bn}/

Now we are informed that  ASX-listed Lindian Resources’ geologist Michael Saner has signed a consent order with the Malawi Ministry of Natural Resources and Environmental Affairs, bringing the company a step closer to acquiring up to 75% in the Kangankunde rare earth project, in Malawi.

This has huge implications for the rare earth industry. Given the previous experience, we insist on a transparent process. What exactly is the new agreement with Saner? Does this lay to rest his outrageous claim?