News and insights

Omnia Strategy advises the Government of Malawi on Mine Development Agreement with Mkango Resources for the Songwe Hill Rare Earths Project.

14th August 2024

On 26 July 2024, the Government of Malawi and Mkango Resources Ltd (“Mkango”) announced the completion of the much-anticipated Mining Development Agreement (“MDA”) for the Songwe Hill Rare Earths Project (“Project”) set to be developed in Phalombe, Malawi.

The execution of the MDA marks another significant milestone for Malawi’s mining sector, coming on the same date as the completion of the Kayelekera uranium mine MDA. Both projects promise to deliver welcome benefits to Malawi and its people while securing supplies of rare earths, minerals and valuable metals critical for the green transition and energy security.

Omnia Strategy is privileged to have worked closely with Malawi’s Attorney General, Thabo Chakaka‑Nyirenda, to support the Government and advise on both the Mkango and Kayelekera MDAs.

Delivering Expert Advice at Zero Cost to Malawi’s Taxpayers and Treasury

Reflecting our law+ approach and commitment to providing elegant legal solutions in challenging environments, Omnia’s input was delivered at zero cost to Malawi while we also procured expert advice to Malawi from a specialist team of natural resources lawyers at Trinity International LLP, similarly at no cost to the State.

Highlights of the Songwe Hill MDA

• Economic Growth and Job Creation:

The Songwe Hill Project should significantly boost Malawi’s economy while offering employment opportunities and benefits in line with the Malawi 2063 Vision.

• Government Equity:

Malawi will hold a 10% non-diluting equity interest.

• Support for the Global Transition to Green Technology:

Songwe Hill should produce rare earth elements like neodymium, praseodymium, dysprosium, and terbium, critical for manufacturing the magnets used in electric vehicles, wind turbines, and modern electronic devices.

• International Investment:

The MDA once more signals Malawi’s openness to international investment, fostering a favourable business climate.

The Attorney General of Malawi, Thabo Chakaka-Nyirenda, who spearheaded the efforts from the Government of Malawi’s side, comments:

“The Mining Development Agreement for the Songwe Hill Rare Earths Project is an exciting moment for Malawi. The project will drive sustainable economic growth and generate employment while securing supplies of valuable rare earths which are central to modern green technologies. I am grateful to Omnia for its continuing support, insight and friendship to Malawi. We could not have done this without them”.

Omnia Strategy

The Omnia team was led by partner James Palmer and supported by Senior Associate Ricardo Gerhard  and Associate Kevin Gerenni.

To navigate the complexities of this landmark MDA, Omnia worked closely with an expert team from the London and Paris offices of Trinity International LLP, led by Conrad Marais, Lucien Bou Chaaya, and Anne-Gaëlle Cottenceau.

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