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Business » Featured
Malawi caught in billion dollar minerals scandal
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By Gawo Sande, Nyasa Times |
November 10, 2011 · 10 Comments |
Malawi’s minerals continue to attract attention especially from Australian firms, but this time Lynas Corp seems to have lost an ownership contest of Kangankunde mines in Ntcheu following a High Court ruling.
Lynas Corp says the area has mineral deposits worth billions of US dollars and they have blamed Malawi government officials for mishandling the matter.
The court has ordered that rights to the rich rare earths deposit at Kangankunde be returned to Michael Saner, a South African geologist who controlled the exploration licence in 2003.
A news report from an Australian papers says the dispute threatens to turn into a full-blown political and constitutional crisis as Ministry of Mines is in contempt of the High Court as they maneuvered desperately to attract foreign investment and demonstrate stability and the rule of law.
Lynas workers drill for rare earths. Photo: The Australian
Michael Smith, an associate of Saner said legal proceedings were continuing to uphold the orders from the High Court.
“The Commissioner of Mines acted against the law of the country in not renewing the licence in 2003. The rights were awarded to Mr Patel (a middle-man) contrary to the law, and the court has ruled on this,” Smith said.
Saner’s claim before the High Court of Blantyre on January 2010 states damages of US$100 million plus sunk costs, legal costs and interest.
According to Lynas the mines hold a limitless business potential with their rare deposits and was ready to bag more points of success in its records.
On the other hand Lynas shareholders are counting on the blue sky from these African assets to fuel further gains in the stock price.
Lynas told the Australian Securities Exchange that that it had “recently received correspondence on behalf of a party claiming that, in 2003, the government of Malawi acted incorrectly in now reviewing that party’s exploration licence over the area of the KGK tenements”.
The company said it was “not party to any proceedings concerning this matter” and pledged to keep the market informed.
Lynas had been informed for some time of the gravity of the claims over KGK. The market should arguably have been informed much earlier.
The geologist Michael Saner claims he has lost time and money and continues to incur costs.
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Tags: Kangankunde mines, Lynas Corp, Michael Sane
10 Responses to “Malawi caught in billion dollar minerals scandal”
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No we shall only become rich when a poor man gets involved/benefited from the revenues/when direct benefits are orinated direct from these resources….u kno in our fellow countries for instance rare minerals is used in manufacturing of plsma tv,cellphones etc so it is the duty of the ministry to attract investors in that category to bring their manufacturing entities home so that when we mine those mineral some should be used their in Malawi not just exporting all in raw form…if we can correlate those assets(minerals)with FDI(foreign direct investments)thus when we shall sing that we are somewhere sample example Singapore how they became rich very remarkable
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Replyyes yes the indians this are the same people involved with land rover scandal with muluzi 7.6 million dollars APEX now ROYAL MOTORS
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Replyboma lagwizana ndi amwenye ku mines akudyera limodzi modzi ndi abdul a mahomed mwini wake wa ROYAL MOTORS his involved wit the minister ACB do something
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ReplyThe mineral sector has the potential to take us out of the current economic quagmire. It’s unfortunate that the responsible ministry is full of ignorant greedy cats who negotiate contracts for their own personal and partisan interests; not national interests. Shame!!!
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ReplyMalawi has the potential of making it big and stop begging. Regardless of who owns the mine, let it be operational and avoid unnecessary court battles if we’re to strive!
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ReplyYa we need this development this property must be handed to a south african not the westeners those westeners r dog and robbers of african wealth, dont forget that they have killed more ppo bcoz of minerals in congo in burundi in angola ppo they lost there beloved ones through this things and dnt trust the west!!
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ReplyNdaona kuti amalawichuma chikutidutsa pamphuno pathu tikuona ndithu. Izi ndi zimene amuthela julius malema zimenezi.
Ndasiya kulemba pa nyasa chifukwa ndaona kuti tachulukanapo ndi ongotokota basi.
wolimba mtima mdziko lino lonse ndi jessie kabwila -kapasula basi.
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ReplySo…We are rich after all.
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ReplyIs Malawi benefiting from these minerals?
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ReplyDyera anthu andale. Why did Muluzi snatch the licence from Saner? Why did the Bingu administration let Lynas get the mineral rights when it knew the case was in court. Kaye ndiye ndi zimenezo. Madzi afika mnkhosi.
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