Malawi eyes multi-million dollar aluminum venture with Akatswiri Holdings Limited
Akatswiri Mineral Resources is optimistic about the potential of its $820 million aluminium production project, which could become a game-changer in Malawi’s industrialisation drive. The company has concluded a feasibility study for the mining of bauxite deposits in the Mulanje Mountain region, with plans to process the ore into alumina and ultimately smelt it into aluminium, a critical metal used in various industries worldwide.
The bauxite deposits, located at the Linje and Lichenya sites on Mulanje Mountain, are expected to yield a significant amount of material, with mining targets set at 580,000 metric tons of bauxite annually. This would be processed into 100,000 metric tons of aluminium each year. At current market prices of $2,600 per ton, this could generate approximately $260 million in annual revenue, providing a major boost to the country’s economy.
In a statement, Hilton Banda, Chairperson of Akatswiri Mineral Resources Group, emphasized the importance of the project for Malawi’s future. “This is a project with huge potential to change the industrial landscape of our country. Aluminium is a key industrial metal, and we currently import a lot of it. We would prefer to raise the necessary resources locally so that Malawians can fully own this transformative project,” Banda said.
However, the company acknowledged that the project faces significant challenges, including the need for substantial capital investment and a reliable power supply, as aluminium smelting is energy-intensive. Banda also highlighted the importance of conducting an Environmental and Social Impact Assessment (ESIA), a crucial step before moving forward.
The bauxite deposits are located at depths of 10 meters at Linje and 15 meters at Lichenya, with an average thickness of 4 to 5 meters, according to the feasibility study.
Mining experts are urging the government to collaborate with the private sector to support such strategic projects. Grain Malunga, a mining policy expert, called the Mulanje Bauxite project “strategically important” for Malawi, noting that it could provide economic benefits through job creation, foreign exchange earnings, and industrial development.
Lesley Mkandawire, an economist, echoed these sentiments, recommending that the government explore sovereign guarantees and seek financing from multilateral and bilateral partners to support large-scale industrial projects like the Mulanje aluminium venture.
While Akatswiri Mineral Resources remains confident about the project’s future, it is still awaiting responses from the Ministry of Mining and the Malawi Mining Authority regarding potential regulatory and policy support.
The aluminium industry is growing rapidly on the global stage, and Malawi could be poised to tap into this expansion if the Mulanje Bauxite project succeeds. The company’s plan to produce high-quality aluminium locally could reduce Malawi’s dependence on imports while also contributing to broader industrialisation goals.
As the project moves forward, the next steps will include securing financing, ensuring environmental sustainability, and navigating logistical challenges. If successful, the Mulanje Bauxite project could significantly boost Malawi’s economy, positioning the country as a key player in the global aluminium market.
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