‘We are not here to scare investors’: Govt clears Australian mining firm Lindian and warns against illegal mine suspensions

Australian firm Lindian Resources, which operates the Kangankunde rare earths mine in Balaka, has been cleared of any wrongdoing by Mining Minister Thoko Tembo during a parliamentary debate on Friday, in a significant boost for the controversial project.

The clearance came as Minister of Justice and Constitutional Affairs Charles Mhango mounted a robust defence of Malawi’s mining investment framework, insisting that government decisions affecting investors must remain firmly anchored in the Constitution and existing law.

Speaking in Parliament as MPs debated growing concerns over the management of the country’s mineral resources, Mhango stressed that the state carried a dual responsibility – protecting the interests of ordinary Malawians while simultaneously upholding the rights and legal obligations owed to investors operating within Malawian law.

In a pointed rebuke to critics, the minister directly challenged calls from some quarters to suspend certain mining activities, demanding they identify the precise legal basis on which such a suspension could be justified.

Mhango issued a stark warning that any suspension carried out outside the bounds of the law risked exposing government to costly lawsuits and potentially crippling compensation claims from aggrieved investors – a warning that appeared aimed squarely at those pushing for tougher action against mining firms.

Turning specifically to rare earth mineral projects and other major developments, Mhango sought to reassure Parliament that licensing, ownership transfers and investment processes would continue to be handled strictly in accordance with legal requirements, rather than bowing to political pressure.

He was emphatic that Malawi remained firmly open for business, insisting government was committed to fostering a stable and predictable investment climate capable of attracting further international capital.

‘We are not here to scare investors,’ Mhango told MPs. ‘We are here to provide a conducive environment for investors.’

The remarks come as Malawi seeks to significantly expand its mineral sector, with rare earth elements – used in everything from electric vehicles to renewable energy technologies – increasingly attracting strong interest from international investors eyeing the country’s untapped mineral wealth.

The clearance of Lindian Resources follows scrutiny from the Parliamentary Committee on Natural Resources, Energy and Climate Change, which had earlier raised concerns over blasting activities, stockpiled ore and the export of mineral samples from the Kangankunde site – concerns Tembo has previously insisted were unfounded, telling Parliament that materials exported from the project had been properly approved for testing and laboratory analysis in line with regulatory requirements.