Akatswiri Mineral Resources' $820M aluminium project a game changer for Malawi's economy

Akatswiri Mineral Resources is optimistic about its $820 million aluminium production project, which can potentially transform Malawi's industrial landscape. The company has completed a feasibility study for mining bauxite deposits in the Mulanje Mountain region. It plans to refine the ore into alumina and smelt it into aluminium—a vital metal used across numerous global industries.

Image Source - Linkedin (Hilton Banda)

The bauxite deposits at the Linje and Lichenya sites on Mulanje Mountain are projected to deliver substantial yields, with an annual mining target of 580,000 metric tonnes. This output is expected to be processed into 100,000 metric tonnes of aluminium each year. With current market prices at $2,600 per tonne, the project could generate approximately $260 million in annual revenue, offering a significant economic boost for Malawi.

The Mulanje Massif, or Mount Mulanje, is a prominent inselberg located in southern Malawi. This landlocked country in south eastern Africa is characterized by its striking landscapes, with highlands divided by the Great Rift Valley and the vast expanse of Lake Malawi.

Challenges to witness

Given the energy-intensive nature of aluminium smelting, the company recognises that the project faces notable challenges, including the requirement for substantial capital investment and a dependable power supply. Banda emphasised the critical need to conduct an Environmental and Social Impact Assessment (ESIA) as a key prerequisite before advancing the project. According to the feasibility study, the bauxite deposits lie at depths of 10 meters at Linje and 15 meters at Lichenya, with an average thickness ranging from 4 to 5 meters.

Mining experts are encouraging the government to partner with the private sector to advance strategic initiatives like the Mulanje Bauxite project. Grain Malunga, a mining policy expert, described the project as "strategically important" for Malawi, citing its potential to boost the economy through job creation, foreign exchange earnings, and industrial growth.

Hilton Banda, Chairperson of Akatswiri Mineral Resources Group, said, "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."

Akatswiri Mineral's optimistic approach

Economist Lesley Mkandawire shared similar views, suggesting that the government consider sovereign guarantees and seek funding from multilateral and bilateral partners to support large-scale industrial ventures such as the Mulanje aluminium project. Although Akatswiri Mineral Resources remains optimistic about the project's prospects, it is still awaiting feedback from the Ministry of Mining and the Malawi Mining Authority regarding regulatory and policy support.

The global aluminium industry is expanding rapidly, and Malawi stands to benefit from this growth if the Mulanje Bauxite project proves successful. The initiative could reduce Malawi's reliance on imports by producing high-quality aluminium locally while advancing the country's broader industrialisation objectives.

Key next steps for the project include securing financing, addressing environmental sustainability, and overcoming logistical challenges. If successfully implemented, the Mulanje Bauxite project has the potential to significantly strengthen Malawi's economy and position the nation as an important player in the global aluminium market.