Chilwa Minerals (ASX:CHW) has initiated formal discussions with the Government of Malawi to establish a Mining Development Agreement (MDA) for its Chilwa critical minerals project. The proposed agreement will outline key aspects of the project’s operation, including ownership structures, regulatory frameworks, and financial terms.
A central feature of the MDA process will involve reclassifying part of the project’s existing mineral resources into higher-confidence categories. This upgrade is essential for carrying out detailed mine design and economic optimisation.
The company plans to progress the agreement throughout 2025, supported by updated economic assessments that will incorporate revised cost estimates, new mineral data, and refined resource figures. Chilwa Minerals’ Managing Director, Cadell Buss, noted that securing the MDA is vital to providing the financial clarity investors and lenders need to evaluate the project’s potential for debt financing.
Buss also acknowledged the backing of major shareholder Mota Engil (EGL:MOTA), a firm with extensive experience operating in Malawi, describing their support as a key asset in the project’s advancement.
Chilwa Minerals, which fully owns the critical mineral assets located in the Lake Chilwa region of southern Malawi, is targeting the extraction of mineral sands and rare earth elements. The company reaffirmed its commitment to working closely with the Malawian government and local communities to ensure the project’s sustainability and mutual benefit.
