Entities linked to the Chinese state have quietly gained control of a strategically important rare-earth mineral project in Malawi without the knowledge of Malawian authorities, according to an investigation.
Ownership Changes and Lack of Oversight
The investigation centered on Mawei Mining Company Ltd., which holds a concession near Makanjira on the shores of Lake Malawi. This concession is believed to contain over 350 million tonnes of ore, including zircon, titanium and monazite – a key source of rare earth elements.
Since being granted the license in late 2017, work at the site has largely stalled. Community leaders report no tangible benefits have been realized, and promised development projects have not materialized.
Transfer of Control
Between 2023 and 2025, the ownership of Mawei’s parent company, Xinjin International Company Ltd., based in the British Virgin Islands, changed hands twice. The project is now under the majority control of two Chinese state-linked entities: Shandong Zhaojin Ruining Mining Industries Co. And Hainan International Resources.
Malawian law requires mining companies to notify and receive approval from the Ministry of Mining before any change in beneficial ownership to protect national assets. Although, Malawian officials have acknowledged they were unaware of these transactions.
Government Response and Concerns
Following a report by PIJ Malawi, the Lilongwe government has launched an investigation into the ownership changes and compliance with mining laws. The mining ministry has pledged a fact-finding exercise that could lead to fines or administrative action.
Civil society groups have warned that this situation reveals broader governance gaps within Malawi’s mining sector. Joy Chabwera, program manager at the Natural Resources Justice Network, stated, “This is mineral extraction without oversight.”
While the government views foreign investment, including Chinese mining engagement, as crucial for economic transformation, the promised benefits of Malawi’s mineral wealth remain unrealized for many in Makanjira.
Frequently Asked Questions
What minerals are believed to be present in the concession area?
The concession area is believed to contain more than 350 million tonnes of ore including zircon, titanium and monazite, a key source of rare earth elements.
When was the mining license originally granted?
The license was granted in late 2017.
What is the government’s response to the reported ownership changes?
The Lilongwe government has launched an official investigation into the ownership changes and compliance with mining laws, with the mining ministry pledging a fact-finding exercise.
As Malawi investigates these ownership changes, will it be able to balance its desire for foreign investment with the need to protect its national interests and ensure benefits reach local communities?
