Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said it has been approved by the Malawi Environmental Protection Agency for its Environmental Social Health Impact Assessment (ESHIA) of the Songwe Hill rare earths project, located in the country’s Phalombe district.
Approval of the ESHIA is a significant milestone in the approval process for a Mining Development Agreement (MDA), which is a requirement for securing a mining licence for the project, Mkango highlighted.
The company, in a statement, said it expects these milestones will help unlock significant stakeholder value and future investment for the development of what will be Sub-Saharan Africa's first large-scale, commercial rare earth mining and processing operation in Malawi.
"The approval of the ESHIA for the Songwe Hill rare earths project is a major achievement for Mkango and Malawi's first rare earth mining project,” said Mkango president Alexander Lemon in the statement.
“We would like to thank the Malawian government for their ongoing cooperation and support and the Malawi Environmental Protection Agency for their advice and support during the ESHIA engagement, review and approval process. We look forward to the Mining Licence and MDA being approved in the coming weeks.”
Lemon added: "The Malawi Ministry of Justice has appointed a London-based international law firm with mining expertise to carry out a final review of the MDA and we are hoping to shortly conclude an agreement that is a win-win for both the Nation of Malawi and all of Mkango's stakeholders."
Mkango shares rose some 11% in Thursday’s opening deals, changing hands at 16.48p each.