By Durell Namasani
NGX Limited is encountering significant hurdles in its search for a buyer for graphite from its Malingunde project in Malawi. The company has approached markets including China but has yet to secure an offtake agreement.
While the project’s graphite is a high-grade 97% carbon product, with spherical graphite commanding prices around $4,000 per ton, the company cites fluctuating market prices as a major impediment to finalizing a deal.
Further complicating the project’s progress are environmental and regulatory concerns. The Lilongwe Water Board has raised objections based on the project’s Environmental Impact Assessment, citing the mine’s proximity to critical water sources for the capital city. Simultaneously, the Malawi Mining Regulatory Authority has queried the ownership status of existing retention licenses, stating that confusing information requires clarification.
In response to these challenges, Minister of Mining Dr. Kenneth Zikhale Ng’oma has formally requested a detailed status report from NGX Limited CEO Peter Fox within 14 days. The report must outline the problems and propose concrete solutions.
NGX Limited has stated its commitment to overcoming these obstacles. The company plans to conduct a thorough market analysis to identify opportunities, address the water board’s environmental concerns with mitigation plans, and resolve the license ownership issues to ensure regulatory compliance.
CEO Peter Fox assured the minister that the company is prepared to advance the project and capitalize on the growing global demand for graphite once these bottlenecks are cleared.
