Mkango Resources Ltd on Thursday said it received approval for its flagship Songwe Hill rare earths project in Malawi.

The Vancouver-based mineral exploration and development company said the Malawi Environment Protection Agency approved the environmental social health impact assessment for the project in the Phalombe district of the east African country.

Shares in Mkango Resources were up 14% to 16.80 pence each in London on Thursday morning.

It said the ESHIA approval is a significant milestone in the mining development agreement process, as it is a fundamental requirement towards being granted a mining licence.

Mkango Resources expects MDA approval to unlock significant stakeholder value and future investment for the development of ‘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 President Alexander Lemon.

‘We look forward to the mining licence and MDA being approved in the coming weeks. 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.’

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