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Hi Bonker & others
I know a lot more about Malawi now, having read the last corporate presentation and been following the debate around the potential granting of the MDA. I’m reasonably confident it will be signed at some point, usual negotiation bluster. When the balance of win/win for both parties is reached it’s green for go. Sounds a great project, I’m in for the ride.
GLA
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The mine that we do have and will be commercial v soon :)))
It wasn't from the Mining Ministry it was from Share Talk... who linked to the article from Malawi and folk here need to realise the article is written by a Malawian for primarily Malawians...
Lotus Resources sp seems to like the news that their MDA looks to be incoming...
The tweet (posted earlier by suepud1) from the Malawi ministry of mining stating that they expect to sign the MDA
with Mkango by December has since been deleted.
Let's hope that's not a bad sign.
I wouldn't worry too much about him. Seems to be a bit of a peripheral figure who just likes making a lot of noise. The main players seem more sensible.
If we take that article at face value (and no reason not to, it would seem), then this guy should have already been booted out.
Is there not a mechanism to do so before 2025?
If he is typical of their politicians, then that country is indeed an univestable basket case, and we are wasting our time.
And also our money, in the form of IMF hand outs, although we cannot control that, unfortunately.
Well, if we do not get the MDA, it will serve me right for not trusting my knowledge of business in that part of the world.
I wanted to give Malawi the benefit of the doubt, but it rarely pays to do so.
I guess I need to do some thinking. If it was not for the Hypromag stuff, I would definitely be gone by now.
Here's an article about him entitled 'Greed Corrupts'.... https://times.mw/greed-corrupts/
The person who said that is Werani Chilenga. They spelt his name wrong in the article. Always seems to be shouting his mouth off about something. Appears to be regarded as a bit of a joke figure even within Malawi. Wasn't it him who was calling MKA 'middlemen' a little while ago? I think he just likes grandstanding for his domestic image, but doesn't really seem to understand that businesses have to make a profit.
Crumbs, again I thank you for posting the article, but perhaps you should give it another read after removing your rose coloured glasses. "...for Mkango, it is not giving us any hope at all..." "So what Mkango is demanding is totally and completely outside the Mines and Minerals Act..." If that is where we stand today then how do we get to a signed deal by the end of the year????
Having finally got a little peace and quiet, and away from distractions (and therefore hopefully less likely to make another brainless post!)....I really am struggling to find evidence in that article to suggest that they are bending.
I appreciate that the politics seems somewhat complicated/conflicted.
IMO, it does not paint a particularly positive impression of the nation, when WC seems to pour scorn on the idea of their Parliament getting to ratify MDA's, among other things.
To be blunt, it is the kind of impression that leads to a lot of Western outfits avoiding Africa like the plague, full stop.
There are so many historically negative commercial examples across that continent, which leads to the 'risk premium' of doing business in Africa that exists today.
Even though no corporate would speak openly of it. And which is such a shame, in many ways.
Perhaps that explains the corporate tax 'demands' that we have allegedly made in this instance. Along with other requests that do not currently exist within Malawi law.
Anyway, perhaps adopting the new laws we allegedly asked for would actually be in the interests of Malawi to do?
Both in terms of giving the impression of a country that is now commercially mature, and also therefore a safe investment for western commerce?
Either way, an update from the BOD really needs to be forthcoming soon IMO. Even if only to correct those allegations, if they have been misunderstood by WC, or to explain them, if he has reported them accurately.
A disaster scenario would have been Malawian Government has no intention of issuing an MDA ....now that's not the case is it infact they are bending...that whole taking it to parliament would have been a disaster.....averted.... don't forget the other assets on Malawi
Author of article tells me MDAs will be signed... anyways I agree we've heard that before....
I will write to Lemon see what he might share but personally seeing no disaster and will carry on with my nibbles... commercial HyproMag v soon plus who knows what else...
I'm not getting the disaster angle🤷🏻
I mean it does read as there are some bridges left to cross which may make December an ambitious target but the Malawian government is all for building those bridges to a happy conclusion for all
There is no possible way to put a positive spin on the quotes in that article. if they are accurate it isa disaster, plain and simple. with this article out in the public domain our ceo must make a statement. I mean really, come on man.
I thought we had spent approx $25M to get to this stage.
Talk of walking away without a MDA is rubbish.
Get the thing signed and then let the US govt and China have a bidding war for it!!
My apologies, flundra. It was I who entirely misunderstood your comment.
Not enough sleep and not enough coffee, clearly :)
Although GLR makes a strong point: we have heard all this before, over and over again and like him, my take on that article differs from yours.
But I am sure we all hope that your more optimistic take proves to be the correct one. GLA.
The Important part comes from the Ministry'Chilima said: “On October 6, 2023, the Government held a meeting with Mkango which agreed that the decision to take the MDA to parliament was receded and that the Government and the company will provide appropriate alternative legal provisions in the MDA.”
“We also agreed that the Government will look at all the related issues requested by Mkango Resources and select those that the law provides for an option to exempt or reduce and that we will communicate on the final position.”
“We also agreed that all the legal matters will be assessed by the office of Solicitor General (SG) which will then provide guidance and recommendations; and once all the issues are agreed upon, the MDA will undergo final scrutiny.”
They are listening to Mkango do not expect Mkangos MDA to be the same as Lotus's both have diffrent needs etc..... Lindian now want to negotiate their arrangement and Soverign will be next and my god does Malawi love that Rutile project but they all will have to worn for the investors or they will have no mining industry ...
Lets hope we do, but that article suggests both sides are WAY off
They also said the MDA would be concluded by June 2022, Dec 2022, January 2023, MKA said in Feb 23 'in the coming weeks' IMHO nobody knows when this is going to be signed within the state, company or else.
The NRCC has no power over the MDA and he even moans about that their chairperson even moans about that but the important part is even he said this:
“However, let us wait for these mining companies because we have agreed with the Attorney General, Mining Ministry and Ministry of Finance that they will conclude these MDAs by end of this year.”
Nothing undiplomatic about the language whatsover. Unless you are referring to the lack of discretion concerning the negotiation process by said politicians?
But I guess it is possible that some people who do not have experience of doing business in Africa may draw the wrong conclusions on the basis of mistaken impressions.
I had to look up NRCC, so your own comment speaks volumes.
No matter. I will be delighted if you turn out to be right about this. But you are entirely wrong in what you allude to in the first part of your post.
Seems to be NRCC with the negative undiplomatic language again. Odd. I don't know how important they are in the process. Might be a good cop/bad cop thing. The impression I get is that it's happening though and pretty soon. Lotus first.
Yeah, politicians gonna be politicians. Although Africa tends to take it to another level.
It is a big continent, but as far as the way business goes, well, a lot of synergies, you could easily conclude.
I think in time some of these countries are going to regret some of their decisions when it comes to who they choose to partner with. Geopolitically speaking in particular.
Naturally, it will be the poor masses who pay the price for the decisions of their politicians. It was ever thus.
Anyway, it continues to remain a waiting game here for now. GLA.
Monica is on side and that's what matters.... everything is negotiable there... including the % of the mine the country takes or doesn't....if Mkango sign it off it's because it's doable and not a write off FFS 🙂
Hard negotiating is fine. Results are all that matters though.
Failure is failure, however you try to dress it up.
So the BOD need to make sure they do not fail.
I agree, and I also think that Malawi have invested nothing in MKA yet want their cake to eat.
MDA is good to get over line but short term money is not the mine. It is not a good time to raise finance for large cap ex projects.
The magnet/recycle is the play here.
FWIW that politician has been playing that card for a while, reminds me of some UK equivilents all of which prefer to stifle progress for personal agenda