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Kanyika Niobium Project, Malawi


Description:

Australian company Globe Metals & Mining has been exploring the Kanyika region in Northern Malawi for niobium and tantalum mining since 2006 [1]. In 2011, the company started negotiating resettlement and compensation with the Kanyika community. After the company ensured the project was financially viable in 2012, inhabitants of the area were told they would soon be relocated, but repeated delays left them waiting in uncertainty for years [1].

The Kayika Niobium Project (KNP) is to be the first niobium mine in Africa, expected to generate 5.6 billion USD over its lifespan through the production of niobium pentoxide and tantalum pentoxide, which are primarily used in the steel industry [3]. These metals are mainly employed in the automotive and construction sectors. Novel applications in the production of electric vehicles, batteries, and gas and wind turbines make these rare metals of high demand for the green transition. 

The planned mine is expected to be a great source of government revenues through royalties and profit taxes [1]. The Malawian economy has long depended largely on tobacco cultivation, but since this industry is decreasing, the government is actively campaigning for mining to become the country’s new focus. Globe Metals & Mining’s chairman emphasizes the employment opportunities the mine would create, as well as the investments in education, health, sports, and infrastructure it would enable. 

The mining company hired Synergistics Environmental Services Ltd. to carry out an environmental impact assessment of the project [4]. According to this report, at the end of the mine’s 23-year lifespan (which is extendable to 38 years), the company is expected to leave behind an open pit 2.2 kilometers in length, 300 meters in width, and 130 meters in depth, which will be almost impossible to rehabilitate [5]. By that time, approximately 820 people would have been displaced from a large area area.

The Kanyika community had not been consulted before the arrival of the mining company in 2006 [6]. From the very start, the villagers have been reluctant over the relocation prospects. As the village chief asks: “What is the price of being uprooted like this? Who benefits from our dislocation?” [1]. Livelihood is their prime concern: will they have access to water, grazing lands, schools, and health centers once they are relocated? Over the years awaiting their relocation, it remained unclear how and with what amount the community would be compensated [1].  

In 2012, the mining company told the villagers to no longer renovate their homes and cultivate their lands because of the upcoming relocation. In the years that followed, houses were neglected, with approximately 45 of them even collapsing [7]. The river that flowed through the area and upon which the villagers’ livelihoods depended has dried up, and croplands have been damaged [2]. Soil fertility has deteriorated, rendering the croplands less suitable for agricultural production. 

Further, heritage sites, including graves that are of cultural and religious value to the community, have been affected [2]. The company dug large trenches in the ground, which have become breeding grounds for malaria-carrying mosquitos [8]. All in all, the area has aesthetically degraded and has become unsuitable for habitation [2]. The community is tormented by poverty and food insecurity.

The company in charge of the environmental impact assessment discovered high concentrations of uranium in surface waters [4]. Uranium contamination can lead to kidney failure and lung cancer after long-term exposure. Although the region is naturally rich in uranium, the possibility that mining activities had something to do with these extraordinary levels cannot be ruled out.

In August 2017, 243 Kanyika community members pressed charges against the Malawian government and Globe Metals & Mining over not having been resettled and compensated [6]. The claim specifies that the enduring presence of Globe Metals & Mining is responsible for poverty and food insecurity in the area. Throughout the legal struggle, the community was supported by the Southern Africa Litigation Centre (SALC). In November 2017, the government and the company filed a counterchallenge to the claim. After a failed mediation process, the villagers ceased persecution in 2019.

The mining company received its mining license in August 2021. After 15 years of living in suspense, the community has little trust they will reap the benefits of the project any time soon [1]. Chief Mabilabo expressed as early as 2016: “We had dreams that this area would transform, my people would greatly benefit from the minerals, but these are just dashed hopes” [9].

So far, 239 households have received advance payments of compensation of 270 USD per household [10]. For the affected community, however, the advance payments raise more questions than answers, since they are unsure what the money is meant to compensate and how much they can still expect [1]. The community has witnessed villages in the wider region suffering detrimental impacts from other mines that were brought to them under false promises by mining companies. 

Basic Data

Name of conflict:Kanyika Niobium Project, Malawi
Country:Malawi
State or province:Mzimba district
Location of conflict:Kanyika
Accuracy of locationHIGH (Local level)

Source of Conflict

Type of conflict. 1st level:Mineral Ores and Building Materials Extraction
Type of conflict. 2nd level:Mining exploration and/or ore extraction
Specific commodities:Rare metals
Niobium. Tantalum.

Project Details and Actors

Project details

- Estimated average production is 3,250 tonnes of niobium and 140 tonnes of tantalum per year [3].

- The government is expected to receive 86,500,000 USD in royalties and 225,000,000 USD in profit taxes over the project's estimated 23 year lifespan [1].

Level of Investment for the conflictive project250,000,000 USD [3]
Type of populationRural
Affected Population:1042 (members of the Kanyika community) [2]
Start of the conflict:01/01/2006
Company names or state enterprises:Globe Metals & Mining Africa Ltd. from Australia
Environmental justice organizations (and other supporters) and their websites, if available:- Southern Africa Litigation Centre: https://www.southernafricalitigationcentre.org
- Friends of Mabilabo (FOM)
- Catholic Commission for Justice and Peace (CCJP)

Conflict & Mobilization

IntensityLOW (some local organising)
Reaction stagePREVENTIVE resistance (precautionary phase)
Groups mobilizing:Indigenous groups or traditional communities
Neighbours/citizens/communities
Forms of mobilization:Lawsuits, court cases, judicial activism

Impacts

Environmental ImpactsVisible: Food insecurity (crop damage), Loss of landscape/aesthetic degradation
Potential: Air pollution, Waste overflow, Surface water pollution / Decreasing water (physico-chemical, biological) quality
Health ImpactsVisible: Malnutrition
Potential: Infectious diseases
Socio-economical ImpactsVisible: Displacement, Loss of livelihood, Land dispossession, Loss of landscape/sense of place
Potential: Loss of traditional knowledge/practices/cultures
Other socio-economic impactsDesecration of graves

Outcome

Project StatusPlanned (decision to go ahead eg EIA undertaken, etc)
Conflict outcome / response:Compensation
Court decision (undecided)
Do you consider this an environmental justice success? Was environmental justice served?:No
Briefly explain:The fact that the community's right to prior, free and informed consent was not respected points to injustice. Although the company has started (partly) compensating the Kanyika community for the years of damaged they have suffered so far, the villagers still have no clear prospects of when and where they will be resettled, nor of the final amount of compensation they can expect.

Sources & Materials

[1] Mpaka, C. (18/1/2023). Australian niobium mining project instills 16 years of anxiey for Malawi communities. Mongabay.
https://news.mongabay.com/2023/01/australian-niobium-mining-project-instills-16-years-of-anxiety-for-malawi-communities/

[2] Southern Africa Litigation Center. (18/9/2018). Malawi: Protecting rural women from negative impacts of the extractive industries.
https://www.southernafricalitigationcentre.org/2018/09/18/malawi-protecting-rural-women-from-negative-impacts-of-the-extractive-industries/

[3] Globe Metals & Mining. (n.d.). Kanyika Niobium Project.
https://www.globemm.com/kanyika-niobium-project

[4] The Nation. (3/8/2012). Killer water at Kanyika Mine.
https://mwnation.com/killer-water-at-kanyika-mine/

[5] Catholic Commission for Justice and Peace (CCJP). (December 2012). Mapping of Extractive companies in Malawi.
https://mininginmalawi.files.wordpress.com/2013/05/2013-08-jacobsen-mapping-of-extractive-companies-in-malawi-final-report-current.pdf

[6] Business & Human Rights Resource Centre. (28/8/2017). Globe Metals and Mining lawsuit (re lack of resettlement & compensation in Malawi).
https://www.business-humanrights.org/en/latest-news/globe-metals-and-mining-lawsuit-re-lack-of-resettlement-compensation-in-malawi/#:~:text=In%20August%202017%2C%20243%20members,operations%20for%20its%20niobium%20project

[7] Chauwa-Nyasa, A. (6/7/2015). New twist to Kanyika Global Metals mining: Friends of Mabilabo threatens to takeover. Nyasa Times.
https://www.nyasatimes.com/new-twist-to-kanyika-global-metals-mining-friends-of-mabilabo-threatens-to-takeover/

[8] Kibugu, J. & Mabenge, J. (23/4/2018). Kayika community mobilises against corporate harm in Malawi: Taming “the greedy Elephant”. Business & Human Rights Resource Center.
https://www.business-humanrights.org/pt/blog/kanyika-community-mobilises-against-corporate-harm-in-malawi-taming-the-greedy-elephant/

[9] Khamula, O. (13/2/2016). CCJP hits at Malawi govt, miners over niobium mining. Nyasa Times.
https://www.nyasatimes.com/ccjp-hits-at-malawi-govt-miners-over-niobium-mining/

[10] Globe Metals & Mining Ltd. (31/1/2022). Kanyika Niobium Project uptdate: Globe advances community payments to Project Affected Persons. Listcorp.
https://www.listcorp.com/asx/gbe/globe-metals-and-mining-limited/news/kanyika-advance-payment-to-project-affected-persons-2662959.html

Meta information

Contributor:Layla van der Donk
Last update05/10/2023
Conflict ID:6426

Images

 

Kanyika people demonstrate against Globe Metals & Mining (2016)

https://www.nyasatimes.com/kanyika-and-globe-metals-compensation-case-mediation-starts-on-good-note/

Neglected houses in Kanyika.

https://www.southernafricalitigationcentre.org/2018/09/18/malawi-protecting-rural-women-from-negative-impacts-of-the-extractive-industries/