The Malawian government has signed a $7 billion Memorandum of Understanding (MoU) with Chinese industrial giant Hunan Sunwalk Technology Group, calling it a major breakthrough for the country’s struggling mining sector.
But in Salima District, where newly identified titanium deposits lie beneath the lakeshore plains, local enthusiasm is hard to find.
Many residents are asking a familiar question: will this deal finally benefit ordinary Malawians, or will it once again enrich foreign investors while locals are left behind?
The MoU, signed on June 16, 2025, at the China-Africa Economic and Trade Expo in Changsha, outlines Hunan Sunwalk’s plans to mine and process titanium in Salima. It also opens the door to other mining ventures across Malawi.
Government officials have described the agreement as a “transformative partnership,” but they have yet to share key details. In a country with a history of secretive and underwhelming mining deals, public scepticism is widespread.
Geologists first discovered titanium in Salima in the early 1980s through government-commissioned surveys. These focused on the lakeshore plains, where ilmenite, a black mineral containing iron and titanium, was found in beach sands and dunes.
Ilmenite is a major source of titanium dioxide, used in aerospace materials, medical implants, solar technology, and everyday products like paint and sunscreen.
Despite its potential, the resource remained untapped for decades. Weak institutions, inconsistent investor interest, and licensing irregularities stalled progress. Most mining efforts either disappeared without explanation or ended in vague, unproductive deals.
Today, global demand for titanium is rising, thanks to its strength, light weight, and resistance to corrosion, especially in defence, energy, and green technologies.
This renewed interest has made deposits like Salima’s more attractive and could position Malawi as a supplier of a critical mineral, if managed transparently and fairly.
Hunan Sunwalk, better known for telecom and infrastructure projects than mining, has entered the sector quietly through this MoU.
Though the company has been involved in some resource deals elsewhere in Africa, critics say it lacks the technical expertise needed for complex mining operations—a potential red flag.
“This MoU, unless managed with full transparency, risks repeating the same old mistakes,” warned a senior mining expert who requested anonymity. “We’ve seen little evidence of proper due diligence, and almost no sign of real community consultation.”
The expert’s concerns reflect Malawi’s past experiences.
From the Kayelekera uranium mine in Karonga, where Paladin Africa left behind tax disputes and environmental damage, to bauxite and limestone concessions marked by land compensation conflicts, Malawi’s mining sector has consistently failed to benefit its citizens.
Despite having valuable resources—including uranium, rare earth elements, and now titanium, mining contributes less than 1% to Malawi’s GDP. Analysts say laws are poorly enforced, exports are undervalued, licences are granted without transparency, and tax incentives are overly generous.
Minister of Mining Kenneth Zikhale Ng’oma insists that the Hunan Sunwalk deal followed legal procedures.
“The company brings capital, equipment, and technical expertise,” he said. “We conducted environmental and social impact assessments.”
Yet no such reports have been made public.
The size of the mining concession is still unknown, and local leaders say they were left out of consultations, despite Malawi’s Environmental Management Act of 2017 requiring community involvement in resource development.
Civil society groups are now calling for the immediate release of the MoU, full disclosure of Hunan Sunwalk’s ownership, and thorough parliamentary oversight before any mining licences are issued.
These concerns echo those raised by the Extractive Industries Transparency Initiative (EITI), which has repeatedly flagged irregularities in reported mining revenues and called for stronger oversight.
Hunan Sunwalk Group Co. Ltd., a private Chinese conglomerate based in Changsha, Hunan Province, was founded in the early 2000s.
Its core businesses include telecom infrastructure, real estate, and urban development, mainly within China. It became known for rolling out fibre-optic networks in over 80 Chinese cities.
In recent years, under China’s Belt and Road Initiative (BRI), Sunwalk has expanded into overseas projects, often using infrastructure-for-resource swaps, where the company builds roads or buildings in exchange for mining or energy rights.
The company has been involved in controversial deals in Zimbabwe and the Democratic Republic of Congo (DRC), where critics cited unclear financial terms and limited benefits for local communities.
Its shift into mining is relatively new and, according to analysts, not backed by substantial experience, especially in technically demanding fields like titanium extraction.
This lack of expertise raises serious concerns about Malawi’s ability to enforce environmental and social protections.
Hunan Sunwalk’s interest in titanium fits into China’s broader push to dominate global supply chains for critical minerals.
China already leads the world in titanium processing, controlling more than 50% of global output. Gaining access to new sources, such as those in Salima, would strengthen its position even further.
For Malawi, the stakes are high. This deal could mark a turning point for the country or become just another chapter in a long history of resource extraction without real national benefit.
Collins Mtika produced this story for the Centre for Investigative Journalism Malawi (CIJM), as part of the Centre’s aim to expose corruption, hold power accountable, and amplify marginalised voices. CIJM: ‘Uncovering the Truth. Empowering change’.
