Resources firm Springstone, a joint venture between Canada’s Gold Canyon Resources and Japan Oil, Gas & Metals National Corporation (Jogmec), has suspended its rare earths exploration project in the Mulanje Mountain area, in southern Malawi, as a result of legal wrangling with the surrounding community.

The community, led by the local Member of Parliament, Peter Nowa, obtained a court injunction restraining the firm from continuing with the explor- ation programme, the results of which have been encouraging, reportedly owing to concerns that the project would affect tourism in the area.

Mulanje Mountain is a well- known tourist destination in Africa because of its rare vegetation and its steep cliffs support hiking activities.

“Our stance that [exploration] activities [must stop] emanates from the negative effects of explor- ation, which have been evident in the area. Pine trees on 800 ha have been destroyed and the company has drilled deep holes on the mountain, resulting in pollution.

“The result is that many tourists who come to appreciate the mountain’s unique environment are staying away. This is killing our curio business,” says Likhubula Curio Vendors chairperson James Patani.

Malawi’s Minister of Environ-ment and Climate Change, Jennifer Chilunga, says the Ministry is monitoring the situation.

Springstone contracted Mitsui Mineral Development Engineer-ing Company (Mindeco), of Japan, to undertake the exploration drilling.

Phase 1 drilling at the 400 km2 prospecting licence site started in 2011 and a superficial horizon of rare-earths-bearing kaolinite/ halloysite clay has been dis- covered.

“An analysis of core from these holes indicates that this clay contains total rare-earth enrichment (REE) similar to that of Chinese deposits as well as heavy rare- earth enrichment. Very low radio activity is associated with the clays, which is a potentially positive metallurgical attribute,” says the company.

It says initial leach testing conducted at Mindeco’s research and development centre indicates that the recovery of rare earths may be possible through simple leaching of the clay.

Springstone suspended the project while it was in the second phase of a drilling exercise.

Besides drilling, it has undertaken extensive baseline environmental work, including a study on how indigenous vegetation could be regenerated as part of future development of the site.

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Work completed so far should advance the REE project towards the prefeasibility stage by mid-2013,” says the company.

Springstone is 67%-owned by Jogmec, with Gold Canyon Resources owning the balance of the shareholding.