Mining & Trade News

The role of the military in mining sector in many countries has been primarily seen as a means of securitization of the artisanal and small-scale mining sector. In many cases, the military have been used as part of state-led efforts to prevent informal mining and smuggling of minerals. In a bigger picture worldwide, military has been used to span mine clearance, for tactical purposes and for humanitarian demining, providing security for mining sites, and manage valuable mineral resources. In other countries, former military personnel also transition into civilian mining roles thereby bringing valuable skills to the industry.  All in all, the main task of a military is usually defined as defence of the state and its interests against external armed threats.

1.Selected cases of Tanzania, Ghana and Malawi

Military involvement in mining can also be viewed as part of broader strategies of the state to promote industrialization, through state-owned enterprises (SOE). An example in Tanzania is that involvement of military in mining coincided with a government turn towards resource nationalism. In Tanzania, there are theoretical frameworks that are based on three elements; securitization of the mining sector, the nature of civil–military relations, and the nature of military involvement in the mining sector. There is a direct and official involvement of military actors in mining production activities during peacetime; for example, in managing mining activities at extraction sites, providing security in and around mines, and participation in governance institutions in the mining sector. However, there have been military involvement in mining which coincided with a government turn towards resource nationalism, and that military involvement was linked to discourses and practices in Tanzania. Thus, the military is involved in direct and official involvement of military actors in mining production activities during peacetime; for example, in managing mining activities at extraction sites, providing security in and around mines, and participation in governance institutions in the mining sector.

In Ghana the government took an effort to eliminate unlicensed artisanal and small-scale mining (ASM) popularly referred to as ‘galamsey’. At a time when donors and other governments in sub-Saharan Africa are working diligently to identify ways to formalize ASM and to integrate the sector into broader economic and rural development frameworks, the government of Ghana turned to its military and police to combat illegal activity. The result was alleged military brutalities against illegal gold miners and malicious destruction of confiscated excavators and other mining equipment that became very common. Footage of such excesses by the military was on many occasions captured on videos and shown on national television. Yet, despite the aggressive posture of the military to combat these illegal activities, the country has rather witnessed a surge in the phenomenon.

In Malawi, the military's primary role in mining is security and enforcement, specifically to combat illegal mining and protect mineral resources from smuggling. While there have been calls to deploy the Malawi Defence Force to establish camps and control illegal activities, mining experts have the view that this approach should be balanced with effective civilian management. This was a reaction to where in some cases previously, the military had been involved in raids and crackdowns on illegal mining sites, such as Namizimu Forest in Mangochi District. To avoid such actions, the Malawi government initiated the signing of an MOU in 2023 that was expected to enhance security of the mining industry from the illegal miners and also ease smuggling of minerals and gemstones. At the signing of this MOU, the Ministries of Mining and Defence agreed to promote and safeguard mines. Malawians were the assured that the military will carry out joint activities with Ministry of Mining in safeguarding minerals by curbing illegal mining and help to enforce sustainable mining practices from both artisan and large-scale miners.

2. What should the Malawi government do?

•  Provide the Military with the required resources, training and operational independence devoid of any form of political interference to safeguard the minerals.   
• Involve residents within local mining communities affected by ASM activities to cooperate in providing the military with timely information on these activities. 
• Initiate cooperation and coordination among all the relevant stakeholders in the mining sector although in many contexts, local military forces are reluctant to accept coordination or instruction from a civilian authority 
• Of late, the active participation of some foreign nationals in Malawi, particularly Chinese operators especially in the gold mining sector has turned ASM activities into highly organized groups who are equipped with mechanised and efficient mining equipment and various weapons to safeguard their activities. As a result, there is need to closely monitor environmental impacts to the surrounding communities. This must be checked and the military should work hand in hand with the communities. 
• Engage the military in strategic resource nationalism process in future.

Abstract:

Ilmenite and rutile are a source of titanium pigment and titanium metal. These minerals exist as saprolite metamorphic rocks, placer deposits in alluvial environments and beaches and as float or pods and veins in basement anorthosite. These minerals have potential to transform the economy of Malawi through mining and processing to value added products.  

1.0 Ilmenite and Rutile

Ilmenite is a mineral composed of titanium dioxide and iron (FeTiO3) while Rutile is made up of titanium dioxide (TiO2). These minerals occur in igneous and metamorphic rocks. They are a primary source of titanium dioxide pigment mainly used in the production of paints, plastics, paper products and for formulating sunscreens that block harmful UV rays.  

Most ilmenite in Malawi accumulates as heavy mineral sands during stream transport and wave action along lake beaches. Ilmenite can be converted into pigment grade or synthetic rutile via either sulfate process or chloride process. Ilmenite can also be smelted to produce liquid iron and a titanium-rich slag. Rutile often appears as small needles quartz and gem stones giving asterism or cat’s eye effect. The high dispersion of rutile allows it to break up white light into multi-colored points, further enhancing its optical allure.

2.0 Occurrence

Rutile is commonly found in igneous and metamorphic rocks, often alongside other minerals such as quartz and feldspar.   . It often appears in varying reddish to brownish translucent colours.  

The paragneiss of Kasiya area hosts a weathering profile of rutile mineralisation in extensive, shallow, blanket-like formations popularly known as saprolite.  

The Kasiya rutile project will use hydro mining technic and the slurry material from the pits will undergo processing at the wet plant where the cyclones and up-current classifiers will be employed to eliminate fine particles smaller than 45µm. The heavy mineral concentrate (HMC) will be isolated using both coarse and fine spiral circuits to produce coarse and fine gravity tailings enriched with graphite. The graphite will be recovered through combined gravity separation of tailings using froth flotation, which will include polishing and the use of stirred media mills.

Tengani rutile/ilmenite project in Nsanje contains a combination of rutile and ilmenite with ilmenite in great abundance. The rutile/ilmenite deposit exist in form of place deposit derived from adjacent anorthositic rocks and as an ore in the Basement Complex anorthositic rocks.   In the basement anorthositic rock, the ilmenite appears to exist in an intergrowth with rutile, surrounded by very abundant strongly fractured reddish-brown almandine garnet (Viv Stuart Willams, 2021). This is a common occurrence of the alluvial rutile/ilmenite deposit within the alluvial plain. Further research is required into less cost production of TiO2 product.

Makanjira Heavy Mineral Sands is a weathered eluvial layer of Precambrian gneiss containing garnet hornblende biotite. The beach placer is a loose yellow medium sand containing titanium– zirconium. Its particle size varies from 0.1 to 0.5 mm. Ilmenite and zirconite are the main constituents occurring in 0.07 - 0.30 mm size fraction and 0.07 - 0.18 mm size fraction respectively. The mud content has an average value of 0.89%. The ilmenite will be recovered through a combination of gravity, magnetic and electric separation. Lake Chilwa Heavy Mineral Sands consist of beach and dune deposits that were deposited and preserved through several cycles of lake level fluctuations.  

The main HM deposits are located on a very distinct strandline where the conditions of sediment supply, lake level, and hydrological were favourable for the formation and preservation of the sand deposits.  

Sediments, including HMs, were eroded and supplied by several streams and rivers flowing into the lake from surrounding basement gneiss and alkaline intrusion complexes.  

The HM characteristics of each deposit are determined by the proven rock types. Some deposits have local point sources contributing to the HM assemblage.

3.0 Uses of Ilmenite and Rutile

Titanium is critical for industries like aerospace, defense, and renewables. Due to its semiconductor properties, smaller wavelength (<400 nm), high refractive indices, high birefringence and high dispeion make it a raw material for production of certain critical optical elements. Titanium dioxide can be used as a cellulose that covers welding electrodes.   When converted into a metal it is used in aerospace, automotive, electronics industries, and medical devices.  

4.0 Resource Estimate

Sovereign Metals has come up with a mineral resource of broad and contiguous zones of highgrade rutile and graphite across a very large area of over 201km2 within a 15-meter depth of saprolite material. A resource of 17.0 million tonnes of rutile was estimated to exist. The ore contains an average grade of 1.0% rutile. Makanjira Heavy Mineral Sands consist mainly of ilmenite and zirconite with the ore body floor composing a weathered eluvial layer of Precambrian gneiss containing garnet hornblende biotite. The Makanjila titanium-zirconium placers consist of a reserve totaling 367.5869 million tons of which Ilmenite is 9763.676 thousand tons (average grade 42.39kg/m3).  

Crown Minerals estimates that the Tengani EPL contains 1.6 million tonnes of rutile. Most of the rutile is inter twinned with 7.2 million tonnes of ilmenite which calls for the use of Ortech Technology to take the titanium into solution and then recover Ti from the solutions. .  

The Nkhotakota- Augustino stretch along the western shore of Lake Malawi contains an inferred resource of 18.0 million tonnes at 3.7% ilmenite.  

Crown Minerals Ltd has observed pods and thin veins as a common type of mineralization in the anorthosite body. This is the main source of alluvial and eluvial ilmenite/rutile at Tengani.  

The Lake Chilwa beach placer is proving to have a large deposit of ilmenite. Chilwa Minerals has come up with an Inferred Resource of 61.6Mt at 3.9 % THM.  

A recent investigation by Crown Minerals on the basement anorthosite has shown that it hosts abundant titanium mineralization in the basal units of the complex. This mineralization has been observed in an area of 11 Km2. An inferred resource of 3.3 Mt has been estimated using a density of 1 Kg/m3 within a depth of 0.3 m. More work is required to prove that this can be another world class deposit of titanium mineralisation.  

5.0 Value addition

High-temperature chemical reaction is required to transform ilmenite and rutile into titanium dioxide (TiO2). Coal and chlorine gas are used in a fluidized bed to transform ilmenite and rutile into TiO2. Regulated high-temperature of about 1000 0C is used to turn titanium ore and chlorine gas into titanium tetrachloride, known as TiCl4. Hydrolysis and Oxidation turns TiCl4 into TiO2.  

Malawi has the potential to smelt ilmenite and rutile to form titanium oxide slag and pig iron. The titanium slag or pig iron can be converted into titanium pigment using chloride process in combination with salt and cheap power.  

Titanium metal is produced through the Kroll process, where it's reduced with magnesium.  

Mining is a lucrative business such that many large, medium, small, junior companies and new investors are drawn towards mining all over the world. As a result, they may incur huge profits and expanding market share that are further reported in Stock Exchange markets. Some mining companies start very well but end up in misery because some elements of mining as a successful business were over/underestimated. A good and significant estimation calls for mining business opportunities that can be started in the nearest future.

Mining   Business   requires   concerted   efforts,   commitment,   passion   coupled   with continuous   detailed investigations to make informed decisions on whether to proceed with the business or not. One may end up spending billions of money/ dollars on a tenement only to discover that there is  nothing on the ground. Be careful here!!! The following are some crucial elements that can be considered before venturing into a successful mining business:  

1.Mining Business Commitment

Mining business being complex, calls for processes that must be taken including but not limited to Decision   Making,   Mineral   Discovery,   Mineral   Evaluation,   Acquisition,   Excavation/Mining, Processing,   Marketing,   Manufacturing,Mine   Closure and Rehabilitation.   This   is sometimes referred to as the Mining Value Chain and one is reminded to know exactly where he is along the chain and will make decisions on how far to go in future. The next step is to check out whether the investor has the vision, passion, perseverance, finance and time to pursue mining business seriously. Other investors are on trial and error basis and this risks the business. Mining is not for the faint hearted.

2. Decision on which mineral to Explore or Mine

The earths’ crust is rich in mineral resources and only but a few are extracted for industrial use. Depending on the vision, financial potential and present stage in the mining value chain, the investor  can choose  which  minerals/metals to  extract. It   is advisable   for the  investor or  the company to choose a mineral that has a good market demand presently and beyond but should not be exhaustive in the shortest time possible. The issue of evolving industries and the driving commodities must also carefully be considered here as well .    

3. Decision on Mining Business

As an investor or a company into mining, there is need to think if there is a possibility of being successful in Discovering,Evaluation,Acquisition,Excavation/Mining and Processing, Market or Manufacturing of a chosen mineral. The company/investor must be capable of meeting costs of the chosen stage and the potential risks associated at each stage of the process.    

4. Choice of the area to mine

Minerals are found across all over the continents. To start a mining business, a geographical location of an area is  important. The choice should be based on country specific mining legislations, flexibility/ease of doing business, logistics, human capital or manpower resources, infrastructure, Energy/power, security, supply chain and marketability of end products. Considerations should also be based on whether the mining business is within the country/ continent or overseas.

5. Choice (Greenfield or Brownfield)

Mining Business ventures can either be classified as Greenfield or Brownfield. Greenfield ventures are unexplored, as a result they are cheaper to acquire as they can hardly have any previous investments.   Brownfield   ventures  are already explored, mined where investment was previiusly done and  requires   thorough   due   diligence   to   ascertain   the   mineral potential   and   hence   expensive   and   time   consuming   but   can   smartly   and   quickly   generate revenues.  

6. Acquisition/Partnership/Joint  

Mining  businesses   may   be  purchased,   acquired   or   worked   through partnerships. It all depends on the choice of the investor whether to engage a partner or run it sole. It must be noted that acquisition is driven depending on the mining laws of a specific country while partnership may be based on equity or on profit sharing. The investor is encouraged to study all these options to come up with a viable decision.

7. Due Diligence

Any high value commodity should be studied, carefully assessed and looked at if it is going to generate income by bringing profits. This is the same with minerals in a mining business. Mineral prospects are mostly lying unexplored underground. Sometimes acquisitions tend to be overrated in terms of pricing and partnership terms are written beautifully to attract investors.. Therefore site visits and due diligence must be conducted to evaluate the mining business opportunities to get a reasonably fair idea as to what the investor is getting into. A highly competent team of consultants must be engaged to carry out the Due Diligence Process and also some research is required. In this way, investment could significantly be saved from future risks.  

8. Budgeting and Financing

To achieve a successful mining business it is better and important to seek advice from geology,mining, mineral evaluation experts before clicking the business. Preparations of budget plans, financial capability/stand and development of a budget are of utmost significance to take care of expenses on   site   visits,   consultanting   fee,   data   analyses   and   document   purchase,   exploration,  and  mining.

All in all what the investor/company needs to do is to start and take steps to turn the mining business 

Abstract

The mining sector has a tremendous potential to create wealth for the country and create economic linkages that will boost urbanization and the development of commercial agriculture. There is need to introduce effective economic infrastructure and governance systems that resonate with all stakeholders. Quick wins are in the development of uranium, niobium, rare earths, rutile and graphite.

1.0  INTRODUCTION

Malawi Vision 2063 states that “Mining has tremendous potential to  develop and support the inclusive wealth creation agenda”.   This is through three pillars that are in this paper.  These are Agriculture Productivity and Commercialisation, Industrialisation including Mining, and Urbanisation including Tourism.

The author believes that under

Pillar 1, Agriculture Productivity and Commercialisation, mining can provide a market for agriculture products to feed the mines through technical and financial support to cooperative farming in food crops, livestock, and fisheries production. Rock phosphate is available for extraction and for the production of phosphoric acid.

Pillar 2, Industrialisation through Mining, offers an opportunity for mineral value addition, research, science, and innovation. There is an opportunity to export highvalue mineral products such as uranium, niobium, rare earths, graphite, and titanium (rutile/ilmenite). There will be massive direct and indirect job creation and foreign reserve generation (wealth creation).

Pillar 3, Urbanisation including Tourism, will benefit from the creation of mine towns and cities with improved health, education, and reticulated water facilities. The towns and cities will also trigger high consumption of agricultural products. Urbanization will increase demand for industrial minerals such as cement, sand and aggregate, iron and steel, and ceramic clays.  

2.0  ENABLERS OF THIS TRANSFORMATIONAL AGENDA

The above scenario can be achieved in the medium to long term if the following enablers are prioritized and given special attention.     

2.1   Economic Infrastructure

Provision of modern transportation links such as tarred roads and rail lines, electricity, and financing mechanisms through development finance will go a long way towards speeding up the development of the mining sector.     

Transport infrastructure

Mineral resource endowment is spread throughout the whole country. There is a need to develop cheaper transport modes such as lake services and rail linkage to Monkey Bay Port. Chilumba and Nkhata Bay ports need to be rehabilitated. Migowi –Nambazo, Migowi – Songwe, Mangochi – Makanjira, Likuni – Malingunde, Makawa – Njereza, Chitipa Junction – Kayelekera, Kasungu – Chikowa, and Chamono – Kanyika roads need to be upgraded to provide easy transportation of mineral products.      

Electricity Connectivity

Provision of electricity for mine development is a backbone for mineral development. EGENCO has a total installed generation capacity of 441.95MW, with 390.55MW from hydro power plants and 51.4MW from thermal power plants.  The mining sector requires about 500MW in the medium term, and this is posing a big challenge for mine development. This energy demand is required by 2025. Efforts for regional power interconnection, thermal power development and green energy production are recommended.        

Financing Mechanism

The realization of wealth creation from mining requires long term financing instruments. On average projects earmarked to kickstart the wealth creation agenda for the country require a capital of US$ 200 million per project. This will need long term financing instruments of loan payback period of between 3 and 6 years. There is need to establish a Development Finance Institution (DFI) with credible lines of credit and State-Owned Enterprise (SOE) to manage state equity and diversification of mature projects to Malawians.  

Key players that should finance the sector include Malawi Agriculture and Industrial Investment Corporation (MAIIC), Standard Bank, FDH Bank, National Bank and yet to be recommissioned Malawi Development Bank. We need to understand that apart from monetary gains from mining, there are also other benefits such as urbanization, job creation and economic infrastructure and social services.   

 2.2  Effective Governance Systems

The mineral sector in Malawi faces a negative public perception on how it is governed and how government has arranged its fiscal regime. There is need to relook at the mining legal framework to be relevant with private sector growth and bring about institutional transformation and restructuring that brings efficiency and transparency in the management of revenue from the mining sector.      

Community engagement

Public perception shows that government has no capacity and human resources to govern and monitor what is happening in the minerals sector. As a result, it is losing revenue through smuggling of minerals and illicit financial flows. This needs to be corrected. There is a formal sector and informal sector.  The formal sector is made up of exploration companies and industrial minerals mining companies. Exploration companies have been sending samples for analysis to accredited laboratories. This has been viewed as exporting mined minerals in the name of samples. Companies mining industrial minerals such as coal, limestone and aggregate are doing it in a formal setting and reporting their production and revenue to Ministry of Mining and Malawi Revenue Authority.  We now need civic education to prove to the nation that these samples are necessary and have put Malawi on the map in discovering high value minerals such as uranium, niobium, rare earths, graphite and rutile.

The informal mining sector is made up of artisanal and small-scale miners (ASM). These are mining gemstones and gold. These are characterized by smuggling and social decay and illicit financial flows. Unfortunately, their activities are denting the whole mineral sector.  Government needs to come out to explain what is happening and how it is going to deal with this sector in terms of formalization, support to training, financing, and marketing.    

We need to protect our exploration companies from undue criticisms and apathy. The hold the key to wealth creation for the country.    

Fiscal regime

The fiscal regime determines how the revenues from mining projects are shared between the government and companies. Fiscal tools are used to create a fiscal regime to govern mining projects. These tools include fees and taxes are in form of royalties, income tax, resource rent tax, withholding tax on dividend and interest, import duty, VAT and state equity. In order to foster equitable benefit to government and the resource company, there is a need to come up with an exclusive taxation act that also be backed up by a customs procedure code that is exclusive to mining. Any fiscal item capping needs to be removed from the Mines and Minerals Act in order to be flexible in coming up with equitable benefit sharing.

In totality, the total government revenue should not exceed total investor revenue as this will attractive the investor to invest in mining as he bears the risks associated with mining.      

Mindset change

This is a serious issue in Malawi. The public thinks resource companies are rich and smugglers. These are a group of risk taker businessmen who mobilise capital from syndicated banks and stock exchanges. They create jobs, stimulate economic linkages and bring skills development and technology. Let’s engage them on evidence-based issues not speculation. There are laws and regulations that spell out offences and penalties.  

Let’s promote positive thinking to develop the mining industry. 

3.0  PRIORITY PROJECTS

Recent and current exploration activities place two groups of mineral projects that can take off within the next three years. These are for export and import substitution. Export and valuable projects include Kayelekera uranium, Kanyika niobium, Kasiya rutile and graphite while those for import substitution include cement, coal, iron and steel, glass sand and ceramic clays. Import substation minerals will play a big role in promoting growth of towns and cities.  

4.0 STIMULANTS FOR FAST TRACKING MINING CONTRIBUTION    

TO WEALTH CREATION

The following interventions need to be undertaken with speed and patriotism to get out of the current economic mess:

• Mineral Development Agreements require a short consultative process not exceed six months. This helps to take advantage commodity price increase.
• Special consideration is required to speed up mine development agreements (MDA) through cabinet and parliament. There is need to fasttrack the of Niobium, Rare Earths, Uranium, Graphite, Rutile and Heavy Sands to boost wealth creation.
• Community engagement through social contracts (community development agreements) is key to building trust between resource companies and beneficiary communities. Periodic consultation with the community is key to foster good coexistence.
• Initial exploration programs do not significantly impact on the environment. These are restricted to pitting and trenching, therefore need to be exempted from rigorous environmental and social impact assessments (ESIA) as they delay mineral deposit discovery and increase risk capital that would be used in future for from pre-feasibility study level.    

5.0 KEYS PLAYERS IN THE IMPLEMENTATION OF THIS INITIATIVE  

Ministries, Departments and Agencies

For the mining sector to contribute to wealth creation in the shortest time possible there is need to respond positively in terms of building positive relationship between government, the public and resource companies. The key players are the Ministry of Mining, the Ministry of Finance and Economic Planning, Ministry of Trade and Industry and Malawi Revenue Authority. These need to come up with a fiscal regime that offers equitable economic and financial benefit sharing.     

Private Sector

The keys players for making this vison to be realized and effective are resource companies, formalized ASMs in form of Cooperatives and Development Finance Institutions. Offshore financing can be leveraged though local banks through management of lines of credit. This is possible with Standard Bank, National Bank, First Capital bank and New Building Society bank.     

Academia

The role of academia and research institutions is crucial in providing relevant skills and technology necessary to sustain the development of the minerals sector. Academic and research institutions should build partnership with the private sector through internship and opportunities for collaboration with academic institutions in solving the industry’s problem using undergraduate and postgraduate students during their research assignments. Possible collaboration partners in this area are Malawi University of Business Applied Sciences, Malawi University of Science and Technology, and University of Malawi. Research Institutions involved soil science and geotechnical studies are key to provide solutions in various stages of mineral development.  

Development of high value mines are possible through building Public Private Partnerships (PPP) and building trust between stakeholders in mining. These include government, resource companies and the public. Promoting value addition in partnership with private sector and academia will build strong economic linkages for job creation.  

6.0 CONCLUSION  

Mining offers great opportunity to industrialize the country and promote urbanization. Through mining, countries create wealth and skills necessary to bring technological innovations. Job creation and improvement of goods and services in the agriculture sector get boosted.  

Collective effort to support this sector will promote good governance, economic growth, economic linkages, development of economic infrastructure and favourable macroeconomic conditions that will bring confidence to the private sector and the country’s citizens.  

The country needs to unite for a purpose of graduating from poverty to prosperity. Let us all bring the change that all we need to be in. 

Malawi is endowed with a vast mineral resource base. Most of the areas are being explored for various minerals including the critical minerals, rare earths, HMS (Heavy Mineral Sands), coal, gold, precious and semi-precious minerals(gemstones), dimension stone, rutile, graphite, niobium, uranium, bauxite, limestone,  just to mention but a few. Malawi has witnessed an influx of exploration and mining companies scrambling for these minerals.

There have been Mining Development Agreements (MDAs), Community Development Agreements (CDAs) signed and of late Lindian (an Australian mining entity) is carrying out construction in Balaka district ready to start mining  rare earths. Other developments that are of interest to note are the establishment of Malawi Mining Investment Company (MAMICO), a state-owned mining enterprise and Mining and Minerals Regulatory Authority (MMRA). All these developments have progressively been implemented and it is anticipated that the coming in of the new government shall foster such initiatives and also continue bringing and leveraging new insights into mining operations, activities and ventures. 

1. What does the Mining Sector expect from the new government?

While admitting that there have been positive and negative impacts arising from implementation of mining activities and interventions, it must be noted that the positive impacts are the ones that can shape and bring the economic base to achievable limits. The new government must at all cost aim at addressing some challenges in the mining sector by bringing sanity.

The following are expectations to the new government regarding the mining sector development:

•  Continuation of the Ministry of Mining as a standalone Ministry. This is because there are a lot of developments taking shape in the sector including opening of mining and metals production companies. These are anticipated lato change the country’s economic landscape  including increasing the Gross Domestic Product. 
• Facilitate formalization of Artisanal and Small-Scale Miners (ASMs). To integrate into the formal economy, the government should create legal frameworks and support systems to help illegal and small-scale miners meet legal requirements. The government facilitates  formalization of ASMs but nothing much is done on the ground. The reasons include lack of capacity building, limited funding, among others.
• Allocate more funding to the mining Ministry and institutions. These institutions include the Geological Survey, MMRA and MAMICO. Pumping more funds to these entities will boost mining activities and governance in the country. Due to underfunding of these entities, there is a slow pace at which the mining sector is transforming. The new government must embrace the culture of funding the mining sector to make things happen.
• The Government should come up with interventions to promote value addition and beneficiation of the mineral resources with the view to create higher-value products, increase exports, create more jobs and drive industrialization and diversification.
• Urgently lift the ban that was imposed in February 2025 on gemstone exports. This ban has affected the economy of the country by increasing forex shortage, facilitated gemstone smuggling, affected people’s livelihoods who depend on these gemstones as a means of income and revenue base of the government has also been affected.

2. What should the government do on illegal Gold Mining?

There is a proliferation of gold mining hotspots in the country. Almost in every district, gold has been discovered by ASMs and is being mined illegally. Combating illegal gold mining requires a multifaceted approach, including formalizing artisanal and small-scale mining (ASM) to integrate into the legal economy, strengthening regulatory and enforcement mechanisms through improved legislation and oversight, and leveraging monitoring using modern technology such as drones. The government needs to come in to sensitize these groups on the importance of licensing.  ASMs must also be encouraged to form partnerships in form of cooperatives. Offering grants or low-interest loans to encourage cooperatives formation can improve safety and operational standards of mining activities. The government must also facilitate designation of gold mining hotspots as formal areas and must be well mapped and monitored by the government.

3. Impact of law enforcement on illegal Gold Mining

In the context of illegal gold mining, law enforcement must not only focus on punishing offenders but also addressing the underlying socio-economic conditions that drive individuals into illegal gold mining activities. Many small-scale miners turn to illegal mining due to poverty, lack of employment opportunities, and limited access to formal mining permits. Without viable economic alternatives, enforcement actions such as arrests may not necessarily solve the problem and may also be liable to harm marginalized communities leading to increased poverty and social unrest. To align with sustainable development principles, enforcement efforts should include a focus on poverty reduction and the provision of alternative sources of livelihoods.

Federation of Artisanal and Small Scale Miners (FASMM) President Percy Maleta conducted an educational visit to Tanzania’s small scale gold mines. Mining & Trade Review’s Tawonga Nyirenda Mayuni engaged Maleta to find out what he learnt from the visit. Excepts

• What were the primary objectives of your educational visit to Tanzania’s small scale gold mining sites?

The main objective was to learn from Tanzania’s successful approach to formalizing and empowering the artisanal and small-scale mining (ASM) subsector. Tanzania has established strong institutional frameworks, including cooperatives and partnerships between government, miners, and private investors. For us in Malawi, this visit aimed to draw lessons on how to organize, regulate, and commercialize ASM operations to ensure miners benefit fairly from their work while contributing meaningfully to the national economy.

• What key insights or knowledge have you gained from this visit so far?

We have learnt that structured organization, policy consistency, and supportive infrastructure are key to ASM success. In Tanzania, the presence of gold trading centres, mineral associations, and strong collaboration with the Central Bank ensures transparency and better pricing for miners. We have also seen the power of value addition and local beneficiation, where miners do not just extract but also process and refine their minerals locally.

• In what way does this experience support the development of Malawi’s ASM subsector?

This visit provides us with a practical roadmap to improve our own ASM ecosystem. We have seen how decentralization of licensing, creation of mineral markets, and technical support can uplift small-scale miners from survivalist activities to sustainable enterprises. These lessons will help FASMM engage policymakers and advocate for a more enabling environment for ASM operations in Malawi.

• How important is regional knowledge sharing and capacity building among artisanal miners across neighbouring countries?

It is extremely important. Our challenges in ASM are similar—lack of access to finance, equipment, markets, and technical expertise. Regional collaboration allows us to exchange ideas, technologies, and solutions that have already worked elsewhere. It also builds solidarity among miners, ensuring we grow together as a region rather than in isolation.

•  How can exposure to international mining exhibitions and interactions with officials benefit Malawian miners?

Such exposure opens up new possibilities. Our miners can learn about emerging technologies, safer mining practices, and access to markets beyond our borders. Interacting with officials and experts helps build networks for investment and technical support. It also boosts confidence among our miners, showing them that they are part of a global industry with real opportunities for growth.

• During your visit, you met Tanzanian officials from the Ministry responsible for mining and gold dealers. What specific outcomes or collaborations did you  achieve through these engagements?

We hope to establish partnerships for training, mentorship, and knowledge exchange. We also aim to explore possibilities of linking our miners to established gold dealers and refineries in Tanzania for fair trade and better value realization. Furthermore, we want to harmonize cross-border trade policies to make it easier for ASM operators to benefit legally and transparently from regional markets.

• Are there particular policies, practices, or technological approaches from Tanzania that Malawi could consider adopting?

Yes, several. Tanzania’s establishment of Mineral Trading Centers is a game changer—we would like to replicate that model to reduce smuggling and increase local revenue. Also, their cooperative model, where small miners work under registered associations with shared equipment and government support, is something Malawi can adopt. On the technology side, Tanzania’s small-scale gold processing facilities and mercury-free recovery systems are worth introducing in Malawi.

• In your opinion, how can mining exhibitions and international interactions foster partnerships, facilitate technology transfer, and improve market access for artisanal miners?

Exhibitions create direct linkages between miners, equipment suppliers, financiers, and buyers. They expose our miners to innovations that make mining safer, cleaner, and more productive. Through these events, we can attract investment into Malawi’s ASM sector, build partnerships for training, and open pathways for our gemstones and gold to reach fair international markets.

• Are there specific innovations or technological advancements you were interested in exploring during this tour?

Yes, we are particularly interested in small-scale processing technologies that are environmentally friendly, such as mercury-free gold recovery systems, and affordable gemstone cutting and polishing machines. We also want to understand how Tanzania has integrated digital systems in licensing and mineral traceability, which enhances transparency and market confidence.

• How do you envision regional cooperation among Malawi, Tanzania, and other neighboring countries strengthening artisanal mining industries?

Regional cooperation can create a powerful block of shared knowledge, fair trade, and stronger bargaining power in global markets. By aligning our mining policies, sharing geological data, and standardizing pricing mechanisms, we can protect the interests of small miners and ensure they benefit fully from their labor. It can also reduce illegal cross-border trading and promote responsible sourcing.

• What strategies or steps can be implemented to enhance cross-border collaboration and facilitate effective information exchange?

We propose creating a regional ASM platform or network for continuous dialogue among miners’ associations, ministries, and the private sector. Joint training programs, exchange visits, and shared research can enhance learning. Governments can also formalize bilateral agreements to support legal trade, harmonize taxes, and simplify procedures for small miners moving goods or equipment across borders