Mining & Trade News

By Modester Mwalija

Women in Malawi’s mining industry play an essential but often overlooked role. Despite their significant contributions to day to day livelihood, their potential remains largely untapped due to systemic challenges that hinder their progress.

In an interview with Mining and Trade Review, President of the Federation of Women and Youth in Mining (FWYM) Flore-Annie Kamanga explained that across the country, particularly in artisanal and small-scale mining (ASMs), women encounter limited access to resources, face health and safety risks and are restricted by cultural norms to pursue some vital roles in the trade.

“The reality is that most women in ASM are doing the hard, manual labour and they work long hours for very little pay. The conditions are often dangerous, leaving women vulnerable to exploitation,” she said.

Kamanga added that women in ASM also face significant challenges when it comes to accessing resources, technology, and training, making it difficult for them to improve their productivity or move beyond low-income activities.

 “Women have very little access to the resources they need, whether it is financial support or access to better technology and this limits their ability to grow in the industry.”

She also said that health and safety risks are another critical concern as women miners often work in hazardous conditions without adequate safety measures or protective equipment, exposing them to higher risks of injury and illness.

“Lack of protective gear is a major issue as many women are working in environments where they are exposed to harmful chemicals and dangerous conditions, and they do not have the necessary equipment to protect themselves.”

She explained that cultural norms further restrict women’s opportunities in the mining industry. These norms often prevent women from accessing higher-paying, skilled jobs, leaving them in roles that offer less financial reward and fewer opportunities for advancement.

“There is still a belief that women do not fit in certain roles in mining especially in the higher-skilled, better-paying jobs,”

Despite these obstacles, there has been some progress in raising awareness to, among other things, include more women in technical and leadership roles. However, Kamanga pointed out that progress remains slow, with gender disparities still prevalent across the sector.

“We are seeing some movement, but it is not enough, there is still a lot of work to be done to close the gender gap.”

Kamanga explained that advocacy groups and NGOs, including the Federation of Women and Youth in Mining, are working hard to promote women’s rights and improve their working conditions.

“We are doing everything we can to empower women in the mining sector and we are advocating for their rights, pushing for better conditions.”

Government has come up with several policies to address suich issues such as the National Gender Policy (2015) and the Malawi Growth and Development Strategy (MGDS III), both of which stress on gender equality and women’s empowerment. However, according to Kamanga, the effectiveness of these policies remains mixed.

“The policies are there, but implementation is where the challenge lies so we need stronger enforcement and better monitoring to make sure these policies are actually benefiting women on the ground.”

Looking forward, Kamanga outlined several key goals for the Federation of Women and Youth in Mining. One of the organization’s primary objectives is to advocate for higher female representation across all levels of the mining industry, from artisanal miners to executives in large mining companies.

“We want to see more women in leadership roles as we are pushing for gender quotas and more inclusive hiring practices to make sure women have equal opportunities,” she said.

Kamanga further said that another goal is to provide women and youth with the skills and education they need to participate meaningfully in the sector.

She said: “The importance of technical training, business management, and leadership development in empowering women to succeed in mining cannot be overemphasized.”

“Education and skills training are crucial, and there is a need to equip women with the tools they need to thrive in this industry.”

FWYM is also committed to influencing national and local policies to better protect and empower women in mining. Kamanga explained that the organization is advocating for stronger enforcement of gender equality provisions and greater support for women miners.

“We need the government to step up and ensure that the laws meant to protect women are enforced,” she said.

Kamanga highlighted that FWYM is building a network of women in mining; providing a platform for them to share resources, experiences, and support, noting the importance of mentorship programs and access to finance for women-led mining enterprises.

 “We need to create a strong community where women can help each other succeed in so doing we can significantly boost women’s participation in the industry,” she said.

She also observed that cultural change is essential for the future of women in Malawi’s mining sector. Through outreach, education campaigns, and partnerships with traditional leaders, FWYM is working to shift perceptions about women’s roles in mining and reduce gender-based discrimination.

Kamanga said: “We need to change how people view women in mining as this is not just about policy – it’s about changing mindsets.”

Besides gender inequality, other problems in small-scale mining sites include child labour, alcoholism, prostitution. marriage breakages and children dropping out of school.

By Wahard Betha

Over two months have elapsed since the Malawi Government signed Mining Development Agreements (MDAs) with Lancaster Exploration (a subsidiary of UK firm Mkango Resources) for the Songwe Hill Rare Earths Mining Project in Phalombe and ASX-listed Lotus Resources for the Kayelekera Uranium Mining Project in Karonga but the Government is yet to make the agreements public.

The two publicly listed companies only published some contents of their agreements with Lancaster listing the key components of its MDA as  5% royalty of gross revenue; 30% corporate tax rate;10% non-diluting equity Interest in the Project to Malawi Government; Exemption from customs and excise duties – Lancaster will be exempted from Export Duty, Import Duty, Import Excise and Import Value Added Tax (VAT) on imports and exports of capital goods as provided in the applicable law; 10 years stability period; 10 years Tax loss carry forward; and Community Development Expenditure as an allowable tax deduction.

On the other hand, Lotus announced in a Press Statement soon after the signing ceremony of the two MDAs that was convened in Lilongwe by the Presidential Delivery Unit that the key features of its MDA for Kayelekera Uranium Mine include:

 • A stability period of 10 years from date of execution during which the Project will not be subject to any detrimental changes to the fiscal regime

• Royalty rate of 5% and the corporate tax rate of 30%

• Tax losses from acquisition are included, with protection from disputes on tax refunds through the principle of tax set-off. The agreement also includes ability to restructure historical loans and tax losses on a tax neutral basis

• Malawi’s currently legislated Resources Rent Tax (RRT), which is not fit for purpose, does not apply. Instead, the Government of Malawi proposes to consider an alternate supernormal profits tax (that may consist of a sliding scale linked to uranium price) to replace the current RRT. The Company will receive a waiver until such time as this is effective.

• Exemptions for import and export duties, excise and Value Added Tax (VAT) on capital goods and on specified consumable items directly related to mine production

• Withholding Tax relief (currently 10% for a mining company) on dividends to Lotus for the majority of the mine life

• The maintenance of foreign currency bank accounts inside and outside Malawi that are supportive of project financier requirements

• A Community Development Agreement with a minimum value of 0.45% of project revenue set aside for community projects

• Specific legal protection is afforded to the Company, including security of tenure, dispute resolution and arbitration and non-discrimination.

But National Coordinator for Natural Resources Justice Network (NRJN), an umbrella grouping of civil society organizations working in the extractives sector in Malawi, said in an interview there is need for government to make public the entire MDAs including taking its contents to local communities affected by the projects.

He said it is incumbent upon the Malawi Government to implement the commitment of open contracting or disclosure of contracts under the Extractives Industry Transparency Initiative (EITI) of which Malawi is a member.

“From January 2021, the EITI standard set a requirement that every country fully disclose any contracts and licenses that are granted, entered into or amended,” he said.

Rashid explained that open contracting or disclosure of contracts is a vital tool in the resource governance that accountability institutions can use to hold the government accountable.

He said the tendency of hiding such agreements involving exploitation of natural resources propagates public suspicion of what is the contained in the agreements.  

Rashid said: “As a country we have to implement the commitment of open contracting/ disclosure of contracts under EITI.”

“Ever since we started mining in Malawi, only very few MDAs have been made public out of all the medium and large-scale mining activities in the country.”

“There is also a very serious corruption risk as though MDAs are signed there seems to be no accountability mechanisms in place for oversight on the executive arm of government and mining companies.”

“For the accountability institutions to hold government to account there is a need for the contracts to be made public.”

He said it is unfortunate that the Government is embracing EITI standards but failing to implement the commitment on the ground.

Rashid said: “The non-disclosure usually erodes public trust in the process as per historical experience that the public have had in the past over other undisclosed MDAs.”

“It is strange that the Government seems to be trying hard to embrace openness and accountability but challenging the efforts of an open and accountable mining sector.”

“One would expect government agencies to embrace the policies that government is proclaiming by proactively disclosing information but we are still kept in the dark leaving the public with suspicions and expectations.”

But Coordinator for Chamber of Mines and Energy Grain Malunga asked for patience from the general public as they are few processes that needs to be done before making the MDAs public.

“The MDAs will be made public. There is no secrecy about them. They have to be scanned and shared. It is long process,” he said.

By Modester Mwalija

Gemstone mining firm Yami Gemstones Lab and Exports Private Limited (YAGLE) says it is encountering critical delays in its projects due to the Ministry of Mining’s failure to complete an inventory assessment.

In an interview with Mining and Trade Review, YAGLE CEO Yamikani Jimusole said the hold-up in completing critical inventory assessments has stalled several of the company’s high-priority projects.

“The delay by the Ministry has prevented us from moving forward with our sales and marketing initiatives, not to mention our ability to form strategic partnerships with investors; this is severely impacting our anticipated returns on investment,” he said.

Jimusole said despite signing a non-disclosure agreement with Export Development Fund (EDF) which is buying gemstones under Reserve Bank of Malawi’s Structured Market, YAGLE is struggling to progress without the required reports.

“We are sitting on unsold inventory that could generate significant revenue, but without authentic gemstone appraisals, we cannot move forward. Investors are growing impatient,” Jimusole explained.

He also said that the delays have also paused their funding request to the National Bank of Malawi, as the bank is waiting for necessary documents from the Ministry of Mining.

Jimusole said his company has been forced to revise several key project timelines like delaying the opening of the Mzimba gemstone mines which was set to be before 2025.

“Other projects, including the Environmental and Social Management Plan (ESMP) for Mangochi operations and the establishment of a Gemmological and Entrepreneurship Institute, have been pushed further to 2026,” Jimusole stated.

Jimusole complained that the Ministry has been slow to respond to their requests despite sending several reminders.

“The last time we heard from them was in May 2024, when we were told by the Principal Secretary, Dr. Joseph Mkandawire, that our request was forwarded for assessment. Since then, nothing,” he said.

In response to the setbacks, Jimusole said it has reached out to various stakeholders with the hope of finding a solution: “We have sent letters to the US Embassy, the International Colored Gemstone Association (ICA), and the Reserve Bank of Malawi, asking for their support in resolving the issues with the Ministry.”

He said such prolonged delays pose long-term risks to both YAGLE and the gemstone industry as a whole.

“If this continues, we are looking at massive financial losses, reduced operational efficiency, and potential reputational damage,” said Jimusole.

He also expressed concern that the delays could disrupt local supply chains and tarnish Malawi’s reputation in the global gemstone market.

Malawi’s gemstone sector holds immense potential for economic growth and development. With more efficient systems, Malawi could unlock the full value of its vast gemstone resources, positioning itself as a significant player in the global gemstone market while boosting local job creation and economic stability.

By Marcel Chimwala

ASX-listed Lotus Resources has announced that it has signed a binding agreement and a term sheet for uranium sales, as well as a binding unsecured loan facility for the restart of its Kayelekera Uranium Project in Karonga.

Lotus CEO Greg Bittar said in a statement that together, the offtake arrangements represent the sale of a minimum of 1.5 million lbs and up to 1.8 million lbs of uranium produced at Kayelekera from 2026 through until the end of 2032 to PSEG, a subsidiary of Public Sector Enterprise Group which is a diversified energy company based in Newark, New Jersey, and Curzon Uranium Ltd, a leading international uranium market participant.

Bittar explained that the contract pricing achieved in the arrangements is the result of competitive discussions and secured to deliver strong margins, including for any optional quantities, for the uranium sold.

 “A fixed-price escalation percentage per annum applies from the time of deliver,” he said.

He said the offtake arrangements, as with the others being negotiated, provide Lotus with the necessary commercial flexibility for Kayelekera’s key production restart milestones and early-stage production levels.

“The term sheet with PSEG is subject to execution of a definitive uranium sale and purchase agreement within four months and Lotus proceeding with the restart of Kayelekera. The binding agreement with Curzon is conditional on Lotus completing an equity raise in conjunction with the restart of Kayelekera,” he said.

The unsecured loan facility provides that the repayment of the facility must occur 12 months from the first utilisation date (unless extended to 18 months from the first utilisation date as elected by Lotus).

Lotus’s continued engagement with North American nuclear power utilities and commodity trading houses for offtake of more substantial volumes of uranium from Kayelekera is designed to leverage utilities’ continuing demand for contract pricing based on the long-term uranium price. It will also support any potential debt funding for Kayelekera’s restart.

Bittar said: “Our first two sales contracts, coupled with unsecured financing with significant drawdown flexibility, mark a terrific milestone for Lotus and our Kayelekera Project, demonstrating customers’ confidence in the strength of the uranium market as well as providing a strong endorsement of our plans for the project.”

“Through the initial offtake and prepayment / funding discussions, we have established critical knowledge and a breadth of long-term industry relationships with multiple substantial strategic customers. This will serve us well as we look to secure further contracts closer to the commencement of production.”

By Tawonga Nyirenda Mayuni

The Assistant Mine Manager for Karonga-based Lisikwa Coal Mining Company Zeru Thopola says there is need for the government to empower the coal industry by facilitating the establishment a coal industry association.

In an interview with Mining and Trade Review, Thopola said the government should come in through the Department of Mines (DOM) and bring together coal miners through an association that can control the operations of the industry.

The call for the establishment of the association comes amidst market woes that have characterized the industry.

Thopola said: “Lisikwa coal mine is facing unfair market competition where by other coal companies tend to lower coal prices on the market, hence we do not get orders. As a result, the company is making little money and struggling to pay bills and wages.”

He also said financial constraints that local coal miners such as Lisikwa are experiencing can be solved once the government establishes a loan facility for coal miners.

“Most of the companies in the coal industry do not have the financial capacity to run their mines but they have mining licences. They wait for other investors with the financial muscle to partner them till the licence expires. If you go to the cadastral licensing system, you will find out that more than 20 companies have licenses for coal but less than five are operational,” Thopola said.

Thopola also added that transportation of coal is another challenge due to poor road conditions, which leads to unexpected breakdowns, delay and accidents.

Commenting on the future of the coal mining industry in Malawi, Thopola said that the future of the coal industry in Malawi needs advanced technology that will require shaft sinking since most of the coal is found deeper than 50 meters.

Lisikwa investments Limited was established in 2008 and employees 150 people. The company currently sells its coal to Illovo Sugar Malawi (Dwangwa) and Presscane Limited.

By Modester Mwalija

ASX-listed Sovereign Metals, which is prospecting for rutile and graphite at Kasiya area in Lilongwe, has announced that it has commenced a hydraulic mining trial at the rutile-graphite prospect as part of the ongoing Pilot Mining and Land Rehabilitation Program.

Sovereign MD Frank Eager announces in a statement stating that the hydraulic mining trial aims to further develop previous test work as part of the Kasiya Optimization Study. 

The trial is being conducted by Fraser Alexander, a global industry leader in hydraulic mining, following successful completion of a dry mining trial in July 2024

“With valuable insights gained from the dry-mining approach at Kasiya, we are now entering the next phase, which includes the commencement of the hydraulic mining tests, processing and backfilling material, and progressing towards the rehabilitation phase which we expect to take approximately three months to complete including backfilling of main trial pit, deposition and rehabilitation test work,” states Eager

He says that the company has also made significant strides in water management for the trial. A temporary water storage pond, filled with six million litres of groundwater from eight on-site boreholes, will supply the water required for the hydraulic mining operations.

“This water will be used during the hydraulic mining trial and continuously recycled from the constructed holding cells where sand and fines fractions will be stored respectively prior to the planned deposition and rehabilitation test work allowing for the recovery of approximately 34% of the water, which will be returned to the water storage pond.”

Sovereign Metals is confident that the successful completion of the hydraulic mining trial and associated tests will further solidify Kasiya as a flagship project for rutile and graphite extraction in Malawi, setting a new benchmark for sustainable mining in the region.

OUTSTANDING BATTERY ANODE MATERIAL PRODUCED FROM KASIYA GRAPHITE

Meanwhile, studies have confirmed Kasiya graphite concentrate as an excellent feedstock for natural graphite anode materials suitable for battery production.

Eagar explains that the Kasiya natural graphite presents a unique, low-cost opportunity to develop lithium-ion battery supply chains outside of China as very high quality coated spherical purified graphite (CSPG) anode material produced from Kasiya graphite concentrate has performance characteristics comparable to the highest quality natural graphite battery material produced by dominant Chinese anode manufacturers.

Eagar comments: “These results confirm that Kasiya graphite concentrate will be an excellent anode material feedstock to the battery industry. Not only is the weathered, saprolite-hosted graphite easy to purify to very high-grades, the anode material produced meets the highest industry specifications. Along with the very low BET specific surface area and high tap densities (both resulting in excellent first cycle efficiencies and initial battery discharge capacities), Kasiya has the potential to become a dominant source of graphite supply ex-China.”

“Combining these excellent results with one of the largest graphite resources globally, industry low operating costs and lowest global warming potential, Kasiya is presenting significant advantages over its graphite peers.”

“We look forward to further test-work and market updates as we continue to develop Kasiya as a supplier of premium quality, cost competitive natural graphite concentrate.”

By Marcel Chimwala

CEO for Australian company Lindian Resources, Alwyn Vorster, said during a recent visit to Malawi that the Company is still aiming to have financing confirmed within the next few months, which should allow full scale mine construction at its Kangankunde Rare Earth Project in Balaka to commence later this year.  The Company has already completed numerous preliminary development activities at the project site since it became involved in late 2022. That includes extensive drilling and sampling programs as well as road and other infrastructure development. The Kangankunde Project is located 90km north of the city of Blantyre and 15km south of Balaka.

In June 2024, Lindian announced the appointment of Vorster, who brings 30 years of mining project development experience, having previously held CEO positions with many Australian Stock Exchange-listed companies. For the past year, he was also a non-executive director on the board of Lindian.

Vorster said the Kangankunde Project’s large and high-grade orebody makes it one of the best rare earth projects under development across the world. He said: “Lindian released a feasibility study on the Stage 1 development in early July. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.”

“The feasibility study now paves the way for Lindian Resources to secure financing (which includes US$40 million pre-production capital cost) for the Stage 1 Kangankunde Project development.”

Vorster explained that when in operation, the Kangankunde Project will provide significant economic and social benefits to Malawi in the form of taxes and royalties, jobs and business opportunities, and social and infrastructure investment while additional flow on benefits will be generated from bringing mining investment and development to the region.

The Kangankunde Project is rich in neodymium (Nd) and praseodymium (Pr) rare earth elements. Nd and Pr are a critical component in the production of permanent magnets. Long-term demand outlook for rare earths will continue to be dominated by magnet applications. This growth will be driven by demand for renewable energy and electrified transport applications. As such, the magnet market will be the largest growing sector and it is forecast that it will account for almost 60% of the NdPr market by 2050.

He observed that the project has a bright future due to this potential growth in the rare earth market, the availability of favourable transportation infrastructure in the project area and the good relationship and support that the project is getting from the Malawi Government and local communities.

Since taking over as CEO, Vorster has accompanied the Chairman of Lindian, Mr Asimwe Kabunga, several times to Malawi; meeting with government, community members and local Lindian employees. Vorster commented, “Mr Kabunga has been instrumental in securing the project ownership for Lindian and advancing development, and he will remain our most senior and key contact with most senior government and community people”. I am also pleased to say that we have in the last few weeks strengthened our in-country capabilities by appointing Trevor Hiwa as General Manager Malawi (Country Manager), reporting to myself. He was, until now, a civil engineering consultant designing all civil works and mine support infrastructure at Kangankunde.  Trevor will be our most senior person in Malawi and be accountable for managing key functions of Kangankunde tenure and approvals, government and community relations, legal & compliance and the Malawi corporate financials.  Chrispine Ngwena moves from his current consultancy role to become our full time Manager Community and Government Relations, reporting to the GM Malawi. He will continue the outstanding work to date of managing sustainable relationships between Lindian operations and the Kangankunde Community, local and central Government.  We will also look to appoint financial and compliance related local employees in the near future.”

In terms of operations, the proposed Stage 1 development can have a mine life of 45 years based on current Ore Reserves.  The operation will involve an open pit mining operation and processing plant to produce ~15,300 tpa premium concentrate with 55% Rare Earth Oxide (REO) grade. The clean process of gravity and magnetic separation in the process plant means that water can be recirculated to the plant, thereby reducing the total water requirement. Up to 3MW power will be provided by grid power connection (hydroelectricity) with back up on-site diesel power generation. The Kangankunde Project is located close to good supporting infrastructure which includes proximity to the main M1 highway, rail lines to ports and high voltage transmission lines.

Vorster said: “Unlike many rare earth projects, the Kangankunde Project’s concentrate products and tailings will contain very low levels of radioactive materials and other impurities. This makes the handling of the ore and waste easy and safe and enables the product to be shipped to most potential buyer countries without restrictions.”

The development schedule aims to commence main construction in fourth quarter of 2024 and commissioning of the processing plant late 2025 and first sales in first half 2026.

Vorster said the Kangankunde Project will require more than 200 full time equivalent site roles during the construction phase, and more than 100 full time equivalent site roles during the operational phase. The Company aims to employ and train many of these roles from the local Malawi labour pool.

He also said the Kangankunde Project has the support of and will significantly benefit the local economy and rural community by promoting sustainable growth, creating jobs, and investing in the community while respecting traditional Malawian customs.

Vorster said: “Lindian has been active in the local community, providing financial support for a remote policing unit and assistance to the local schools. It has worked with the local community and government on a resettlement process for community members affected by the Kangankunde Project’s development.”

“A Community Engagement Plan (CEP) has been developed in collaboration with the local government, traditional leaders, communities, organisations, and women's groups in the project area. The CEP establishes a committee comprised of community leaders, local community representatives, Government District Council officials, and senior leadership of Lindian. It will act as a forum for continued community engagement and issues management.”

“Infrastructure upgrades are also planned, including upgrading a 5km unsealed road from the Kangankunde Project site to the M1 Highway into an all-weather road to enhance safety and accessibility. Communication infrastructure implemented for the Kangankunde Project will also improve community access to reliable communications.”

By Modester Mwalija

Since 2021 the mining sector has experienced steady growth due to a supportive legal and regulatory environment that welcomes both local and international players, this is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report states that in 2023, the Mines and Minerals Act of 2019 was repealed to accommodate the establishment of the Mines and Minerals Regulatory Authority (MMRA).

“The MMRA has been established and has been assigned the licensing, inspection, and geological surveying functions to improve regulation and enforcement in the mining sector,” the report reads.

The report says that the Ministry launched its strategic plan for 2022–2027 and began its implementation, reaffirming the Ministry’s mission and strategic objectives.

“One of the initiatives implemented under the Strategic Plan was the completion of a mineral processing and research laboratory in Lilongwe and the installation of key equipment.”

The report further says as of December 31, 2023; the Ministry of Mining had collected 2023/24 revenue amounting to MK747,012,957.80. In total, the Ministry was expected to collect MK1,002,336,233.75, representing 3 percent growth over 2022/23 collection, largely due to increase in the number of mining license applications and revenue enhancement.

During the year under review, the Ministry of Mining, granted 546 various licenses to prospecting mining companies and individuals. 

“378 licenses were given to small scale operators namely 61 Non-Exclusive Prospecting Licenses, 168 Small-Scale Mining Licenses, 149 Reserved Minerals Licenses and 164 licenses were given to larger and medium operators including 106 Exploration Licenses, 28 Medium-Scale Mining Licenses, 1 Large-Scale Mining License, 32 Retention Licenses, 1 Reconnaissance License,” reads the report.

However, the report notes that despite these positive developments, the mining sector currently contributes only 1 percent to the national income as the sector still faces challenges including unreported income, smuggling, environmentally damaging practices, and health hazards associated with substandard mining methods, which pose significant concerns.

“Limited power supply, bad road and railway infrastructure, and other economic constraints elevate overhead and production costs, deterring investors and hindering sector growth,” says the report.

The report notes that to unlock mining sector growth, further policy reforms are necessary including streamlining the legal and regulatory framework, optimizing administrative procedures, enhancing oversight capabilities, and fostering local participation.

“Establishing robust support structures like reliable infrastructure and power supply is crucial to attract and retain investors,” it says.

The report also acknowledges that the ongoing projects in the form of strategic roads, railways, and power plants, which started in 2022/23 financial year, offer a positive outlook for the coming year.”

In the 2024/25 Fiscal Year, the government plans to undertake a number of interventions to foster productivity, transparency, and accountability in the sector so that it contributes significantly to inclusive wealth generation and economic growth in line with Malawi 2063.

By Modester Mwalija

Indications on the ground show that the Ministry of Mining is missing its target in implementing its 2022-2027 strategic plan on the aspect of empowering Artisanal and Small-scale Miners (ASMs) who are encountering persistent challenges that threaten their ability to contribute effectively to the country’s economy.

The strategic plan aims to increase investment in the mining and upstream petroleum sector by adopting the Integrated Rural Development 2017 approach, which aims to promote entrepreneurship and environmentally sustainable mining practices among ASMs.

“By the year 2025 targeted ASMs should be trained in mining and value addition and formalized into recognisable cooperatives,” reads part of the plan

However, our investigations show that ASM operators continue to struggle with issues ranging from regulatory barriers to financial limitations, potentially disrupting these efforts.

President of the Federation of Women and Youth in Mining Flore-Annie Kamanga says in an interview that while the strategic plan outlines a clear vision, the implementation process is stumbling due to the complex regulatory environment.

“The current legal framework is not ASM-friendly. The high cost of licenses and the bureaucratic problems make it nearly impossible for small-scale miners to operate legally. This situation forces many ASM operators to work informally, putting them at odds with authorities and limiting their access to formal markets,” she says.

Kamanga also highlights the problem of lack of access to finance which impedes ASMs’ ability to invest in modern equipment and technologies.

“Without adequate financial support, miners are forced to use rudimentary tools that are not only inefficient but also hazardous,” she says.

She says lack of access to established markets is another critical issue as many ASMs frequently face challenges in accessing fair markets and are often exploited by middlemen who offer low prices for their minerals.

Kamanga advocates for better market structures and value addition initiatives, emphasizing that “there should be systems in place to provide real-time market information and support for forming cooperatives to enhance bargaining power.”

Noah Alfred, an artisanal miner, provides a ground-level perspective on the challenges. He dwells on the financial constraints faced by small-scale miners, stating, “The lack of adequate funds for running a small-scale mining operation is a significant barrier. Despite government pursuing strategies like the Agriculture, Tourism and Mining (ATM), ASMs are not fully recognized or supported.”

Alfred also expresses concern over government’s restrictions of ASMs to use heavy machinery, which he believes hinders progress.

“The use of heavy machinery should be allowed as it would enhance productivity and efficiency. Relying on shovels and picks is too primitive and limits growth,” he says.