Mining & Trade News

Ministry of Mining

The Ministry is responsible for the overall administration of the mining sector in Malawi. It has two departments; the Department of Mines and Geological Survey.  The Department of Mines’ duties include issuance of licenses, inspection of mining activities to ensure that they are being carried out in accordance with relevant laws and regulations, and sensitisation of the general public on mining issues.

The duties of the Geological Survey Department include grass-root exploration and provision of exploration data to interested mining investors. Malawi has carried out a number of surveys over the past years to obtain data that investors can use to follow up on mineral occurrences and the latest surveys include the Geophysical Survey dubbed Kauniuni, which was conducted under the auspices of Mining Governance and Growth Support Project and its follow up the Geological Mapping and Mineral Assessment Project (GEMMAP). The data that can be accessed at the Geological Survey Department head office in Zomba include geological, mineral occurrence, mineral potential and geohazard maps

Contact address:

Private Bag 350

Lilongwe 3

Tel: +265(0) 789492

Mining Review Publications

Based in Prepa Complex in Biwi Triangle Industrial Area in Lilongwe, Mining Review Publications is specialised in providing Media and Public Relations Consulting Services to the mining industry in Malawi. It publishes a monthly newspaper called Mining & Trade Review in print, which has been circulating on the Malawi market since 2009. The publication also appears online on www.miningtradenews.net and social media platforms.

Contact address:

P.O. Box 206,

Lilongwe

Tell: +265 (0) 888 356 536/993 252 656

Export Development Fund

Export Development Fund (EDF) is a subsidiary of the Reserve Bank of Malawi. In the minerals sector, EDF buys gold and valuable gemstones from Artisanal and Small-scale Miners (ASMS). EDF’s head office is in City Centre, Lilongwe.

Contact Address;

P.O. Box 30063

Capital City

Lilongwe 3

Malawi

Tel: +265 (0) 1 772 720

Fax: +265 (0) 1 772 219

Essential Tours & Travel

Essential Tours and Travel Bureau are experts in domestic and international air ticket bookings, travel consultancy and visa processing support.

They are located at Golden Peacock Shopping Centre in City Centre, Lilongwe in ground floor room B2.

Contact address:

P.O Box 206

Lilongwe, Malawi

Tel: +265 1 770 709/659/694

Mobile: +265 999 308 436/888 300 133/995 645 749

Email: info@essentialtravelmw.com

MINERAL SECTOR CONSULTANTS

Chiwandama Geo-Consultants

Headed by veteran geologist John Nkhoma, who has experience working in government and private mining companies, Chiwandama is a top consulting firm in Malawi’s mining sector. The consulting firm is specialised in geological mapping, mineral exploration and evaluation, geotechnical assessments, mine design and environmental and social impact assessments for mining and quarrying projects. The Company’s headquarters is in Lilongwe.

Contact address:

Cell; 08888825277/0999288441

Email; johnnkhoma@yahoo.com

Akatswiri Mineral Resources

Akatswiri is a key player in Malawi’s minerals sector offering Geology, Geotechnical, Environmental and Social Impact Assessment, Mining and Construction services. The company which is managed by seasoned geologists Hilton and Josephine Banda has its headquarters in Pijo House, Zomba City.

Contact address;

contact@akatswiri.com

Beyond Consulting

Beyond Consulting are experts in strategy development, team building facilitation, organisation development, motivational speeches, conference/workshop facilitation and customer care services.

Contact address:

Eng. C.K Zulu

P.O Box 1620

Lilongwe, Malawi

Tel: +265 992 855 737

GEOCONSULT LIMITED

GEOCONSULT provides geotechnical services to the minerals sector in Malawi. They are specialists in a number of disciplines including; Geotechnical design which includes foundation design, work on soil and rock strength characteristics, borehole investigations, and technical work on slope stability.

They are also experts in material testing including triaxial testing used in excavations, shallow foundations, piles and deep foundations, earth retaining structures, diaphragm walls, anchors, slope stability, ground improvement, and design of embankments and earth dams.

GEOCONSULT also conducts one-dimensional consolidation of soil samples to enable engineers to ascertain the settlement characteristic of the soil over a given period.

Contact address:

Michael Sabelli-MSc

Managing Director

sabelli@geoconsult.cc

Conquest Geo-consulting

Conquest Geo-consulting are consulting geoscientists with experience in mineral exploration, mining, geology, environmental and social impact assessment, ground water resources, and occupational safety, health and environment.

Contact address:

Tel: +265 999 216 869

Email: igkamz@yahoo.com

Geomine Services

Geomine Services is specialised in minerals, geology, environment and corporate affairs consultancy.

Contact address;

Cell: +265 991019196

Email: geomineservices15@gmail.com

Marcs Media

Marcs Media is the leading media consulting firm serving Malawi’s mineral sector. They are experts in public relations, event organisation, marketing services, production of advertorials, editing, graphic design, social media promotion and printing services.

Cell: + 265 888 356536/993252656

Email: marcsmediamw@gmail.com

Equipment Suppliers

Farming & Engineering Services

Farming & Engineering Services (FES) are suppliers of heavy earth moving equipment used across various sectors including mining, agriculture, and construction.

Contact Address:

Kaohsiung Road,

Mandala,

Blantyre

Tel: +265 1 812 070/061

Equipment & Parts Suppliers

Equipment & Parts Suppliers (EPS) is the distributor of industrial mining, construction equipment and spare parts. The Company located in Area 4, Lilongwe is also specialised in irrigation and industrial diesel engines.

Contact address:

P.O Box 553

Lilongwe

Tel: +265 1 753 806/1 753 867

BrightMarg Engineering (PTY) Limited (BME)

BME are suppliers of industrial spares and equipment including butterfly valves, knife gate valves, slurry and multistage pumps, pressure gauges and transmitters, bearings and pillow blocks, electrical equipment, conveyor belts and rollers, HDPE and industrial rubber hoses, vilton and natural rubber sheets, hydraulic hoses, valves and pumps, stabiliser split sets, and resin anchored roof belts.

Contact address:

Ibrahim Pandor

Country Sales Representative – Malawi

Tel: +265 (0) 999 81 3724

Whatsapp: +265 (0) 88 385 6685

Email: sales@brightmarg.co.za

CAMCO Equipment Limited

CAMCO is a supplier of various equipment including generators, block making machines, concrete mixers, wheel front loaders, vibratory roadrollers and tippers. The Company’s headquarters and main shop is in Area 17 in Lilongwe and its Blantyre Branch is in Mkulumdzi House in Limbe Blantyre.

Contact address:

Lilongwe Head Office

Plot No. 338, along M1 Road, Area 47, P.0. Box 2646, Cell: 09999888678 0999737783

Blantyre Branch: L/C 13 Mkulumadzi House, Churchill Road, Limbe. Cell: 0996913737 or 0882160513

Atlas Copco

With its headquarters in Ginnery Corner, Blantyre, Atlas Copco offers complete compressed air system solutions. The Company also offers mining and rock drilling equipment at ex-factory prices.

Contact address:

Atlas Compressors and Tools Limited

P.O. Box 578

Blantyre, Malawi

Cell; +2659999 96 39 44

Select Agrispare Company

Based in Lilongwe, Select Agrispare Company supplies assorted equipment used in construction and agricultural processing.

Contact Address:

P.O Box 654,

Lilongwe

Email: bhavin84@gmail.com

Cell: +265 888033333/988033333

Tata Zambia Limited – Malawi Branch

Tata is a major supplier of tippers to Malawi’s minerals sector. They also supply a range of vehicles and offer back up support.

Contact:

Paul Kagame Road, Plot number 4/407, Bwaila, Lilongwe

Tel; +265 1 750 646

TK Motors

TK Motors are dealers in earth moving equipment parts and components.

Contact Address:

Off Malangalanga Road

Opposite Crown Lodge

P.O Box 1123

Lilongwe

Cell: +265 999912413

Email: kagwahelton@gmail.com

Thames Commercials

Thames Commercials are specialists in all drilling services with various sized holes ranging from small to large sizes up to 100mm, and blasting services. They also deal in jackhammer hiring, borehole drilling and flushing, concrete demolition services, and all other demolition and mining services.

Contact address:

Gibson M. Makutu (Managing Director)

Cell: +265993911570/+265888121519

Bearing Centre

With shops in both Blantyre and Lilongwe, Bearing Centre are suppliers of a large range of products used in the mining industry in Malawi.

Contact:

Blantyre: +265983705154

Lilongwe: +265983705153

Email: sales@bearingcentre.net

CEMENT SUPPLIERS

Shayona Cement Corporation

Shayona is a giant cement manufacturer whose brands include Akshar (32.5N), Thanthwe (42.5R) and Buildplast (MC 22.5x). These are specialty brands for different construction projects. The company also manufactures concrete blocks. Its headquarters is in Lilongwe and its state of the art cement manufacturing plant is in Kasungu.

Contact address:

P.O. Box 679

Lilongwe

Malawi

Tel: +265 1 752 791/752792

Email: sm@shayonacement.com

Cement Products Limited

Cement Products produces a range of popular cement brands including Tarzan – 42.5 MPA, Njati – 32.5 MPA and NKope – 24 MPA. These are speciality brands for different construction projects. The company has a modern cement plant at Njereza in Mangochi while its headquarters in in Chirimba, Blantyre.

Contact address:

Tel: Blantyre +265 999260

Mangochi/Monkey Bay +265994535133

Lilongwe/Mzuzu +265991024383

Coal Suppliers

Rukuru Mining Limited

Rukuru Mining Limited which owns Chombe Coal Mine in Chiweta in Eastern Rumphi is the largest producer and supplier of coal in Malawi.

The miner supplies coal in form of nuts (20-45mm), which is ideal for manually fed boilers;  peas (6-25mm) which is predominantly used in chain-fed boilers for steam production to power industrial processes; and grain/duff mix (0-6mm), which is used in pulverized coal fired boilers.

Production at Chombe Mine stands at an average of 15 thousand tonnes per year with the mine life pegged at over 25 years.

The uranium market looks promising for Malawi which hosts the Kayelekera Uranium Mine in Karonga currently on care and maintenance.

The former tenement holder Paladin Africa put the mine on care and maintenance following a drop in market prices for uranium due to the Fukushima Nuclear Disaster in Japan which resulted in the closure of many nuclear power plants in Asia reducing demand for the yellow cake.

But as reported in our lead article, Trading Economics indicates that uranium prices were at $91 per pound in early January, holding the surge from late 2023 that took prices to 16-year highs amid strong demand and risks to supply.

Volatile fossil fuel prices and ambitious de-carbonization goals drove the US and 20 other countries to announce that their nuclear power will be tripled by 2050.

The large bets on nuclear energy are led by China, which is building 22 out of 58 global reactors, while Japan restarted projects to increase nuclear power output, and a new reactor in Finland marked Europe’s first new facility in 16 years.

But currently the Malawi Government is negotiating a Mine Development Agreement (MDA) with the present tenement holder Lotus Africa to reopen the mine.

We agree with a mining expert and MD for Chiwandama Geo-Consultants John Nkhoma that with these positive developments on the uranium market, there is need for the Government and Lotus to agree that work to refurbish the plant at Kayelekera starts in readiness for production while the MDA is being finalised.

With such high prices, chances are very high that Lotus will make an investment decision to mine uranium at the site.

Just as Coordinator for Chamber of Mines and Energy Grain Malunga says in the article, the high uranium price is advantageous to both Government and Lotus implying both parties would like to see production resuming at the mine to rake in revenue.

It is sad that Malawi is currently struggling with foreign exchange shortages while it hosts this asset which can rake in millions of dollars through uranium sales.

By delaying production at Kayelekera, Malawi is also denying prospective employees an opportunity to work at the mine.

Besides, reopening the mine will have plenty of other benefits including offering business opportunities to locals including farmers who will be selling their produce to employees at the mine.

As a large scale miner, Lotus will also sign a Community Development Agreement which will ensure that it executes development projects proposed by the community.

The Lilongwe City Council has expressed concern over illegal sand and quarry mining within the city, which is leading to environmental degradation.

The Council’s Director of Parks, Recreation, and Environment Allan Kwanjana in an interview advised construction companies and individuals working on building projects to desist from sourcing the materials from illegal miners.

“The public is hereby informed that carrying out of sand and stone mining activities within the City boundaries is a serious offence punishable by law,” Kwanjana said citing relevant sections in Environmental Management Act and Mines and Minerals Act.

Kwanjana warned the miners to stop the operations immediately saying failure to comply will result in prosecution and heavy penalties.

“The government, through the Council, is dedicated to safeguarding the environment and the well-being of its citizens,” he said.

Kwanjana said the Council is undertaking proactive measures against the situation including identifying mining sites, issuing prohibition notices, deploying enforcement teams, and continuous monitoring to ensure compliance.

He said: “However, challenges persist, with resistance from miners leading to confrontations and confiscation of tools. The City Council has designated areas where mining is permissible, but some operators defy regulations, prompting forceful eviction.”

“Currently we are doing this in a number of sites along Lingadzi and Lilongwe rivers. We end up confiscating their working tools and where possible apprehend the culprits and take them to Police for prosecution,” he said.

Kwanjana lamented that small-scale miners involved in the malpractice operate without oversight leading to uncontrolled sand and rock mining along riverbanks, streams, and dambo land, causing land degradation and posing threats to infrastructure such as roads and bridges.

He said attempts to form committees for a coordinated solution have faced setbacks, as key stakeholders like the Ministry of Lands and the Ministry of Mining have been hesitant to address the issue.

“The environmental impact is evident, with land rendered undevelopable, mosquito breeding grounds formed, river courses diverted, and public infrastructure endangered. Current efforts targeting miners have proven ineffective due to their widespread presence in the city,” he said.

Kwanjana, therefore, said the Council is contemplating a shift in strategy to target buyers and customers in restricted areas.

“The impounding of trucks transporting materials from these zones and leveraging existing legislation to impose penalties and fees are suggested measures to cover enforcement expenses,”Kwanjana said adding that the situation calls for urgent collaborative efforts to curb unsustainable mining practices and preserve Lilongwe’s environment for sustainable development.

However, small scale quarry miners plying their trade in the City told Mining & Trade Review that Government needs to give them licenses and identify appropriate areas where they should be doing their trade.

“We need to be empowered with loans to procure machines and compete with mechanized miners. It is sad that foreigners who have adequate capital including Chinese have dominated the industry putting us out of business,” said a female miner.

Stakeholders in the extractive sector have urged the Malawi Government to finalize the Mine Development Agreement (MDA) for Kayerekera Uranium Mine with tenement holder ASX-listed Lotus Resources following soaring of uranium prices on the global market.

Trading Economics reports that uranium prices were at $91 per pound in early January, holding the surge from late 2023 that took prices to 16-year highs amid strong demand and risks to supply.

Volatile fossil fuel prices and ambitious de-carbonization goals drove the US and 20 other countries to announce that their nuclear power will be tripled by 2050.

The large bets on nuclear energy are led by China, which is building 22 of 58 global reactors, while Japan restarted projects to increase nuclear power output, and a new reactor in Finland marked Europe’s first new facility in 16 years.

“The developments were met with increasing threats to supply. Western utilities continued to voluntarily shun Russian uranium imports due to its invasion of Ukraine, while US officials moved closer to outright banning imports from the world’s top producer of nuclear fuel. Additionally, supply was also pressured by the military coup in Niger and troubles in Canadian mines.”

Commenting on the development, Mining expert John Nkhoma asked both the Malawi Government and Lotus Resources to allow the project to resume with preliminary works including refurbishing the plant though the MDA is yet to be finalized.

Nkhoma, a seasoned geologist and MD for a leading consultancy group Chiwandama GeoConsultants, said he is optimistic that what have remained in the agreement are just few steps that can be finalized in few days.  

He said: “To tell you something, the prices are very succulent. From my perspective, I think preparatory works for mining resumption should commence even though discussions for the MDA are in progress.”

“After all I do not think there are many issues to look into. Maybe they can start warming up the equipment and hiring the company that will be doing mining like Paladin did last time.”

Lotus Resources reported recently that if the MDA is signed by December 2023 as promised by the Ministry of Mining, the company will be able to identify off-takers, secure finances, commence plant refurbishment this year and resume production in 2025.

In a separate interview, Coordinator for Chamber of Mines and Energy in Malawi Grain Malunga said the uranium price hike is advantageous to both Government and Lotus, hence the call to respond to few issues remained in the MDA.

“It is to the advantage of both Lotus and Government. There are few issues for Government to respond to and move on with MDA conclusion,” said Malunga.

Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera concurred with Malunga but asked Lotus to ensure that they negotiate a fair deal with the Malawi Government to avoid mistakes made with the previous company.

“It is to the advantage of the government to conclude the MDA for Lotus but it is also important for the company to negotiate a fair deal for Malawi since the Paladin background,” Chabwera said.

The Ministry of Mining indicated recently that the outstanding issues for Lotus’s MDA include; loss carry forward from Paladin; waiver on interest on loans, non-resident tax and dividends; application on resource rent tax about to be concluded and; Lotus’s request of equity share to be at 10% and not at 15% as it was the case with Paladin.

In August 2022, Lotus Resources Limited released a Re-start Definitive Feasibility Study (DFS) that highlighted that Kayelekera ranks as one of the lowest capital costs uranium projects globally whilst also having the ability to quickly recommence production once a Final Investment Decision (FID) has been made.

The Kayelekera Uranium Project is the fourth largest uranium asset globally by historical annual production.

The mine, currently on care and maintenance, produced ~11MIbs U3O8 equivalent over five-years between 2009-2014 before the asset was shutdown to preserve its longevity due to a sustained low uranium prices in the aftermath of the Fukushima Nuclear Disaster which resulted in the closure of several nuclear power plants in Asia.

The Kayelekera deposit hosted a total mineral endowment of approximately 60Mlbs U3O8 equivalent when historical production (11Mlbs) and the current resource (46.3Mt at 500ppm U3O8 for 46.3Mlbs U3O8) are accounted for. 

The Company also owns the Livingstonia Uranium deposit (6.9Mt at 320 ppm U3O8) in Malawi. Combined Kayelekera and Livingstonia account for a total global Mineral Resource Estimate for the Company in Malawi to 49.4Mt at 475ppm U3O8 for 51.1Mlbs U3O8.

Kayelekera is a sandstone-hosted uranium deposit associated with the Permian Karoo sediments and is hosted by the Kayelekera member of the North Rukuru sediments of the Karoo. The mineralisation is associated with seven variably oxidised course-grained arkose units, separated by shales and chocolate-coloured mudstones.

Uranium mineralisation occurs as lenses primarily within the arkose units and, to a lesser extent, in the mudstone units. The lowest level of known mineralisation currently is at a depth of approximately 160m below surface. 

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Malawi Women in Mining (MAWIMA) and Women in Energy, Extractives and Mining (WEEM) have merged to form the Malawi Federation of Women and Youth in Mining (MFWYM), Mining & Trade Review has learnt.

Vice President of MAFWYM Ashley Simbeye Maleta said in an interview that the newly formed federation commences its operations this month.

Maleta said the Federation has been formed to fulfill the conditions set by the Southern African Development Community (Sadc) Women in Mining that require women in mining in a country to speak with one voice.

“MAFWYM has been formed so that MAWIMA and WEEMA should speak with one voice regarding issues of mining in Malawi. Though we have different strategic plans, we are all Malawian women and secondly we are in the same sector and it was just imperative that we have one body representing the country at any SADC fora or event,” she said.

Maleta, who was speaking on behalf of MAFWYM President Annie Kamanga, disclosed that the leadership of the new body comes from the merged associations and that there is balance of power though the new body is being treated as an independent registered institution.

“For its smooth growth, MAFWYM will incorporate cooperatives in the mining sector apart from individuals. Those looking for broader markets are free to join but there will be a fee. This will help in easy monitoring of the association and we are encouraging people who are self-driven and result oriented to join us,” said Maleta.

The vison for the new body is to create a platform for its members to achieve professional development and economic empowerment for accomplishments of entrepreneurial exploits, initiatives and development endeavours.

The new body also wants to forge a partnership with relevant stakeholders for women to achieve their optimal participation in the mining sector as well as increase women and youth representation in the mining industry as they help in the contribution of the SADC economic growth agenda.

“MAFWYM will help us speak with one voice in terms of identifying opportunities in a coordinated manner and facilitate integration, empowerment and success of African labourers and women and youth entrepreneurs in and around the mining sector,” reads a statement from MAFWYM.

It explains that the objectives of the new body include: provision of support, care and healing interventions to women and youth infected and affected by HIV/AIDS and to victims of gender based violence around mines through capacity building.

The body will also take a leading role in promoting and supporting the advancement of women in the mining sector, enhancing the entrepreneurial development of women and youth owned enterprises in mining as well as increasing members’ awareness of the legislative process and legislation relating to the mining industry.

The new body will also be involved in raising empowerment funds and funding for women and youth in the mining sector.

With just two weeks to go before the Investing in Africa annual mining indaba starts, Malawi’s Ministry of Mining is yet to solicit funds to attend the Indaba that takes place in Cape Town, South Africa.

This year’s indaba which will be held from February 5 to 8, 2024, aims to celebrate Mining Indaba’s 30th anniversary by taking a new direction and purpose under the theme of ‘Embracing the power of positive disruption: A bold new future for African mining.’

The indaba outlines the need for Africa’s mining industry to embrace a solution and a path towards positive change in order to become a meaningful global competitor as key minerals are required to drive a sustainable future for the planet.

For Malawi, the indaba serves as platform to market its mineral potential to potential mining investors around the global.

But in an interview, Public Relations Officer for the Ministry Tiwonge Kampondeni told Mining & Trade Review that the Ministry is still looking for funds to attend the event.

“We are expected to participate and at the moment we are looking for resources to enable us to attend the meeting this year,” said Kampondeni.

Last year, the Ministry failed to have a pavilion at the indaba similarly due to lack of financial resources.

Commenting on the development, National Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid blamed the Ministry of Finance for not being serious in funding some of the priority sectors highlighted in Malawi 2063 economic agenda such as mining.

Rashid said the country has huge mineral potential that requires marketing and that the mining indaba is a huge opportunity to woe investors into the country.

He said: “The challenge we have is that the Ministry of Finance has not been serious in financing the priority sectors that are expected to generate revenue and transform the economy.”

“Our Ministry of Finance, to be honest, has never stepped up to support the sector as other countries in the region have been doing.”

“The expectation that the private sector is going to develop the country is good but also the regulation and development of the sector require investment.”

“Attending international conferences like the mining indaba to at least market the country is what we need for companies out there to know what we have.”

Rashid said the Ministry is supposed to have a pavilion with all the Information, Education and Communication Materials (IEC Materials) on Malawi’s minerals sector.

He said: “We need to be serious with the sector and the Ministry of Mining should not be lacking resources to attend important events.”

“The lack of resources in the Ministry only shows that our government is not serious about mining,” said Rashid.

Apart from solid mineral potential, Malawi has petroleum and gas blocks that are vacant up to date that require to be marketed to investors.

Despite the absence of a government pavilion at the Indaba, multinational exploration companies working in Malawi such as Lindian Resources, Mkango Resources, Sovereign Metals and Lotus Resources always attend the Investing in Africa Mining Indaba.

Minister of Mining Monica Chang’anamuno has expressed concern over the spread of fake news about mining on social media.

”My ministry is concerned with the tendency by some unpatriotic people who are spreading false information especially through social media. We sometimes spend a lot of resources to investigate these unsubstantiated reports only to discover at the end of the day that they are lies,” Chang’anamuno said when she opened the Artisanal and Small-scale Mining Indaba in Lilongwe.

She urged media practitioners to report facts to avoid confusing the populace as well as investors.

“Sometimes we read reports in the media which are lacking and not fully investigated. We love you media practitioners as partners in development but whenever you are not sure about a subject, please seek clarification from my Ministry,” she said.

Chang’anamuno said if well nurtured and fully utilized to its maximum potential, the mining sector can ably compete with agriculture in contributing to the economy.

“Even the President His Excellency Dr Lazarus Chakwera is following with very keen interest developments in the mining sector and we know as a Ministry we have his total support,” she said.

First Principal Secretary in the Ministry Joseph Mkandawire in an interview expressed concern that the Ministry at one point hired a helicopter from Malawi Defence Force (MDF) to check illegal mining activities in Vwaza Game Reserve as reported on social media only to find out that the pictures being circulated were from one of the countries in West Africa.

“We spent millions to pay for fuel for the helicopter and even MDF personnel only to hit a blank wall. This malpractice of spreading false information must stop because sometimes it brings unnecessary fear to investors,” said Mkandawire.

Dr Charles Kankuzi, a lecturer at the University of Malawi, in his contribution during deliberations also touched on the issue of false information and misrepresentation of facts in mining sector.

He urged government and all stakeholders in the mining industry to take a leading role in information dissemination if the vice is to be nipped in the bud.

Former Minister of Mining Grain Malunga, who also graced the event, while commending the media for their role in developing mining said mining being a technical subject, there was need for specialization to avoid creating unnecessary tension through misreporting.  

Mining expert and former Minister of Mining Grain Malunga has called on government to promote recycling of scrap metals locally other than allowing people to export the metal.

Malunga observed in an interview that the exported scrap metals are the ones used to make iron bars and other metal components which the country purchases at a very higher price.

“We need to put things in order and see where we can generate more money and even jobs. By exporting the metals we are killing ourselves twice. You sell the metals cheaply and buy iron bars at a very exorbitant price. I think we can do better on this since we are not producers of iron materials,” said Malunga.

When put to him that government has been trying its best to put in place a ban on scrap metal exports, Malunga said the bans do not yield anything because they are always temporary

“The authorities must treat this issue with the utmost seriousness it deserves. We do not need temporary bans because it leads to the buyers circumventing the system and continuing trading in metals for copper, iron and aluminium production,” said Malunga.

When contacted for comment, Trade and Industry Minister Sosten Gwengwe disclosed that there are new procedures on the issue which government put in place but he could not divulge a lot as he was not in office.

“Let us talk after the holidays, but there are new procedures in place,” said Gwengwe.

Meanwhile, the emergence of scrap metal buyers on the local market is said to be one of the reasons some car breakers are now leaving the business as they are unable to compete with scrap metal exporters on the market

The scrap metal buyers are targeting old or accident damaged vehicles for breaking and then exporting the parts for recycling in China.

When car breakers purchase an old or accident damaged vehicle they dismantle the car and sell part by part while scrap metal buyers just sell the whole car in one piece for chiseling before exporting.

Mining and Trade Review investigations indicate that the trade of buying damaged or old vehicles is now even being done by foreigners with more money a thing which has automatically lead to soaring prices.

Lilongwe based veteran car breaker John Nkisi of MJ Multitraders   claimed that the growing demand for scrap metal in countries such as China, has distorted car breaking business.

 “We used to buy old or accident damaged vehicles at low prices but the story is different. If we identify a vehicle to buy we are outbid by scrap metal buyers. In the end some car breakers are closing shop due to stiff competition,” said Nkisi.

As a way of survival Nkisi is now diversifying his business by investing in agriculture because he claims that the future of car breaking is gloomy.

“It could have been good if more investors were allowed into mining of precious metals used to make aluminium and steel. By doing this the country could be getting enough forex while creating sustainable jobs instead of exporting metals bought on the market cheaply,” Nkisi said.

 Nkisi also urged his fellow car breakers to look into the issue of forming an association seriously so that they can be speaking with one voice.

“An association for car breakers will help us speak with one voice and easily lobby with authorities on how they can protect us. We are of the view that businesses which can be done by Malawians must be left in the hands of Malawians.

An association can help them have a strong voice for lobbying and dealing with issues including that of foreigners dominating the trade and export of metals with ease.

“If we sell car components bit by bit, we can make a lot of money because these scrap metal buyers get the stuff cheaply. Imagine a kilogramme going at K200, and when processed into bars we pay as high K6000 per kilogramme, this is sad,” said Nkisi.

Mining Solutions Africa says it is pursuing strategic measures aimed at fostering growth and collaboration within Malawi’s mining sector.

Director Fredric Josiya says in an interview the Group, which operates as either contractors or sub-contractors specializing in mining engineering, will in 2024 expand its portfolio in areas such as mine designing and blasting with an ambitious vision to start own mining operations.

“We are mining engineers, and our current projects involve diverse aspects of the mining process, from design to execution. Our next step is to have our own tenements, allowing us to engage in actual mining operations,” he says.

As part of its growth strategy, Mining Solutions Africa has established a branch in Mozambique, expressing keen interest in expanding their operations beyond Malawi’s borders.

Josiya urged the Malawi government to invest in mining sector through allocation of adequate funds in the budget for exploration projects, specifically targeting gold and lithium.

He said the government would profit from the investment by selling exploration results to potential investors.

Reflecting on the current state of the industry, Josiya acknowledged the challenges faced in 2023.

He said; “It has not been a good year for us, as construction activities have been passive. However, we have observed a quiet resumption of construction works by the government in the last quarter, which is a positive sign, considering they are the main buyers of our focal jobs.”

Mining Solutions Africa is currently engaged in preliminary prospecting in various areas, with a particular interest in gold and gemstones.

Josiya outlined the company’s approach, stating, “After the preliminary results are out, we intend to engage government entities to process various licenses for robust explorations.”

Discussing mining financing and economics in Malawi, Josiya expressed concern about the lack of expertise in key offices.

He said; “As a country, we are not doing very well in mining finances and economics. We have just received two cohorts of professional mining engineers in our tertiary education institutions, and we lack experts in key offices, including lending institutions.”

Josiya highlighted the significance of having professionals with robust knowledge in mining issues in key positions, both in government and lending institutions.

He said: “These professionals are crucial for scrutinizing possible mining projects and facilitating their financing, similar to the situation in our neighboring countries.”

“For Mining to develop in Malawi, there is a need for the government to invest more in exploration works, with the help of well-versed professionals who can take charge of vital areas including budget allocations.”