Mining & Trade News

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.

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