Mining & Trade News

Gold has been identified in various parts of Malawi, including but not limited to Mangochi, Kasungu, Nsanje, Lilongwe, Balaka, Ntcheu, and Zomba. These occurrences are largely alluvial or near-surface deposits, making them accessible with basic tools and minimal capital investment. As a result, gold extraction in many of these areas is dominated by artisanal and small-scale miners (ASMs).

Artisanal mining has grown rapidly in recent years, driven by rural poverty, unemployment, declining agricultural productivity, and limited livelihood alternatives. For many people involved, gold mining represents a survival strategy rather than a business venture. It provides immediate cash income in areas where formal employment opportunities are scarce.

At present, ASMs play a critical role in gold production in Malawi. In fact, they are responsible for the majority of gold extracted in the country today. However, most operate without licenses, using basic tools such as shovels, picks, and simple washing methods. Processing is often inefficient, leading to low recovery rates and unnecessary gold losses across many mining hotspots.

Furthermore, at a time when Malawi continues to struggle with foreign currency shortages, gold holds strategic importance beyond its export value. Many countries use gold to bolster national reserves, strengthen investor confidence, and stabilize their currencies. While Malawi is far from building significant gold reserves at present, formalizing gold production and trade is a critical first step toward this long-term objective. Artisanal and small-scale miners will continue to operate, and if their activities are not formalized, their contribution will remain invisible to the nation, and their livelihoods will remain unsafe.

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