Mining & Trade News

Local artisanal and small-scale miners (ASMs) have welcomed the Reserve Bank of Malawi’s increase of the price that it offers in buying gold from local miners. The Central Bank buys gold from local ASMs through its subsidiary Ex port Development Fund (EDF), which has announced an increase in gold pur chase price from Mk 400,000 to Mk 570,000 for gold with 95% purity or higher.

In an interview with Mining and Trade Review, Percy Maleta, President of the Federation of Artisanal and Small Scale Mining in Malawi (FAS MIM) acknowledged that the price hike signals a move towards better market access and higher incomes through value addition and structured support.

Maleta explained that by offering better prices, the Central Bank is fight ing gold smuggling by enticing min ers who sell gold to smugglers due to better prices.

“While EDF provides a formal channel, many miners still prefer in formal routes due to better prices, quicker payments, and fewer barriers, which encourages smuggling.”

MwaiZulu, Interim Treasurer of the Gold Mining Association (GMA), echoed Maleta’s concerns urging EDF to expedite processing of payments to the gold dealers.

“The price adjustment only helps if the price is competitive and payments are quick. If not, miners will still prefer informal buyers.” he said. Zulu said EDF is not yet the first choice for local miners hence there is a need for the institution to sensitise the miners in gold mining hotspots across the country about its structured market.

He also urged government to create a more favorable environment for ASMs by simplifying licensing and establishing gold buying centers closer to the mining hotspots.

Maleta also called for strengthening formal markets such as EDF, improv ing licensing and regulation, investing in processing and value addition, and providing technical and financial sup port to miners.

There are a number of informal ASM gold mining hotspots that are sprouting across the country with for eign buyers flooding these sites to buy the precious mineral.

Group Village Headman Saiti of Makanjira told Mining & Trade Re view in an interview that some miners from foreign countries are now invad ing the Makanjira and Namizimu For est gold mining site with equipment such as excavators.

ASM illegal gold mining is result ing in a number of cross-cutting issues in the communities including death due to unsustainable mining practices, child labour, drug and alcohol addic tion, marriage breakages, increase in school drop-outs, and early pregnan cies

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