Mining & Trade News

It is a new era for Malawi. Former President Arthur Peter Mutharika is back in power. Malawi Electoral Commission (MEC) declared Mutharika, presidential candidate of the Democratic Progressive Party (DPP)  for the 2025 tripartite elections that took place on September 16.

Mutharika emerged winner after scooping 3,035,249 votes representing 56.8%, defeating former President Lazarus Chakwera of the Malawi Congress Party who got 1,765,170 votes representing 33.8%.

In his campaign manifesto, Mutharika pledged to do away with all impediments to the growth of the mining industry in Malawi including; inadequate mineral exploration; lack of laboratory and monitoring equipment; inadequate dissemination of information to the general public; gaps in skilled personnel at all levels as well as lack of staff establishment in districts and border posts; and inadequate capacity in contract negotiations.

Mutharika said: “A strength of the industry is that it has available policy and legal mandates such as Mines and Minerals Act, Mines and Minerals Policy, Petroleum Exploration Act, Explosives Act, Artisanal and small-scale mining policy.

“Through this Manifesto, the Democratic Progressive Party government commits to: ring-fence all critical minerals under the State-Owned Malawi Mining Investment Company (MAMICO) and ensure that geophysical surveys shall be undertaken regularly to target mineral exploration for rare earth minerals, precious and base metals, and industrial minerals.”

“We will also put in place the relevant governance and mining legal frameworks and develop the skills that can support high value minerals.” To ensure that there is adequate energy to be used in mining, the DPP leader promised to encourage and facilitate mining companies to generate their own electricity.

Mutharika also promised to formalize and regulate artisanal and small-scale mining (ASM) while linking ASMs to appropriate technologies and anchor mining firms. He said: “We will also facilitate both establishment of markets for minerals and value addition in some of the minerals to enable them fetch higher prices on the market.”

“We promise to capitalize the Malawi Mining Investment Company (MAMICO) to the tune of not less than K500-billion to enable it promote the optimal development of the mining sector, properly manage the Government equity stakes in various mining ventures and effectively maximize national revenue and benefits from mining for Malawi.”

Despite its potential to significantly contribute to Malawi’s economic development, the mineral sector is currently encountering numerous challenges hence only caters for a staggering 1% to the country’s Gross Domestic Product (GDP).

While congratulating the newly elected president, Coordinator for Chamber of Mines and Energy Grain Malunga advised the DPP government to facilitate speedy development of the sector to utilize mining revenue for other key sectors. Malunga said the mining sector has high potential of developing the economy hence Government should consider changing Agriculture, Tourism and Mining strategy to Mining, Agriculture and Tourism (MAT).

He said: “First and foremost, the new administration needs to understand that the most sustainable way of promoting development of this country is not to borrow consumption money from multilateral institutions, but to facilitate speedy development of the mining sector and utilise mining revenue for agriculture productivity, health and tourism development.” “Change ATM to MAT because mining has the ability to create wealth for agricultural productivity and tourism development, and manufacturing.”

“ASM subsector requires serious attention especially in gemstone and gold where collaborative efforts are required among exploration companies, government and local councils.”

Malunga also said to ensure that security and peace are not compromised in the sector, there is a need for strong and efficient Mining and Mineral Resources Regulatory Authority and Malawi Mining Investment Company, which have the ability to turn around Malawi’s economic forunes.

In a separate interview, Coordinator for Natural Resources Justice Network (NRJN) Biswas Ishmael advised the new president to ensure that Malawi has a Community Development Agreement (CDA) template that all mining investments can follow, while simplifying the process for ASM operations and providing the ASMs with necessary support to enable formalization of their activities.

Ishmael emphasized the need to avoid bringing in people from other areas to register as cooperatives in mining districts, while deliberately sidelining the locals engaged in the same activities.

He said for instance locals from Makanjira were promised to be organized and supported to register a cooperative, but the cooperative that was registered for that area is owned by people from other districts.

Ishmael said: “In opaque contracting and licensing, the new president should improve the handling of negotiation, licensing and Memorandum of Understanding (MOU) development.”

“The president elect should analyse the beneficial aspect of using the stipulation of the law against a mining development agreements. “Strengthening the recently developed mining company is essential. There is need for substantial and strategic support to be given to the state-owned mining company and ensure that it is participating in the large-scale mining investments.”

“If funds can be realized, even through borrowing to make the company start its own investment, specifically in one of the critical minerals, it can be a good development.”

He also urged Mutharika to create a provision that will collect, guide and track utilization of revenues from the mining sector.   Ishmael also said there is a need for intensifying sensitization or awareness intervention, borrowing a leaf from how the agricultural sector operates.

Large and medium scale mining investors have been complaining of a number of problems that are affecting their operations in Malawi including lack of adequate power and transport infrastructure. and government delays in issuing permits and licences.

The Kayelekera Uranium Mine in Karonga that was relaunched by former President Lazarus Chakwera this year is the only operating large scale mine in the country. Lotus Africa, a subsidiary of ASX-listed Lotus Resources, has reopened the mine after it was mothballed in 2014 by the previous tenement holder Paladin Africa due to low prices of the yellow cake on the global market in light of the Fukushima Nuclear Disaster that resulted in closure of many nuclear plants in so doing knocking down the global demand and prices of uranium. The prices of uranium have improved over the years which has necessitated the opening of the mine.

The other potential projects that are expected to move to production stage in Malawi include Kanyika Niobium in Mzimba, Kasiya Rutile-Graphite in Lilongwe, Songwe Hill Rare Earths in Phalombe, and Kangankunde Rare Earths in Balaka.

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