Mining & Trade News

• Security officers detaining mineral samples destined for research laboratories

Malawi Government’s ban on the export of raw minerals has negatively impacted exploration projects for various minerals with security agents detaining samples destined for high-tech research laboratories in foreign countries.

Players in the sector have, therefore, asked the Malawi Government to expedite drafting of  terms of reference for the ban and sensitise the country’s security apparatus including the Immigration Department and Malawi Police Service to save exploration projects from collapsing as Malawi does not have internationally accredited laboratories to analyse mineral samples.

Local consulting firm H & B Consulting, which offers environmental and geological consulting services, says in a Press Statement that there is an urgent need for Government to address this practical challenge which is affecting students, researchers/scientists, and exploration companies and their agents.    

Executive Managing Partner for the group states: “Malawi currently lacks internationally accredited mineral testing and analytical laboratories capable of producing globally recognized analytical results. Consequently, mineral samples, sometimes as little as 50 grams per sample, are sent to certified laboratories abroad for geochemical, petrographic, mineralogical, metallurgical, or environmental analyses. These samples have no commercial value and are strictly for scientific, academic, and exploration decision making purposes; besides Malawi Revenue Authority (MRA) collecting royalty on the same.”

“Arguably, in the absence of clear operational guidelines, regulations and processes, these scientific sample movements have been interpreted as “exportation of raw minerals,” resulting in halted research activities, delays in scientific studies, and suspended exploration programs. These unintended consequences risk slowing the sector’s development and undermining the very goal of value addition, which requires accurate scientific data before minerals can be processed locally.”

“As provided for under Section 4 of the Executive Order, which mandates the Ministry responsible for Mining to develop regulations, guidelines, and procedures for implementation, We at H&B Consulting humbly urges the Ministry to urgently develop and gazette clear procedures, regulations, and processes that distinguish prohibited commercial exports from scientific and analytical sample movements. These guidelines will ensure that the Executive Order achieves its intended purpose without disrupting the research, exploration, and academic activities that ultimately support mineral beneficiation, investment readiness, and national economic growth.”

Managing Director for Green Exploration, which is a subsidiary of ASX-listed DY6 Metals, Troth Saindi said samples from the company destined for a laboratory in South Africa that were sent through DHL last month remained detained by security agents at Bakili Muluzi International Airport in Blantyre. Saindi explained that he received a letter from the Malawi Mining and Mineral Resources Regulatory Authority explaining that prohibition of sample exports was not part of the Executive Order to ban raw mineral exports, which he presented to the authorities but were adamant to release the samples in so doing derailing the whole exploration venture.  

“I plead with the Malawi Government to immediately address the situation to allow progress of exploration projects because without exploration, there will be no mining.” Green Exploration is prospecting for critical minerals such as rare earths and niobium in several sites across Malawi including Machinga and Tundulu in Phalombe. Minister of Natural Resources, Energy and Mining Jean Mathanga said in an interview with state broadcaster Malawi Broadcasting Corporation that she met management of the MMRA and Malawi Mining Investment Company (MAMICO) to task them to formulate ways of implementing the mineral export ban.

Outgoing MMRA Director General Samuel Sakhuta has, meanwhile, sent a letter to key stakeholders including the Malawi Defence Force, the Malawi Police Service and Malawi Revenue Authority clarifying that exportation of samples for laboratory analysis is excluded from the ban. Sakhuta, who has been been replaced at MMRA by former Director of Mines Mphatso Chikoti  says in the letter that value added mineral products such as lime produced by Zalewa Lime Company are also excluded from the ban.

“Therefore, all officers responsible for controlling exports at exit points are requested to adhere to this clarification so that there is total compliance as required by the Law,” reads the letter. Coordinator for Chamber of Mines and Energy Grain Malunga said he engaged the Malawi Revenue Authority and MMRA on the issue.

“All is clear now about export of samples from exploration projects as long as they have all the necessary documentation from MRA and MMRA,” he said. The export ban has also impacted artisanal and small-scale miners who export gemstones for value addition in foreign countries as Malawi’s only lapidary operated by Small and Medium Enterprises Institute (SMEDI) lacks some essential equipment. President of the Federation of Artisanal and Small-scale Miners Percy Maleta lamented the implementation of the ban without prior stakeholder consultations saying current capacity and infrastructure are insufficient for large-scale processing and marketing of finished products.

“ASM should continue exporting rough minerals while gradually building capacity through training, technology transfer, and market development. Premature restrictions on rough exports could limit growth,” Maleta said. Mutharika states in the Executive Order that it is aimed at ensuring the sustainable development and utilization of the country’s mineral resources, and to promote the growth of the national economy through value addition and industrialization.

“The purpose of the Executive Order is to prohibit the exportation of raw minerals, promote local value addition, and ensure that our mineral resources contribute to the economic development and prosperity of our Malawi, “he says.

He explains that the order, which came into effect on October 21 this year shall apply to all minerals extracted in Malawi including but not limited to uranium, rare earth elements, niobium, graphite, tantalum, bauxite, coal, limestone, gemstones, heavy mineral sands, vermiculite, phosphate, pyriterutile, gold, diamonds and copper.

“The provisions shall not apply to minerals that have been processed, refined or value added in Malawi in accordance with the laws and regulations governing the mining sector,” states the Executive Order.

Leave a Comment

Comments