Mining & Trade News

BY FRANCIS TAYANJAH-PHIRI

Construction of Likoma Port is scheduled to finish by November 30 this year, when it will immediately start operating, the Marine Department says.

In an interview with Mining & Trade Review, the Department’s Chief Surveyor of Vessels Wilson Luwani rated the project at 85% completion.

He said the facility will be capable of handling two big ships at a time.

Luwani explained that currently there are ongoing construction works taking place for a fence, warehouse, and immigration/customs offices; and immediately after this, the port will be ready for operations.

“Apart from the docking bay, the facility [port] will have a warehouse, storage facilities, waiting shelter, jetty, and cargo handling equipment, among other things,” said Luwani.

He said the port was designed in a manner that it would not be prone to floods, as is the case with the Nkhata Bay one, which is currently submerged in water, following this year’s rising of water levels in most parts of Lake Malawi.

“This port was designed to handle the highest water levels ever recorded,” remarked Luwani.

However, he said the construction of the Port was not without challenges, citing, among others, shortage of fuel supply at the early stages of construction works.

“Other challenges were; water levels making it difficult to do works under the main platform and weather patterns including heavy winds on the lake which made it difficult to supply building materials,” said Luwani.

He said the other challenges included difficulty to find locally qualified personnel to do special professional works for instance underwater works, and the devaluation of the Malawi Kwacha along with inflation, which kept the contract sum rising.

Luwani disclosed that the total cost of this project was initially projected at MK10 billion, but rose to MK22 billion, due to the stated factors.

“The Government of Malawi funded the project, and the contractor is Mota-Engil,” he said.

Luwani stated that the port, once operational, will impact positively on the development of the Island district by ensuring improved efficiency in cargo handling.

“This will translate into increased trade operations; as it will enhance time saving and low operational costs with the jetty in place,” he said

By Modester Mwalija

There is substantial progress in a number of energy projects that are being implemented in Malawi in order to increase availability of power in the country, which will help a number of mining projects currently struggling to roll out operations due to lack of power to pass the feasibility test.

This is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report says that the government handed over the Kam’mwamba Coal-Fired Power Project to the Electricity Generation Company (EGENCO), after unfulfilled expectations from the EXIM Bank of China. EGENCO has since revised the feasibility study, estimating the project cost at US$600-million.

“The project’s completion, anticipated by 2030, is dependent on securing a joint venture for EGENCO to partner with a 50:50 possible share of the project cost between EGENCO and the joint venture partner,” reads the report.

The report highlights that despite some setbacks, the Mozambique-Malawi 400kV Interconnector Project is now expected to come online in October this year.

The report reads: “The progress achieved at the end of the 2023/24 financial year include compensation pay-outs for Project Affected Persons on the Malawi side and the revision of the Power Purchase Agreement with Electridade de Mozambique (EDM), which will increase power imports from 50MW to 120MW when the project is completed.”

The report also notes that in the period under review, ESCOM and Zambia Electricity Supply Corporation Limited (ZESCO) initiated a joint feasibility study, including Environmental and Social Impact Assessments and a Resettlement and Compensation Action Plan, on the Malawi-Zambia Interconnector which is aimed at integrating Malawi into the Southern African Power Pool (SAPP) by connecting to Zambia’s electricity grid.

“The initial phase will inject 50MW into Malawi’s grid, with the potential for future increases. Both companies have signed the Project Implementation Framework, marking a critical step towards realizing this project,” reads the report.

The report also says that the government is implementing the Mpatamanga Hydropower Project, set to deliver 361MW of clean energy under a Public-Private Partnership (PPP) arrangement.

The achievements in the 2023/24 financial year include incorporation of Mpatamanga Hydro Company Limited; ongoing negotiations for Power Purchase Agreements; Completion and approval of the Project Freeze Designs, continuation of environmental studies; and development of Resettlement Action Plans scheduled for completion by May, 2024.

The report says the government is also prioritizing the rehabilitation of the Kapichira Hydropower Station, which suffered extensive damage from Tropical Storm Ana in January 2022.

Funded by a $60 million World Bank grant, EGENCO successfully repaired all four damaged machines, restoring 129.6MW of power.

The report reads: “Phase I of the restoration is nearly complete, paving the way for Phase II, which will involve constructing a more resilient structure to protect against future storms. This project is crucial for safeguarding Malawi’s energy security, with completion expected by May 2027.”

On integrating solar energy into the national grid, the report says Malawi is implementing a 20MW Battery Energy Storage System (BESS) at the Kanengo substation in Lilongwe. The project, funded by a US$20-million grant from the Global Energy Alliance for People and Planet (GEAPP), reached financial closure in July 2023.

It says installation is expected to be completed by March 2025, providing essential additional services to stabilize the grid.

Furthermore, the report indicates that EGENCO is advancing the Nanjoka Solar Power Plant in Salima, a project expected to contribute 50MW to the national grid by 2029. Following the completion of feasibility studies and environmental assessments, construction began with the installation of an initial 10MW. The project, which had its groundbreaking ceremony in November 2023, marks a significant step towards diversifying Malawi’s energy sources.

 As detailed in the report, EGENCO also plans to double the capacity of the Wovwe Hydropower Station from 4.5MW to 9MW. In 2023, the Malawi Environmental Protection Authority (MEPA) approved the extension.

“Negotiations for the Power Purchase Agreement are nearing completion. Once finalized, construction will commence using EGENCO’s internal resources, further strengthening the country’s energy resilience,” states the report.

These projects represent a crucial investment in Malawi’s energy future, addressing both immediate needs and long-term sustainability goals. The successful completion of these initiatives will significantly enhance the country’s power generation capacity, reduce reliance on imports, and improve the overall stability of electricity.

The Ministry of Energy expects planned investments of approximately US$3.5 billion in order to meet the estimated energy demand by 2040.

By Marcel Chimwala

CEO for Australian company Lindian Resources, Alwyn Vorster, said during a recent visit to Malawi that the Company is still aiming to have financing confirmed within the next few months, which should allow full scale mine construction at its Kangankunde Rare Earth Project in Balaka to commence later this year.  The Company has already completed numerous preliminary development activities at the project site since it became involved in late 2022. That includes extensive drilling and sampling programs as well as road and other infrastructure development. The Kangankunde Project is located 90km north of the city of Blantyre and 15km south of Balaka.

In June 2024, Lindian announced the appointment of Vorster, who brings 30 years of mining project development experience, having previously held CEO positions with many Australian Stock Exchange-listed companies. For the past year, he was also a non-executive director on the board of Lindian.

Vorster said the Kangankunde Project’s large and high-grade orebody makes it one of the best rare earth projects under development across the world. He said: “Lindian released a feasibility study on the Stage 1 development in early July. Results of the study showed that the Kangankunde Project is technically and financially robust and can deliver attractive future financial returns.”

“The feasibility study now paves the way for Lindian Resources to secure financing (which includes US$40 million pre-production capital cost) for the Stage 1 Kangankunde Project development.”

Vorster explained that when in operation, the Kangankunde Project will provide significant economic and social benefits to Malawi in the form of taxes and royalties, jobs and business opportunities, and social and infrastructure investment while additional flow on benefits will be generated from bringing mining investment and development to the region.

The Kangankunde Project is rich in neodymium (Nd) and praseodymium (Pr) rare earth elements. Nd and Pr are a critical component in the production of permanent magnets. Long-term demand outlook for rare earths will continue to be dominated by magnet applications. This growth will be driven by demand for renewable energy and electrified transport applications. As such, the magnet market will be the largest growing sector and it is forecast that it will account for almost 60% of the NdPr market by 2050.

He observed that the project has a bright future due to this potential growth in the rare earth market, the availability of favourable transportation infrastructure in the project area and the good relationship and support that the project is getting from the Malawi Government and local communities.

Since taking over as CEO, Vorster has accompanied the Chairman of Lindian, Mr Asimwe Kabunga, several times to Malawi; meeting with government, community members and local Lindian employees. Vorster commented, “Mr Kabunga has been instrumental in securing the project ownership for Lindian and advancing development, and he will remain our most senior and key contact with most senior government and community people”. I am also pleased to say that we have in the last few weeks strengthened our in-country capabilities by appointing Trevor Hiwa as General Manager Malawi (Country Manager), reporting to myself. He was, until now, a civil engineering consultant designing all civil works and mine support infrastructure at Kangankunde.  Trevor will be our most senior person in Malawi and be accountable for managing key functions of Kangankunde tenure and approvals, government and community relations, legal & compliance and the Malawi corporate financials.  Chrispine Ngwena moves from his current consultancy role to become our full time Manager Community and Government Relations, reporting to the GM Malawi. He will continue the outstanding work to date of managing sustainable relationships between Lindian operations and the Kangankunde Community, local and central Government.  We will also look to appoint financial and compliance related local employees in the near future.”

In terms of operations, the proposed Stage 1 development can have a mine life of 45 years based on current Ore Reserves.  The operation will involve an open pit mining operation and processing plant to produce ~15,300 tpa premium concentrate with 55% Rare Earth Oxide (REO) grade. The clean process of gravity and magnetic separation in the process plant means that water can be recirculated to the plant, thereby reducing the total water requirement. Up to 3MW power will be provided by grid power connection (hydroelectricity) with back up on-site diesel power generation. The Kangankunde Project is located close to good supporting infrastructure which includes proximity to the main M1 highway, rail lines to ports and high voltage transmission lines.

Vorster said: “Unlike many rare earth projects, the Kangankunde Project’s concentrate products and tailings will contain very low levels of radioactive materials and other impurities. This makes the handling of the ore and waste easy and safe and enables the product to be shipped to most potential buyer countries without restrictions.”

The development schedule aims to commence main construction in fourth quarter of 2024 and commissioning of the processing plant late 2025 and first sales in first half 2026.

Vorster said the Kangankunde Project will require more than 200 full time equivalent site roles during the construction phase, and more than 100 full time equivalent site roles during the operational phase. The Company aims to employ and train many of these roles from the local Malawi labour pool.

He also said the Kangankunde Project has the support of and will significantly benefit the local economy and rural community by promoting sustainable growth, creating jobs, and investing in the community while respecting traditional Malawian customs.

Vorster said: “Lindian has been active in the local community, providing financial support for a remote policing unit and assistance to the local schools. It has worked with the local community and government on a resettlement process for community members affected by the Kangankunde Project’s development.”

“A Community Engagement Plan (CEP) has been developed in collaboration with the local government, traditional leaders, communities, organisations, and women's groups in the project area. The CEP establishes a committee comprised of community leaders, local community representatives, Government District Council officials, and senior leadership of Lindian. It will act as a forum for continued community engagement and issues management.”

“Infrastructure upgrades are also planned, including upgrading a 5km unsealed road from the Kangankunde Project site to the M1 Highway into an all-weather road to enhance safety and accessibility. Communication infrastructure implemented for the Kangankunde Project will also improve community access to reliable communications.”

By Modester Mwalija

Since 2021 the mining sector has experienced steady growth due to a supportive legal and regulatory environment that welcomes both local and international players, this is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report states that in 2023, the Mines and Minerals Act of 2019 was repealed to accommodate the establishment of the Mines and Minerals Regulatory Authority (MMRA).

“The MMRA has been established and has been assigned the licensing, inspection, and geological surveying functions to improve regulation and enforcement in the mining sector,” the report reads.

The report says that the Ministry launched its strategic plan for 2022–2027 and began its implementation, reaffirming the Ministry’s mission and strategic objectives.

“One of the initiatives implemented under the Strategic Plan was the completion of a mineral processing and research laboratory in Lilongwe and the installation of key equipment.”

The report further says as of December 31, 2023; the Ministry of Mining had collected 2023/24 revenue amounting to MK747,012,957.80. In total, the Ministry was expected to collect MK1,002,336,233.75, representing 3 percent growth over 2022/23 collection, largely due to increase in the number of mining license applications and revenue enhancement.

During the year under review, the Ministry of Mining, granted 546 various licenses to prospecting mining companies and individuals. 

“378 licenses were given to small scale operators namely 61 Non-Exclusive Prospecting Licenses, 168 Small-Scale Mining Licenses, 149 Reserved Minerals Licenses and 164 licenses were given to larger and medium operators including 106 Exploration Licenses, 28 Medium-Scale Mining Licenses, 1 Large-Scale Mining License, 32 Retention Licenses, 1 Reconnaissance License,” reads the report.

However, the report notes that despite these positive developments, the mining sector currently contributes only 1 percent to the national income as the sector still faces challenges including unreported income, smuggling, environmentally damaging practices, and health hazards associated with substandard mining methods, which pose significant concerns.

“Limited power supply, bad road and railway infrastructure, and other economic constraints elevate overhead and production costs, deterring investors and hindering sector growth,” says the report.

The report notes that to unlock mining sector growth, further policy reforms are necessary including streamlining the legal and regulatory framework, optimizing administrative procedures, enhancing oversight capabilities, and fostering local participation.

“Establishing robust support structures like reliable infrastructure and power supply is crucial to attract and retain investors,” it says.

The report also acknowledges that the ongoing projects in the form of strategic roads, railways, and power plants, which started in 2022/23 financial year, offer a positive outlook for the coming year.”

In the 2024/25 Fiscal Year, the government plans to undertake a number of interventions to foster productivity, transparency, and accountability in the sector so that it contributes significantly to inclusive wealth generation and economic growth in line with Malawi 2063.

By Modester Mwalija

Indications on the ground show that the Ministry of Mining is missing its target in implementing its 2022-2027 strategic plan on the aspect of empowering Artisanal and Small-scale Miners (ASMs) who are encountering persistent challenges that threaten their ability to contribute effectively to the country’s economy.

The strategic plan aims to increase investment in the mining and upstream petroleum sector by adopting the Integrated Rural Development 2017 approach, which aims to promote entrepreneurship and environmentally sustainable mining practices among ASMs.

“By the year 2025 targeted ASMs should be trained in mining and value addition and formalized into recognisable cooperatives,” reads part of the plan

However, our investigations show that ASM operators continue to struggle with issues ranging from regulatory barriers to financial limitations, potentially disrupting these efforts.

President of the Federation of Women and Youth in Mining Flore-Annie Kamanga says in an interview that while the strategic plan outlines a clear vision, the implementation process is stumbling due to the complex regulatory environment.

“The current legal framework is not ASM-friendly. The high cost of licenses and the bureaucratic problems make it nearly impossible for small-scale miners to operate legally. This situation forces many ASM operators to work informally, putting them at odds with authorities and limiting their access to formal markets,” she says.

Kamanga also highlights the problem of lack of access to finance which impedes ASMs’ ability to invest in modern equipment and technologies.

“Without adequate financial support, miners are forced to use rudimentary tools that are not only inefficient but also hazardous,” she says.

She says lack of access to established markets is another critical issue as many ASMs frequently face challenges in accessing fair markets and are often exploited by middlemen who offer low prices for their minerals.

Kamanga advocates for better market structures and value addition initiatives, emphasizing that “there should be systems in place to provide real-time market information and support for forming cooperatives to enhance bargaining power.”

Noah Alfred, an artisanal miner, provides a ground-level perspective on the challenges. He dwells on the financial constraints faced by small-scale miners, stating, “The lack of adequate funds for running a small-scale mining operation is a significant barrier. Despite government pursuing strategies like the Agriculture, Tourism and Mining (ATM), ASMs are not fully recognized or supported.”

Alfred also expresses concern over government’s restrictions of ASMs to use heavy machinery, which he believes hinders progress.

“The use of heavy machinery should be allowed as it would enhance productivity and efficiency. Relying on shovels and picks is too primitive and limits growth,” he says.

By Modester Mwaija

As Malawi approaches the half way mark of the period for the implementation of 2022-2027 Mining Strategic Plan, concerns are growing over the sector’s slow progress. Chamber of Mines and Energy in Malawi and Civil Society Organisations (CSO’s) express concern that deep-rooted challenges are delaying efforts to move the country’s mining industry forward.

The strategic plan was designed to transform the mining landscape and boost economic growth. The plan sets forth a range of objectives aimed at increasing production, enhancing transparency, and ensuring that local communities benefit from mining activities.

“The strategic plan’s mission is to coordinate, facilitate and promote participation of all stakeholders in the sustainable development, utilization and management of mineral and petroleum resources for socioeconomic growth and development,” reads the plan

Grain Malunga, Coordinator for the Chamber of Mines and Energy, says the mineral sector is developing at a very slow pace due to insufficient financial and human resources.

“We still have not seen significant progress in establishing key institutions like the Mining Development Corporation and the National Mining Company and there has been no specific targets in investments, exploration and mining,” Malunga says.

He also says the sector is facing infrastructure challenges including lack of access to reliable energy and unreliable transport networks. 

Malunga, however, acknowledges that the current regulatory frameworks are adequate to promote transparency in the mining sector. These include Mines and Minerals Act 2023, Access to Information Law and Anti-Corruption Act.

Kennedy Rashid, National Coordinator for Natural Resources Justice Network (NRJN), raises concerns over the environmental impacts of unregulated and illegal mining activities, particularly in areas like Makanjira where some parts of the Namizimu forest have been cleared, and the chemicals that are being used by Artisanal and Small-scale Miners (ASMs) in Nkhatabay and Nkhotakota in streams where gold is being panned.

“The main concerns on the environmental side include deforestation, water pollution, air pollution, land degradation, and siltation,” says Rashid.

He says the challenges can only be addressed if the Ministry of Mining is financed and adequately staffed to carry out its functions and provide services to all scales of mining activities.

“There is a need to mainstream training or capacity building on responsible mining, and increased inspections and audits by both the Environmental Protection Authority, Malawi Human Rights Commission, and Mining Regulatory Authority,” says Rashid.

He also calls on government to mainstream open contracting, beneficial ownership disclosure, revenue transparency, environmental and social impact accountability.

“This can best be achieved if we could mainstream the Extractives Industry Transparency Initiative (EITI) standards and the African Mining Vision framework (AMV). We need to localize both the AMV and EITI standards but in consideration to our context thus in respect to our laws and regulations,” says Rashid.

Despite the current challenges, the future of Malawi’s mining sector appears promising, as stakeholders continue to push for reforms and improvements that will unlock the full potential of Malawi’s mineral wealth.

By Modester Mwalija

The Lilongwe Water Board (LWB) is experiencing significant financial losses, amounting to an estimated MK 1.4-billion each month, due to nonrevenue water (NRW). This substantial loss highlights the ongoing challenges faced by the Board as it strives to manage water supply in the capital city.

NRW, which refers to water that is produced but not billed—often due to leaks, theft, or inaccuracies in metering—has long been a problem for LWB for quite a long time.

Public Relations Officer for Lilongwe Water Board Chisomo Chibwana emphasized the gravity of the situation in an interview, stating, “The costs of NRW arise from both operational costs of production and revenue losses from water that is lost before it reaches the consumer.”

Chibwana said in response to the challenge, LWB has launched a 5-year NRW reduction strategy, which is a key component of their 2020-2025 Strategic Plan. This strategy serves as a roadmap to systematically reduce the volume of lost water.

“We have intensified monitoring and evaluation efforts to ensure effective implementation and progress tracking,” she said.

She explained that a crucial part of this strategy is the creation of District Metered Areas (DMAs) as these DMAs break down the water distribution network into smaller, manageable areas, making it easier to identify and address the most significant sources of water loss.

“So far, 123 DMAs have been established, and the Board has also invested in a Supervisory Control and Data Acquisition (SCADA) system, which helps detect potential leakages in real-time,” said Chibwana.

She further said that LWB has conducted training programs to enhance the skills of its technicians in managing NRW. These initiatives are supported by an ongoing Japanese International Cooperation Agency (JICA) funded project aimed at strengthening the Board’s capacity in this area.

However, Chibwana states that the Board’s efforts have not been without challenges as the creation of DMAs, along with ongoing road upgrading projects in the city, has led to increased water losses due to interconnection works and pipe flushing exercises. These activities have also resulted in frequent water supply interruptions, reducing the volume of water billed to customers.

Despite these setbacks, the LWB’s strategy has yielded some positive results as since its inception, the NRW rate has decreased by 2%, bringing it down from 42% to 40%.

“As the LWB continues to refine and implement its strategy, it remains committed to reducing these losses and improving the efficiency of Lilongwe’s water supply system,” she said.

By Modester Mwalija

Local quarry miner Chawezi Resources has rehabilitated a 9km access road to its quarry mine in Nathenje in Lilongwe, which is serving the local community besides making it easy for its customers to reach the mining site.

Chawezi has contracted local construction firm Plem Construction to carry out the road construction works, which are part of its major infrastructure upgrade at the quarry mine.

Chawezi Quarry Manager Leckson Chigoneka told Mining & Trade Review in an interview at the site that the Company’s commitment to corporate social responsibility (CSR) is evident in its ongoing efforts to improve the lives of those living near its operations.

“As part of our CSR programme, we have executed several projects including providing access to clean water, which was a critical need in the area and improving road accessibility to help people travel more easily from the village to town”, Chigoneka said.

The miner supplies tap water sourced from underground to households close to the site.

In addition to these efforts, Chawezi Quarry has been involved in environmental conservation through tree-planting initiatives.

 “We are committed to operate in tandem with environmental laws and regulations. Planting trees is one of the ways through which we are contributing to the sustainability of the environment around us,” Chigoneka said.

Meanwhile, Chawezi Resources is working on installing an asphalt plant at the mining site, a project which will be completed in three months time. Chigoneka described the development as a major milestone to the nation as it will play a major role in the completion of road projects in the country.

He said: “The new asphalt plant marks a significant step forward for Chawezi Quarry. It is a project that is not just big in scale, but also in terms of the benefits it will bring.”

“We expect it to take more than a year to be completed but the long-term gains for both the company and Malawi’s infrastructure development will be substantial.”

Chigoneka also said that the plant, to be installed in only three months time, will produce asphalt specifically for road construction, ensuring that Malawi’s infrastructure projects have a steady supply of high-quality materials. This in turn is expected to drive further growth in the construction sector.

“Our goal is to support the country’s development by providing the materials needed for building and maintaining roads. This project will allow us to do that on a much larger scale,” he said.

Chigoneka also said that besides the economic advantages, the new project is set to have a significant positive impact on the local community.

“We have already employed more than 40 people from the surrounding villages, and this number is expected to rise as the project progresses as the additional revenue generated by the asphalt plant will enable us to continue and expand our support to the community,” he said.

Chawezi Quarry Mine produces about 35,000 tons of quarry and quarry dust per month.

The Mine owned by Chawezi Resources, which is a subsidiary of Akatwiri Holdings, is located on a tenement area of about one square kilometre.

Besides the Nathenje project, the Akatswiri Holdings Group owns another quarry mine in Nsanje and has plans to set up quarry mines close to cities of Blantyre, Mzuzu and Zomba.

The Akatswiri diversified resources group has mineral tenements across Malawi and also offers consultancy services in mining engineering, geology and construction.

By Wahard Betha

The Ministry of Mining has assured players in the sector that it is ready and much prepared to fully implement the newly gazetted Mines and Minerals Act of 2023.

On June 28, 2024, Minister of Mining Monica Chang’anamuno gazetted the new Mines and Minerals Act of 2023 in so doing operationalising the Mining and Minerals Regulatory Authority, which has been formed under the new Act.

Director General (DG) for Mining and Minerals Regulatory Authority Samuel Sakhuta told Mining & Trade Review in an interview that the Government is ready to operationalize the Authority in accordance with the new Act but what has remained is recruitment of Board Members. 

Sakhuta said: “The government is very ready to move the new Act. The Authority has just started working but there are just a few gaps that are supposed to be filled to be fully fledged.”

“As you may be aware, the first step was to put the Act that has incorporated the Authority in place.”

“When it was commenced, the Authority had no DG, had no Board Members, but by July 31 the government had appointed the DG, meaning now we have the DG but the Board Members will be announced anytime soon. That is what we are pushing for because the DG cannot fully function without Board Members.”

Sakhuta said after the government announces the names of the Board Members, next will be induction of those members to ensure that all members are conversant with processes in the country’s extractive industry.

He said: “They (Board Members) have to move in with common knowledge of how to conduct these things. You know that the DG will only act as head of the secretariat to make sure that all operations are done as required.”

“The previous Act had no Authority. We had the Commissioner who was implementing the Act while this time we have DG as the head, with the Board Members.”

“At some point the DG may also guide on how to operationalize some of the things that are technical in nature so that the Board does not make mistakes.”

Commenting on the development, Geoscience Consultant Ignatius Kamwanje expressed excitement towards enactment of the new Mines and Minerals Act saying it contains some of the changes that match the current status of the mining sector. 

Kamwanje said: “Am very happy to see that in the new Mines and Minerals Act there are some aspects that have been put in place which are in familiarity with the current trends.”

“For example, incorporation of the Community Development Agreement (CDA) which is like now empowering communities to have that sense of ownership of the mining project within their area.”

“It is one way of empowering communities at large and it is also giving communities an opportunity to have a tradeoff with the government and mining company,” he said.

Kamwanje advised the government to ensure strict enforcement of the regulations in order to successfully implement the Act.

Consulting Partner for Perekezi Consultants Chikomeni Manda commented that the key reforms introduced in the new Act will significantly promote transparency, accountability and sustainability in the industry.

Manda said through the establishment of clear guidelines for mining sector, the Act seeks to attract more investment and create a more conducive environment for growth and development.

He also commended the Act for addressing pertinent issues such as community engagement, environmental protection and revenue sharing which are crucial in ensuring that the benefits of mining are shared equitably among all stakeholders.  

Manda said: “The new Act is expected to bring significant changes to Malawi’s mineral sector by introducing stricter regulations and increasing transparency in the industry through the Authority.”

“This could lead to improved governance and accountability as well as attracting more foreign investment.”

“Additionally, the Act may also help to address issues such as illegal mining and environmental degradation, ultimately benefitting the country’s economy and local communities.”

On implementation, he said the government needs to establish monitoring systems to track progress and enforce penalties for non-compliance.

Manda said: “It is also crucial for the government to actively engage stakeholders including businesses and advocacy groups to gather feedback and make any necessary adjustments to the Act.”

“By taking these steps the government can help ensure that the Act is effectively implemented and achieves its intended goals.”

In a separate interview, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera called on government to expedite deployment of District Mining officers and collaborate with different stakeholders conducting different advocacy activities focusing on mining in order to successfully implement the Act.

“It is very important to recruit District Mining Officers because when you go to the Councils, there are currently no officers to assist you on mining issues,” Chabwera said.

He also urged the Ministry to exercise contract disclosure in line with Extractive Industry Transparency Initiative (EITI) standards.

 “We are also expecting collaboration with Civil Society Organizations (CSOs) in successful implementation of this Act,” said Chabwera.

He also tipped the government to scale up awareness campaign on mining issues so that many Malawians are able to understand how the industry can shore up the economy.