Mining & Trade News

Portland Cement launches US$100-million factory in Balaka

Portland Cement has launched a US$100-million cement factory in Balaka which is one of Malawi’s largest industrial projects consisting of a clinker plant with a production capacity of 2,000 metric tonnes per day resulting in cement output of 800,000 per year.

Minister of Finance, Economic Development and Decentralisation Honourable Joseph Mathyola Mwanamvekha, who officially commissioned the plant in Ng'onga, Balaka described the construction of such a huge factory as a milestone in Malawi’s industrialization drive which is crucial towards attaining Malawi 2063.

Mwanamvekha said: "Today marks a significant milestone in our journey towards economic transformation and industrial expansion. This ceremony is not just the launch of a factory. It is a strong demonstration of Malawi's commitment to building a more resilient, more productive and more competitive economy.”

“It is a step towards achieving the bottom-up economic transformation agenda, a strategic plan to transform our economy through manufacturing by attracting investments which create more jobs and more importantly development of Ng'onga area. Our manufacturing sector, a key driver of economic growth, job creation and industrialisation, has faced challenges, but today we celebrate our collective triumph over them."

Mwanamveka said the commissioning of the factory reflects the strong partnership between government and the private sector explaining that the Malawi Government is championing investments that create jobs, strengthen the country’s industrial base, promote import substitution, and contribute to long-term macroeconomic stability.

“The Balaka Cement Factory represents all these elements and stands as a model of transformative industrial investment.” he said.

Portland Cement Malawi is a subsidiary of China’s Huaxin Building Materials Group. Mwanamveka said that the confidence shown by Huaxin Group in choosing Malawi for such a significant investment is a testament to the progress that Malawi is making in improving the investment climate, ensuring policy consistency, and opening doors for responsible foreign direct investment.

“We value the advanced technology, global expertise, and substantial capital investment brought into the country through this partnership,” he said.

Mwanamveka said with this factory, Malawi will stop reliance on imported clinker and cement, stabilize supply, and sustainably support infrastructure development, housing, and commercial construction which directly supports the aspirations of Malawi 2063, particularly the pillars of Industrialization, Urbanization, and Economic Competitiveness.

While touting the plant as having the capacity to export, he said Government will not allow the company to export if the local supplies are not adequate because it wants to promote health competition on the local market to ensure that prices of cement are not prohibitive.

Portland Cement Board Chairperson Symon Msefula said the investment will help in addressing cement shortages in the country in so doing stabilizing prices that are impacted by importation of cement. “The project reaffirms our long-term commitment in contributing to Malawi’s development,” he said.

Huaxin Building Materials Group Vice President Wang Jiajun explained that the factory will benefit generations as the limestone deposit has over 100 years mining life. He explained that with the opening of the clinker plant, the company will release into the local economy US$50-million annually in foreign exchange which was being spent on importation of clinker and cement.

Chinese Ambassador to Malawi Lu Xu said the opening of the factory underlines the cordial relationship between Malawi and the People’s Republic of China.

“We are committed to work with the Malawi Government in developing the country,” said Lu.  

Member of Parliament for Balaka Rivirivi Constituency Chifundo Makande advised the communities around the factory to desist from vandalism and theft of the property.

Senior Chief Nsamala said the members of the community need to be proud of such a mega investment in their area as it is contributing to transformation of lives through employment and business opportunities.

Huaxin Cement which was founded in 1907 is among top 10 cement producers in the world with subsidiaries in a number of countries including Zimbabwe, Mozambique and South Africa.

Construction of the Balaka factory started in the fourth quarter of 2024 and has been completed within 11 months only. The investment will generate K35-million for government in form of taxes and an extra K1-billion in mining royalties annually and has created at least  500 direct jobs and over 2,000 indirectly.

The company has also undertaken a number of corporate social responsibility initiatives including gifts to Balaka District Hospital, donations of cement to Professor Borgsten of Mercy James Pediatric Care Centre at Queen Elizabeth Central Hospital in Blantyre, provision of cement to Cyclone Freddy victims, assistance to Beit Cure Hospital in Blantyre in 2025, and donation of food items to vulnerable households in the Ng’onga factory area.

The company is generating own electricity to power the factory and uses electric vehicles in running the Balaka factory as an environmental conservation measure.

The Evangelical Association of Malawi (EAM) has called for collaboration among key stakeholders in the extractives sector to ensure that the country’s minerals benefit both government and local communities.

EAM made the call during a Government and Extractives Stakeholder Engagement Meeting on Mining Compliance and Governance, which took place in Lilongwe.

Vice Chairperson for EAM Davidson Chifungo said in an interview that they organized the meeting to fulfil one of their roles of making sure that there is proper collaboration in the extractive industry.

Chifunngo said: “What we have seen is that we have a lot of minerals but Malawians are not benefiting from them simply because there is no collaboration between entities in the sector.”

“There are some people who are smuggling the minerals, some Malawians are getting small scale mining licenses and later sell them to foreigners.” “In the end Malawi is not benefiting, the communities are not benefiting, that is why we called on the meeting to discuss how we can utilize the sector to ensure that there is justice for all.”

Chifungo backed government’s ban on raw mineral exports but urged the government to ensure implementation of the decision.

“The challenge that we have as a country is that we are just good at making pronouncements but very poor in terms of implementation,” he said.

Representing Malawi Extractives Industry Transparency Initiative (MWEITI) Secretariat, Leonard Mushane also blamed lack of coordination in the sector as one of the challenges impacting the industry.

Mushane said: “Coordination is the challenge between the Geological Survey Department, Mines Department, Mining and Mineral Resources Regulatory Authority (MMRA), Malawi Revenue Authority (MRA) and the Ministry itself.

“Technically we are working at making sure that mining revenue is being generated and collected as required.” The meeting was organized following the Alternative Mining Indaba that Civil Society Organisations operating in the extractives sector held from November 4 to 5 under the theme ‘Power to the people; Owning Malawi’s Energy Future.’ In his presentation, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera asked the government to publish all mining licenses, agreements and beneficial ownership details as one way of ending secrecy in the extractive deals.

Chabwera also urged the government to enforce environmental laws saying it requires mandatory rehabilitation and community led monitoring.

He said: “The government should fast-track ASM formalization, provide technical support and finance for safe operations.”

“They should also amend policy to extend Community Development Agreement (CDA) to medium scale operations and strengthen local and traditional leader roles in licensing and monitoring.”

“Government must also promote tax justice and end provision of harmful incentives to investors that deprive communities of revenue, localize MWEITI processes and make data accessible in local languages.”

He further appealed to the government to invest in beneficiation and local processing to create jobs and retain value in the country.

Globe Metals and Mining, which is pursuing the Kanyika Niobium Project in Mzimba, says it has registered solid operational, regulatory, and financial progress, positioning the Company for the next phase of development of ­­­­the Project.

The Company says in its quarterly activities report for the quarter ended September 2025 that the period marked a significant advancement in de-risking and progressing the Kanyika Niobium Project, strengthening Globe’s capital base, regulatory position, and strategic importance in the global critical minerals supply chain.

Globe’s Interim Chief Executive Officer, Charles Altshuler, commented: “During this quarter, we demonstrated continuous progress across Globe’s operational, regulatory, and funding fronts. The Mining Development Agreement (MDA) extension provides the certainty needed to complete key infrastructure and resettlement milestones, while the expansion of our mining licence underscores Kanyika’s increasing relevance in the global critical minerals landscape.”

“The successful completion of Tranche 1 and the loan conversions after the quarter have materially strengthened our balance sheet and demonstrated continued support from our strategic investors. We are now poised to enter the next development phase with a cleaner capital structure, a broader resource base, and stronger relationships with government, community, and funding partners.”

The recognition of niobium as a top-ten strategic mineral by U.S. Geological Survey, with an associated potential economic impact of US$10 billion under supply chain disruptions, highlights both the importance and the opportunity inherent in the Kanyika project. Globe remains committed to advancing the Project responsibly, efficiently, aligning closely with Malawi’s national development priorities.”

Project and Permitting Update

During the quarter, the Company received confirmation from MMRA that the MDA for the Kanyika Niobium Project remains valid and in full effect. The MMRA granted a 12-month extension for the commencement of substantial mining operations by September 27, 2026.

This extension follows collaborative efforts with the Government of Malawi to synchronize key development activities with national infrastructure delivery schedules. Over the past year, Globe has advanced various preparatory milestones, including early contractor engagement, infrastructure planning, and formalisation of the Community Development Agreement (CDA), which establishes the Kanyika Development Trust for local benefit sharing.

The extension period will enable the Company to finalise critical activities with the government agencies, including completion of the 32-km access road from Chatoloma Junction to site, advancing the 17-MW grid power connection, and implementing the resettlement and compensation program for affected households. Globe is working closely with the District Commissioner and community leaders to synchronize these processes with pre-construction and early works.

In the next 12 months, Globe’s focus will shift to resettlement preparations, site-based assessments, and advancing early works and permitting activities vital for full construction readiness. The Company continues to work transparently with regulators, communities, and investors to ensure that the Project progresses toward substantial mining operations in a responsible and Environmental, Social and Governance (ESG) aligned manner.

Licence Expansion and Critical Minerals Diversification

During the quarter, Globe received formal approval from the MMRA for an amendment to Large-Scale Mining Licence for the Kanyika Niobium Project. The amendment extends the licence scope beyond niobium, tantalum, and uranium to include zircon, hafnium, neodymium, and praseodymium — four high value critical minerals with strong strategic relevance to global clean energy and advanced materials markets.

This regulatory approval enhances the long-term development potential of the Project and ensures all future production of these minerals will occur under a fully compliant, government-endorsed framework. It also aligns the Project with the broader priorities of Malawi’s Vision 2063, which seeks to establish the country as a regional hub for critical mineral production and processing.

Each of the newly included minerals offers unique commercial and strategic advantages:

• Zircon: Used in ceramics and advanced refractories, it can be recovered as a by-product of niobium and tantalum processing, bringing additional revenue with minimal capital investment.
• Hafnium: A rare and ultra-high-value metal used in aerospace superalloys and nuclear control rods, representing a potential long-term opportunity for Globe as global demand outpaces supply.
• Neodymium and praseodymium : Essential for high-performance permanent magnets used in EVs and wind turbines, reinforcing the Project’s exposure to the fast-growing green-energy and electrification sectors.

Community, ESG and Leadership

During the quarter, Globe strengthened its in-country leadership with the appointment of Dr. Joseph Mkandawire to the Board of its Malawian subsidiary, Globe Metals & Mining Africa Limited. Dr. Mkandawire is the former Principal Secretary of Malawi’s Ministry of Mining, his extensive experience in government and policy will support the Company’s community, regulatory, and national development alignment.

­­­ Strategic Update and BFS Progress

During the quarter, the Company continued the engineering optimisation, Early Contractor Involvement (ECI) engagement, and funding strategy workstreams outlined in the June quarter report. These activities advanced as planned, with further refinement of project scope, cost estimates, and partner engagement.

Having already detailed the ECI model and associated design improvements in the previous update, the Company’s focus this quarter has been on updating contractor input, integrating updated market data into the BFS, and progressing partner due diligence ahead of the Final Investment Decision (FID). These ongoing efforts maintain Globe’s strong strategic position and ensure that the Kanyika Niobium Project remains aligned with market demand, ESG expectations, and financing readiness.

The Company will release the BFS at a strategically aligned time following these partnership and procurement negotiations. While no binding EPC or construction contracts are yet in place, this early engagement is expected to significantly de-risk the project execution phase.­

The Future Miners Network (FMN), a student-led initiative formed by Mining Engineering students at the Malawi University of Business and Applied Sciences (MUBAS), is broadening mining literacy among secondary school learners in districts where exposure to the industry has remained minimal for years.

FMN Team Leader Ezala Banda said in an interview that the network has already reached nine rural schools and the response from both learners and teachers signals an urgent need for structured mining education in Malawi.

The initiative was established in August 2025 after students observed that many young people joining mining-related programmes had no back ground in what the sector involves. He explained that the group was motivated by recurring encounters with peers who enrolled in geology, mining engineering, mineral processing and environmental courses without any prior exposure  in mining.

Banda said this lack of early knowledge contributes to low enrolment in mining programmes and widens Malawi’s shortage of skilled professionals. He observed that the gap in knowledge goes beyond academic interest and that this is particularly concerning in a country seeking to build a competent workforce for emerging mineral projects. FMN’s sessions centre on five main topics; Malawi’s mineral potential, ongoing and upcoming mining projects, career guidance, daily uses of minerals and the dangers of illegal mining.

Banda said: “We emphasize on career paths that include mining engineering, geology, mineral processing and environmental management, with deliberate encouragement for girls to consider mining-related professions.”

“We also highlight major minerals in the country such as rutile, graphite, limestone, gemstones and rare earth elements and the risks of illegal mining such as pit collapsing, landslides, child labour and potential exposure to unsafe tools and hazardous materials.” Banda said the impact of their work is already visible among learners and communities.

Students have begun expressing interest in pursuing mining-related careers and teachers have reported increased curiosity in science classes. “We have seen fear turn into curiosity and curiosity turn into ambition. Some learners have also taken information home, prompting families to seek accurate explanations about mining activities in their areas,” he said.  

Despite the impact, Banda said FMN faces financial and logistical challenges, as the group operates entirely on contributions from students hence transport. printing and administrative costs are difficult to sustain. He said, “Many of the secondary schools we target are located in remote areas, increasing transport expenses and most schools lack basic learning materials, making practical demonstrations challenging”.

“Demand is growing faster than our capacity as more schools continue to request outreach sessions even though the team is unable to accommodate them due to resource constraints”. FMN is, therefore, seeking financial, technical and institutional support. The group needs assistance with transport, educational materials such as brochures and posters, mineral samples, demonstration models and training in community engagement and environmental communication. He said formal partnerships with government ministries, civil society organisations and private mining companies would help the group access more schools and strengthen its programmes.

“Our goal is to reach all 28 districts and as a group envisions establishing Malawi’s first national student-led mining awareness programme”.

FMN is positioning itself as a bridge between the mining sector and the communities where Malawi’s next generation of professionals is growing. The network mission is clear; equip young people with knowledge, correct misinformation and build a foundation of informed citizens.

The Malawi Extractive Industries Transparency Initiative (MWEITI) says the absence of a dedicated legal framework continues to limit its effectiveness in promoting transparency and accountability in the country’s extractive sector.

MWEITI Secretariat Desk Officer Leonard Mushane said the initiative currently operates under the Mines and Minerals Act and existing public finance laws, which encourage disclosure and transparency but are not specific to the Extractive Industries Transparency Initiative (EITI) standards.

“We do not yet have an independent legal authority, but we have a draft bill for MWEITI. At the moment, we use the provisions in the Mines and Minerals Act and the public finance management framework to promote transparency. These legal provisions complement and support EITI’s objectives, even though they are not specific to it”, Mushane said.

He explained that once the MWEITI Bill is approved by Parliament, it will grant the institution full legal authority to enforce international transparency standards and strengthen oversight in the extractive sector.

“It has taken long but we believe the process will soon be expedited so that MWEITI can fully operate as a legally established entity,” he said.

MWEITI has three main functions that define its work which are to promote transparency in the extractive sector by implementing international EITI standards, grow the revenue base of the extractive sector to contribute meaningfully to Malawi’s economic development and to foster collaboration and trust among key stakeholders, government, companies, and civil society.

MWEITI has also been instrumental in ensuring that mining revenues translate into tangible development, especially at the community level. Mushane cited that through MWEITI’s efforts, Malawi has adopted provisions for Community Development Agreements (CDAs) under the Mines and Minerals Act of 2023.

He said through the provision every large-scale mining company is now required to allocate 0.045 percent of its gross revenue to communities within a 20-kilometre radius of the mine. This ensures that local people directly benefit from mining activities rather than waiting for government redistribution.

Mushane said MWEITI is also promoting local content regulations to ensure communities benefit through jobs, supply contracts, and business opportunities around mining operations. In addition, the initiative is working on establishing a Revenue Management Fund, a mechanism that will allow transparent tracking and allocation of mining revenues.

“Currently, all mining revenues go into government account number one, making it difficult to track their use. We are promoting a system that ensures clear, traceable, and equitable distribution of mining revenues. A consultant from Canada is helping us conduct a feasibility study and once it is completed, stakeholders will be consulted to finalize it,” Mushani said.

Despite progress, Mushani acknowledged several challenges hindering MWEITI’s full implementation of EITI standards, among them is the lack of a legal framework, which makes enforcement difficult and leads to cases of noncompliance from companies and some government agencies.

“Sometimes companies delay or refuse to provide information because there are no penalties for noncompliance. In other countries, where there are laws, things move faster because everyone understands the consequences of withholding information,” he said. He also cited limited funding and the absence of a fully-fledged MWEITI institution as obstacles to effective dissemination of reports and stakeholder engagement.

“We are doing what we can as a small team, but without adequate resources and legal powers, we cannot fully achieve our mandate,” Mushane said.

Looking ahead, MWEITI has outlined key priorities to strengthen transparency and accountability in Malawi’s extractive sector. These include pushing for the enactment of the MWEITI Bill, establishing the Revenue Management Fund, and developing a Local Content Policy and Regulation in collaboration with the Ministry of Mining.

“With new mineral discoveries and increased investment, we must ensure Malawi benefits fully from its natural resources. The local content policy will guarantee greater benefits for Malawians through employment and business participation,” Mushane emphasized.

He said that to ensure transparency, MWEITI publishes its reports on its official website, www.mweiti.gov.mw and also works with civil society organizations and the media to disseminate information. “We summarize and translate our reports into local languages such as Chichewa and Tumbuka for easy understanding at the community level. Although funding limitations affect consistency, our goal is to make information accessible to every stakeholder,” Mushane said.

MWEITI is also promoting beneficial ownership disclosure, which allows the public to know who truly owns companies operating in the extractive sector. However, Mushani noted that because the institution lacks legal power, only companies that voluntarily submit ownership information are currently listed.

As Malawi moves towards strengthening its mining governance structures, MWEITI’s push for a legal mandate and improved transparency mechanisms could mark a turning point in ensuring that the nation’s mineral wealth benefits all its citizens.

• 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.

Authorities in Kasungu District have suspended Artisanal and Small-Scale Mining (ASM) operations following a fatal accident at Chimbiya in Traditional Authority Chitanthamapiri, which claimed one life with eight others feared dead and buried in the rubble of the collapsed mine, and two seriously injured.

Deputy Public Relations Officer for Kasungu Police Miracle Hauli confirmed the dead as 34-year-old Moffat Nyirongo, and identified the injured two as Samson Phiri and Patrick Banda, who were all involved in gold mining at the site.

“It is true that one person has been found dead, while two others were injured and are receiving medical treatment at the district hospital,” Hauli said, and warned that anyone found engaging in illegal mining will face the full force of the law. Traditional Authority Chitanthamapiri confirmed the suspension of the ASM activities to Mining & Trade Review and expressed optimism that the suspension will help save lives.

“We have agreed to suspend all mining activities because the mining happening here is illegal. We have decided to impose the ban while the search operation for the missing miners is still underway,” he said.

He explained that the suspension takes immediate effect and that noEmining activities will be allowed until the missing bodies are recovered.

This year alone, more than 15 people have died in Kasungu District in accidents related to illegal mining. On October 10, two children aged 13 and 16 died at Kawonoko in the district, and barely a month ago eight ASMs lost their lives in a similar accident in Kasalika Village, Traditional Authority Suza’s area.

The Malawi Mining and Minerals Regulatory Authority announced a suspension of ASM activities in Kasungu in October this year as a result of regular occurrence of mine accidents. However, ASMs, most of them without mining licenses or permits, are still conducting mining operations in the district mainly for gold with buyers including foreigners coming from afar to buy the precious mineral.

In accordance with the Mines and Minerals Act, 2023, (No. 25 of 2023), Section 35, any reconnaissance, prospecting, exploration, or mining without a valid mineral tenement or artisanal mining permit constitutes a criminal offence. Offenders are liable to a fine of K20,000,000 and imprisonment for up to four years and that courts may also order land rehabilitation, with costs recoverable as a debt to the government if the offender fails to comply.

The Malawi Mining Regulatory Authority (MMRA) says it is failing to overcome illegal gold mining in the country partly due to threats by members of the mining communities who it suspects are backed by influential politicians.

In a panel discussion at this year’s Malawi Alternative Mining Indaba, outgoing Director General for MMRA Samuel Sakhuta said some illegal gold mining hotspots areas have become no go zones for the Authority since the miners are too hostile to its officers.   Sakhuta also alleged that the Authority receives threats from influential politicians when it starts contending illegal miners in some hotpots.

He said the MMRA suspects that some influential politicians are sponsoring the illegal mining operations.

“It does not mean we have failed as a government or as a Ministry but this needs collaborative effort,” Sakhuta said.

Illegal gold mining emerged as the major topic at the Indaba following the tragic accident that happened in Kasalika village, Traditional Authority Suza in Kasungu District which led to the death of eight people and injured five others.

The situation forced the government to suspend all gold mining operations in the district with immediate effect. Coordinator for Chamber of Mines and Energy Grain Malunga advised government to come up with by-laws at district level to ensure that district councils are actively involved in all mining activities.

Malunga said by-laws will also help to establish good relationship between the District Council Government and communities. He said: “The communities need to understand that government visits the sites not to arrest them but to regulate the trade. The DC’s office has to create awareness and the Ministry just chips in to train them on sustainable practices.”

Concurring with Malunga, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera advised the new government to ensure that there is transparency in the sector. Apart from the suspension of all gold mining operations in Kasungu District, the government has banned export of raw minerals in order to promote local value addition and scale up benefits of the minerals sector to the local economy.

Yami Gemstone Lab & Exports (YAGLE) has been honored with the Mining SME of the Year Award at the inaugural Phuka Small and Medium Enterprises (SME) Awards, organized by Standard Bank Malawi and the Small and Medium Enterprise Development Institute (SMEDI). Speaking in an interview, YAGLE owner gemologist Yamikani Jimusole said that for YAGLE, the recognition is more than just a trophy but a national acknowledgment of its efforts to transform Malawi’s gemstone industry through ethical practices, transparency, and community empowerment. said Jimusole: “This award is a tremendous honor for YAGLE as it validates our dedication to promoting ethical, sustainable, and value-driven gemstone mining in Malawi.”

“Being the only nominee in the Mining SME category makes this milestone even more meaningful. It shows that our work in research, advocacy, and industry reform is being noticed at national level.”

He said YAGLE entered the gemstone sector with a vision to change the narrative of how gemstones are sourced, valued and traded in Malawi. The team was motivated by the lack of gemological expertise in the country, a gap that has long hindered Malawi’s ability to benefit from its rich mineral wealth. He also said that their early research revealed that while Malawi hosts over 25 gemstone varieties including rubies, sapphires, tourmaline, aquamarine, grandidierite and spinel most stones were being sold informally and undervalued.

Jimusole further explained that YAGLE’s work extends beyond research and exports. The company is also working to empower small-scale and artisanal miners who make up about 99 percent of the gemstone workforce in Malawi. Many of these miners operate with limited technical knowledge and lack formal training in gemology and lapidary work.  Jimusole said:.

“This is a challenge that YAGLE aims to tackle head-on. The company plans to offer free consultancy services and access to finance to help miners understand gemstone grading, market trends, and ethical sourcing practices.”

“We want to partner with local miners to ensure a consistent supply of quality gemstones while helping them get fair value for their work as through collaboration and shared growth, we can ensure that communities directly benefit from Malawi’s gemstone wealth.”

Despite the progress, Jimusole said that YAGLE still faces the common challenges in the country’s mining sector, including the lack of accredited laboratories and professional appraisers in Malawi. This forces many dealers to export gemstones without knowing their true market value, leading to massive losses for the country.

He explained that YAGLE is now studying detailed gemstone and appraisal reports from reputable international laboratories to guide the commercialization of its mines. It is also developing a comprehensive Environmental and Social Management Plan (ESMP) to ensure compliance with both ­­local and international standards. Jimusole further said that YAGLE is exploring the use of blockchain technology to enhance transparency in gemstone sourcing and trading.

This move aligns with global standards set by organizations such as the Responsible Jewellery Council (RJC), the World Jewellery Confederation (CIBJO), and the International Colored Gemstone Association (ICA).

“By integrating blockchain, we want to make Malawian gemstones traceable from mine to market. This will increase buyer confidence and ensure our stones meet international ethical sourcing requirements,” said Jimusole.

The company plans to establish a state-of-the-art gemstone laboratory and a Gemological and Entrepreneurship Institute in Malawi to promote education, certification and proper valuation of gemstones locally. The initiative aims to reduce dependence on foreign labs and keep more value within the country.