Mining & Trade News

Minister of Mining Monica Chang’anamuno has expressed concern over the spread of fake news about mining on social media.

”My ministry is concerned with the tendency by some unpatriotic people who are spreading false information especially through social media. We sometimes spend a lot of resources to investigate these unsubstantiated reports only to discover at the end of the day that they are lies,” Chang’anamuno said when she opened the Artisanal and Small-scale Mining Indaba in Lilongwe.

She urged media practitioners to report facts to avoid confusing the populace as well as investors.

“Sometimes we read reports in the media which are lacking and not fully investigated. We love you media practitioners as partners in development but whenever you are not sure about a subject, please seek clarification from my Ministry,” she said.

Chang’anamuno said if well nurtured and fully utilized to its maximum potential, the mining sector can ably compete with agriculture in contributing to the economy.

“Even the President His Excellency Dr Lazarus Chakwera is following with very keen interest developments in the mining sector and we know as a Ministry we have his total support,” she said.

First Principal Secretary in the Ministry Joseph Mkandawire in an interview expressed concern that the Ministry at one point hired a helicopter from Malawi Defence Force (MDF) to check illegal mining activities in Vwaza Game Reserve as reported on social media only to find out that the pictures being circulated were from one of the countries in West Africa.

“We spent millions to pay for fuel for the helicopter and even MDF personnel only to hit a blank wall. This malpractice of spreading false information must stop because sometimes it brings unnecessary fear to investors,” said Mkandawire.

Dr Charles Kankuzi, a lecturer at the University of Malawi, in his contribution during deliberations also touched on the issue of false information and misrepresentation of facts in mining sector.

He urged government and all stakeholders in the mining industry to take a leading role in information dissemination if the vice is to be nipped in the bud.

Former Minister of Mining Grain Malunga, who also graced the event, while commending the media for their role in developing mining said mining being a technical subject, there was need for specialization to avoid creating unnecessary tension through misreporting.  

Mining expert and former Minister of Mining Grain Malunga has called on government to promote recycling of scrap metals locally other than allowing people to export the metal.

Malunga observed in an interview that the exported scrap metals are the ones used to make iron bars and other metal components which the country purchases at a very higher price.

“We need to put things in order and see where we can generate more money and even jobs. By exporting the metals we are killing ourselves twice. You sell the metals cheaply and buy iron bars at a very exorbitant price. I think we can do better on this since we are not producers of iron materials,” said Malunga.

When put to him that government has been trying its best to put in place a ban on scrap metal exports, Malunga said the bans do not yield anything because they are always temporary

“The authorities must treat this issue with the utmost seriousness it deserves. We do not need temporary bans because it leads to the buyers circumventing the system and continuing trading in metals for copper, iron and aluminium production,” said Malunga.

When contacted for comment, Trade and Industry Minister Sosten Gwengwe disclosed that there are new procedures on the issue which government put in place but he could not divulge a lot as he was not in office.

“Let us talk after the holidays, but there are new procedures in place,” said Gwengwe.

Meanwhile, the emergence of scrap metal buyers on the local market is said to be one of the reasons some car breakers are now leaving the business as they are unable to compete with scrap metal exporters on the market

The scrap metal buyers are targeting old or accident damaged vehicles for breaking and then exporting the parts for recycling in China.

When car breakers purchase an old or accident damaged vehicle they dismantle the car and sell part by part while scrap metal buyers just sell the whole car in one piece for chiseling before exporting.

Mining and Trade Review investigations indicate that the trade of buying damaged or old vehicles is now even being done by foreigners with more money a thing which has automatically lead to soaring prices.

Lilongwe based veteran car breaker John Nkisi of MJ Multitraders   claimed that the growing demand for scrap metal in countries such as China, has distorted car breaking business.

 “We used to buy old or accident damaged vehicles at low prices but the story is different. If we identify a vehicle to buy we are outbid by scrap metal buyers. In the end some car breakers are closing shop due to stiff competition,” said Nkisi.

As a way of survival Nkisi is now diversifying his business by investing in agriculture because he claims that the future of car breaking is gloomy.

“It could have been good if more investors were allowed into mining of precious metals used to make aluminium and steel. By doing this the country could be getting enough forex while creating sustainable jobs instead of exporting metals bought on the market cheaply,” Nkisi said.

 Nkisi also urged his fellow car breakers to look into the issue of forming an association seriously so that they can be speaking with one voice.

“An association for car breakers will help us speak with one voice and easily lobby with authorities on how they can protect us. We are of the view that businesses which can be done by Malawians must be left in the hands of Malawians.

An association can help them have a strong voice for lobbying and dealing with issues including that of foreigners dominating the trade and export of metals with ease.

“If we sell car components bit by bit, we can make a lot of money because these scrap metal buyers get the stuff cheaply. Imagine a kilogramme going at K200, and when processed into bars we pay as high K6000 per kilogramme, this is sad,” said Nkisi.

Mining Solutions Africa says it is pursuing strategic measures aimed at fostering growth and collaboration within Malawi’s mining sector.

Director Fredric Josiya says in an interview the Group, which operates as either contractors or sub-contractors specializing in mining engineering, will in 2024 expand its portfolio in areas such as mine designing and blasting with an ambitious vision to start own mining operations.

“We are mining engineers, and our current projects involve diverse aspects of the mining process, from design to execution. Our next step is to have our own tenements, allowing us to engage in actual mining operations,” he says.

As part of its growth strategy, Mining Solutions Africa has established a branch in Mozambique, expressing keen interest in expanding their operations beyond Malawi’s borders.

Josiya urged the Malawi government to invest in mining sector through allocation of adequate funds in the budget for exploration projects, specifically targeting gold and lithium.

He said the government would profit from the investment by selling exploration results to potential investors.

Reflecting on the current state of the industry, Josiya acknowledged the challenges faced in 2023.

He said; “It has not been a good year for us, as construction activities have been passive. However, we have observed a quiet resumption of construction works by the government in the last quarter, which is a positive sign, considering they are the main buyers of our focal jobs.”

Mining Solutions Africa is currently engaged in preliminary prospecting in various areas, with a particular interest in gold and gemstones.

Josiya outlined the company’s approach, stating, “After the preliminary results are out, we intend to engage government entities to process various licenses for robust explorations.”

Discussing mining financing and economics in Malawi, Josiya expressed concern about the lack of expertise in key offices.

He said; “As a country, we are not doing very well in mining finances and economics. We have just received two cohorts of professional mining engineers in our tertiary education institutions, and we lack experts in key offices, including lending institutions.”

Josiya highlighted the significance of having professionals with robust knowledge in mining issues in key positions, both in government and lending institutions.

He said: “These professionals are crucial for scrutinizing possible mining projects and facilitating their financing, similar to the situation in our neighboring countries.”

“For Mining to develop in Malawi, there is a need for the government to invest more in exploration works, with the help of well-versed professionals who can take charge of vital areas including budget allocations.”

Artisanal and Small-scale Miners (ASMs) have identified a gold mining site in Milepa, Chiradzulu district which is attracting scores of miners, and local and foreign gold buyers.

One of the Miners Misheck Galaja confirmed in an interview with Mining &Trade Review that the ASMs are purchasing or renting land from smallholder farmers in the area for gold panning purposes.

Galaja said they are selling the gold grains, which he said are of good quality, to middlemen who have markets abroad or in turn sell to Export Development Fund (EDF) in Mangochi, because EDF officers are yet to come to the site to buy gold.

“We are selling to these buyers because we are looking for a ready market as we are in need of money for survival. We do not have money and time to take the gold to as far Machinga or Mangochi where EDF officers are buying gold,” he said.

Galaja said the ASMs started mining at the site in November, and they continue to land on good quality gold particles.

However, Galaja expressed concern over poor sanitation at the site due to shortage of clean water and toilets.

“We are at a high risk of contracting diseases such as cholera as we do not have toilets as well as potable water to drink, we just use the bushes as toilets putting ourselves at a high risk,” he said.

Galaja called on government to assist the ASMs at the site by ensuring that they are licensed and trained in sustainable mining practices.

Malawi has a number of ASM hotspots including Makanjira in Mangochi, Tukombo in Nkhata Bay, Bua River area in Kasungu, Machinga, Balaka, Neno, Nsanje and Matapira in Lilongwe.

Besides poor sanitation, other issues at the sites include child labour, alcoholism, marriage breakages and pupils dropping out of school to indulge in mining activities. 

Mineral resource revenues are special because they are finite, volatile and if they are large enough, they can easily impact other industries and paralyse them. They also generate large economic rents and are location-specific, which can lead to conflicts over their control in other areas. As a result, they may need to be managed and distributed differently from other types of government revenue.  There are various techniques that governments can employ to respond to the special challenges of natural resource revenues in a country like Malawi. These among others include;

• state-owned enterprises.
•  subnational jurisdictions.
• distributing revenues to natural resource funds.
• the national budget, or directly to citizens in the form of cash. Each of these institutions requires a unique management strategy.

Natural Resource Revenue

Many countries do not see their expected returns of social and economic development when they discover mineral resources. This challenge is in part linked to how the countries manage the natural resource revenues, or the money received by the government because of the extraction or sale of natural resources. The reader must understand that mineral resources are unique and to understand the uniqueness there are characteristics that make them to be in such a state and belong to a special way  as compared to other natural resources for a country. Below are some of the selected few  properties that make mineral resources uniquely identified;

1. Mineral Resources are volatile.

 Prices of natural resources like minerals, fluctuate with respect to market forces. When government revenues are tied to natural resources, their revenues will fluctuate accordingly. In this case,volatility is amplified by  production cycles of mining and unexpected stoppages. This makes the mine planning or the countrys development planning difficult and may lead to company’s/countries go into debt when revenues decline in order to maintain the same standard of living as before the downturn. Volatility can create problems because it means public expenditure becomes less effective than it was before so countries must try to put in place mechanisms that can minimise this kind of risk because the end result to this  is poor investment decisions and higher probability of debt crises.

2. Mineral Resources are Non Renewable ( Finite).

Each mining project cycle has a life span called the Life of Mine(LOM) upon reaching the Goodbye Cut. This is usually so many years but mostly less than 50 . While new technology or exploration generates new discoveries, ultimately mineral resources are finite because they cannot be renewed once and for all. Some countries have experienced large economic booms during their peak production phase of the mineral resources both in areas of operation and the country as a whole but ultimately, only to fall into poverty as soon as the resources are fully exhausted. An example in Malawi is the mining town of Karonga from Kayelekera Uranium Mine  in the north where there was an economic boom but later phased out slowly due to its temporary closure (under Care and Maintenance) and also the phosphate exploited and entirely depleted in the tiny Island of Nauru in Oceania.

3. Mineral Resources can damage other industries.

When mineral resources are discovered, they can represent a large percentage of the country’s GDP and government revenues. If the economy does not have the absorptive capacity to make efficient use of these revenues, the result can be inflation or exchange rate appreciation. This increases the cost of domestically produced goods in foreign markets, especially manufactured goods, harming exporters. Also, the large revenues in the private sector often attract skilled workers to extractive industries like mining. When the number of skilled workers in a country is small, this can make it more difficult for other sectors to find expertise. Together these trends can make it more difficult for other industries to successfully operate and can make a country more dependant on natural resources like minerals. Together, these effects are often referred to as Dutch disease. In other words, Dutch disease leads to accumulation of wealth from resources like minerals and the consumption that comes from that wealth leads to a demand for a lot of non-traded goods and this pulls resources away from other internationally traded goods that would be competitive.

Politically a Dutch Disease is a highly valued resource that acts as a natural rent which is just as income that is free. It’s a massive wealth that can sometimes lead to internal conflicts of a country.

4. Mineral resources can be large and geographically concentrated.

Mining revenues can be enormous relative to the size of an economy, yet, as a capital-intensive rather than labour-intensive industry, they tend to employ only a very small portion of the population. This is often misaligned with the expectations of the communities that surround the extraction point. Furthermore, the profits can be captured by a selected few or be exported to foreign investors. This can cause frustration and unnecessary expectations among locals, leading to conflict, especially in the region where the mines are located. The large amount of profits from a single source is vulnerable to state capture or government mismanagement unless oversight mechanisms are in place.

Some selected institution for management and distribution of revenue in mineral resources

Revenue distribution refers to the manner in which a government allocates, or distributes, natural resource revenues to different levels of government, institutions, or directly to citizens. Some of the decisions of where to allocate revenues are fundamentally political. Economic efficiency criteria consider questions of the absorptive capacity of different levels of government, whether individual citizens have access to the ability to save transfers, and how costs differ over different locations or sectors. Combining the economics with the political analysis can be challenging, particularly when trying to respond to the special qualities of natural resource revenues realised from extractive sector like mining. For instance, allocating an appropriate percentage of revenues, determined by an economic formula, to a long-term savings fund can help mitigate Dutch disease and improve national spending efficiency, though it can also starve the government of much-needed development financing. Allocating some revenues to subnational governments may also improve local service delivery. However in allocating resource revenues directly to citizens, it may reduce poverty and improve natural resource revenue accountability. Therefore governments, with input from citizens, must decide how to manage risks and opportunities in the sector. Allocation of revenues is only part of a bigger picture and mining related/natural resource revenue institutions should have established procedures or principles to plan, organize staff and control their operations. These activities are referred to as revenue management, as opposed to revenue distribution, which simply refers to the allocation of revenues. Some key institutions that manage resource revenues are:

(a) Natural resource funds.

Governments can establish special extra budgetary funds—outside the regular budget process—to manage natural resource revenues such as from mining of a mineral resource. When these funds are used to invest at least partly in foreign assets, they are referred to as sovereign wealth funds or natural resource funds. Ideally, the government dictates how much to deposit and withdraw from these funds by fiscal rules. Sometimes governments that are dictatorial ones, manage these natural resource funds willy nilly without clear rules or objectives.

How successful are natural resource funds

• When they  are established with clear objectives
•  Strong fiscal and investment rules
•  Division of responsibilities between actors.
•  Sufficient disclosure for proper oversight.

(b) State-owned enterprises

 State-owned enterprises are companies that are more than 50 percent owned and operated by the government. In mining, state owned enterprises can play an important role in revenue management, as natural resource revenues often pass through them on their way to the budget, or there are large budget allocations of mineral revenue to these. Countries often find them attractive, as  national mining companies can generate revenues for the state and serve other functions, such as training domestic workers and improving sector control e.g. Botswana. However, there is a risk that State Owned Enterprises can act as a drain on government finances or become a financial risk and thus they can divert scarce government revenues away from public investments in other sectors. They are also responsible for non-fiscal expenditures that can be an inefficient use of public resources, such as Corporate Social Responsibility (CSR) projects. If a government clearly establishes the fiscal relationship between these state owned enterprises  and the budget, it can work better to avoid  problems.

The Ministry of Natural Resources, Energy and Mining says a minimum of 800 MW of energy is required to power the mining sector.

The Ministry said this during a stakeholder’s workshop on the identification and prioritization of advocacy in the implementation of the National Energy Policy which was held at Sunbird Capital Hotel in Lilongwe.   

The Electricity Generation Company (EGENCO) produces an average of 363.75 MW against a demand of over 450 MW which is expected to grow to over 1000 MW by 2020 this year.

In a report presented at the workshop dubbed ‘Status of energy sector in Malawi,’ the Ministry explains that the Government has embarked on various initiatives to attract private investors in the power generation industry.

It leads: “Some of Government’s interventions to allow private sector participation in the power industry include: Amendment of Electricity Act; development of the Independent Power Producer (IPP) Framework; conduction of Cost of Service Study; conduction of feasibility study; development of an Integrated Resource Plan (IRP) and; construction and rehabilitation of transmission and distribution lines and substations for evacuation of power.”

The report indicates that the country has a huge potential to increase hydropower generation capacity to 1, 300 MW.

There is also potential for coal-fired power generation and renewable energy including solar energy, wind, geothermal and mini/micro hydro.

It says despite such potential, 99% of the nation’s electricity is generated from hydropower stations cascaded on the Shire River.

Meanwhile, the Ministry has signed a Power Purchase Agreement (PPA) with an investor to develop a wind energy project at Lunjika in Mzimba and conducted resource mapping across the country for development of solar power, geothermal and mini hydro power stations.

“The country receives 2, 640 sunlight hours in a year with annual average insolation levels in the range of 5.21 to 5.79metres kWh/m2/year.”

“There is also potential for wind energy with measured annual average wind speeds of 3.8 to 4.0 m/s at 10m heights; 12m/s in Chikangawa and at 70metres in Bolero, Rumphi,” reads the report.  

Besides the mining sector, other sectors that are yearning for increased power supply include: Tourism, education, banks, ICT, hospitals and offices, all requiring a minimum of 500MW.

The Green Belt Irrigation Initiative requires a minimum of 130MW; manufacturing and processing industry demands not less than 700MW while domestic demand is pegged at a minimum of 700MW.

Malawi’s access rate to electricity stands at 11.4 percent overall with only about two percent in rural areas and blackouts are the order of the day in the country owing to inadequate generation capacity; ageing transmission and distribution networks; non-cost reflective tariffs; slow rate of connection to the grid; and environmental degradation.

Power projects underway in the county include the 19 MW Tedzani IV to be completed by 2021; the 70MW grid connected solar project; the 350MW Mpatamanga hydropower plant whose construction will start this year 2020 or 2021; the 200MW Kholombidzo hydropower plant; the 261MW Fufu hydropower and the 190MW Songwe hydropower plant.

The National Energy Policy (NEP) of 2018 is based on a goal of increasing access to affordable, reliable, sustainable, efficient and modern energy for every person in the country.  

Mineral exploration is advancing in a number of mining projects which will require a substantial amount of power including Makanjira Heavy Sands in Mangochi, Songwe Hill Rare Earths in Phalombe, and Kanyika Niobium in Mzimba.

The Kayelekera Uranium Mine in Karonga, which is currently on care and maintenance, uses diesel generators.

The impending sale of the Kayelekera Uranium Mine in Karonga has triggered panic among the workers of the mine who are not certain of their future when the new owners take over the mothballed mine.

The Ministry of Natural Resources, Energy and Mining has given consent to Australia’s Paladin Energy to sell its 85% majority shareholding in Kayelekera to Lotus Resources Limited Pty Limited, a subsidiary of Hylea Metals Limited (ASX: HCO).

In an exclusive interview with Mining and Trade Review during a recent visit to the mine, Kayelekera employees said they want Paladin to retrench and pay them their terminal benefits before they sign fresh contracts with the new owner of the mine.

“We were told that our contracts will be intact regardless of the ownership changes but we are in panic because we do not know what the new Company will offer. Many of us have been working here for over 10 years and it will be fair for Paladin to give us our dues before they leave,” said one of the employees who pleaded for anonymity.

He explained that the employees wrote a letter to Paladin management, which was signed by about 50% of the members of the workforce, but the Company is dilly-dallying to give them feedback.

The Kayelekera employees, therefore, urged “the Government to come to their rescue on the issue as they have proven powerless to demand their labour rights from Paladin.”

But Paladin General Operations Manager Mike Hoey parried down the demands from the workers saying since Lotus Resources are purchasing Paladin Africa as a going concern, all existing entitlements will be transferred to the new owner.

Hoey said: “We will follow the country’s labour law that mandates the transferring of the employees to the new owner when you are selling an entity. Both Paladin and Lotus will continue to comply with all relevant Acts and Legislation of the Republic of Malawi.”

Meanwhile, Paladin has quashed allegations by some members of the community that it is polluting the nearby Sere River.

Speaking during a media tour to the site organized by Ministry of Natural Resources, Energy and Mining, Kayelekera Senior Environmental and Compliance Officer John Msachi explained that the Company follows all the procedures as spelt out in the country’s regulations and internationally set standards in handling uranium.

Msachi said: “We do not just dispose uranium into the environment.  We even take that water that we think is contaminated with uranium back into the processing plant for extraction of uranium deposits. Before disposing the water used for processing of uranium into the river, we make sure that the value of uranium is not beyond the standard which is 0.30.”

He also explained that the company undertakes regular environmental monitoring activities and produces regular reports that are submitted to the Government through Environmental Affairs Department.

The reports include: Annual environmental; Quarterly data reports; quarterly license compliance reports and; monthly data reporting – from joint Paladin/Government of Malawi monitoring programs.

Paladin has three water treatment ponds at Kayelekera and also planted grass and trees at the site.

“We use native grass and trees from the area and also monitor the rehabilitated areas for sustainable and self development post mine closure and water post closure for about five years as the area consolidates,” he said.

Spokesperson for the Ministry, Sangwani Phiri commended Paladin for proper management of the environment at Kayelekera.

 “As we have seen after touring the area, no any poor disposal is being made here,” he said.

In the Kayelekera buyout deal, the Malawi Government will retain its 15% stake in the uranium mine.

Lotus MD Simon Andrew said in the statement that following consent granted by the Ministry of Natural Resources, Energy and Mining, completion of the sale remains subject to customary terms and conditions, including Reserve Bank of Malawi (RBM) approval, which is expected to follow.

Kayelekera hosts a high-grade uranium resource with an existing open pit mine but Paladin suspended mining at Kayelekera in 2014 following a slump in global uranium prices.

The mine has since remained on care and maintenance as directors anticipated a pickup in global uranium prices.

The stake in KUM, according to Paladin will be sold for US$5 million (about K3.7 billion), comprising $200 000 (about K148 million) in cash and $4.8 million (about K3.5 billion) in Hylea shares which will be issued to Paladin.

There is uncertainty over the reopening of Ilomba granite sodalite mine in Mbilima, Chitipa as the people of the area through a civil society group dubbed the Concerned Citizens of Chitipa (CCC) have put their foot down that the mine will not reopen until the investor honors Corporate Social Responsibility (CSR) obligations.

Production at Ilomba was suspended in November 2019 following protests by the Concerned Citizens who were demanding that government closes the mine for failing to honor corporate social responsibility obligations.

The protests turned violent as the protesters burnt shelters of mine workers and even seized a vehicle which was supposed to carry the product for export.

In response, Ilomba Granite Mine Company sued leaders of the Concerned Citizens in December 2019, and applied for an interlocutory injunction restraining the people of Mbilima from interfering with the operations of the company through protests or whatsoever.

But during a court hearing at Mzuzu High court on January 6, Ilomba withdrew the case “in the interests of peace, and to avoid further conflicts and ease tension.”

Chairperson of Natural Resources Justice Network (NRJN), Kossam Munthali, who was one of the defendants said he was delighted that the case was dismissed with no costs attached to it.

However, the Concerned Citizens have stood their ground that the mine be temporarily closed “until some sticky issues are sorted out regarding the Chinese miners.”  

“Our demand still remain that the mine be temporarily closed until some sticky issues are sorted out, the communities need to be told who the Chinese miners are because the license holder is a Malawian of Asian origin Faisal Hassen, furthermore the new Chinese owners did not carry out  any community sensitization,” said Chairperson of the Civil Society Network Sydney Simwaka.

Hassen, however, dismissed the CCC’s assertions saying his Chinese partners met up with the traditional leaders of the area before commissioning mining operations.

Hasssen said on Mining Review readers Whatsapp group: “The truth is that we have done nothing wrong as a Company. When my Chinese partners moved to the site and met up with the chiefs, they were overwhelmed by the welcome they received hence they pledged to assist the community. Among others, they pledged a borehole, the building of a classroom and a clinic. The borehole has already been completed and the other projects are on their way.”

But commenting on Hassen’s remarks, Munthali described them as an insult to the community of Mbilima explaining that constructing a borehole alone is not enough considering the 24 years that the company has been in operation in the area.

Munthali also lashed out at Ilomba Mining Company for being secretive in its dealings.

He said:“What even shocked the community when we met was the size of their mining area which is 3.4 square kilometers, implying all the villages in Mbilima area are within the mining area.”

 This information was not even known to the community, so hiding the information for 24 years is not fair.

 “The people do not even know who the Chinese people are, they were just surprised.”

Manesi Kapeni Village in the area of Senior Chief Kapeni in the south-western part of Blantyre is located almost 5-minutes’ drive off the M1 road. There is almost an air of tranquility as one passes through trees which form part of the surrounding and the chirping sounds of birds and insects. The sight of many people working in the farms clearly demonstrates that it is a predominantly agricultural area.

But this area, in September, experienced acts of violence. The community members blocked a Chinese company which is constructing a bypass road in Blantyre from mining quarry stones in the area. What followed later were a series of meetings between government officials, the community and local leaders. No resolution has been reached so far.

Village head Manesi Kapeni said the initiative to start mining quarry in his area came as a surprise. So do his subjects who were shocked to see the Chinese coming into the area to start testing the rock quarry for construction of Blantyre By-Pass Road. Most of the information the village head had about the project then was through grapevine.

“They just came with their machines and this surprised my subjects. Consequently,  some of them started rioting,” he told Mining and Trade Review in an interview, adding; “I told them [contractors] to go back as some of my subjects accused me that I had sold part of the village where the rock was.”

But later, the contractors came and took samples of the rock and assessed the surrounding area to determine how much land will be affected. Those within the vicinity of the affected area were to be compensated.

“When the officers from the District Council visited the area there was riot. People insisted they would not relocate since some of their relatives were buried there. I sat down with Traditional Authority Kapeni and the District Council officials after engaging the community but up to now there is no resolution to the wrangle. The Chinese came again and did some testing, I am told, but we do not know what will happen next.”

Not isolated incident

What happened in Manase Kapeni Village is growing into a familiar phenomenon in Malawi’s minerals sector as recently a vehicle belonging to a Chinese firm carrying gemstones was detained in Mzimba following a row which erupted between community members and the firm with the latter being accused of smuggling gemstones out of the area.

Senior Chief Pherembe of Mzimba said in an interview: “We have noticed that there is an influx of these Chinese operators in the district that are conducting mining activities without proper procedures.”

“They are doing that on customary land which belongs to us and therefore we have to be informed of their presence.”

 The chiefs threatened to shut down the gemstone mines.

Members of parliament and councilors in Dowa district also called for suspension of all mining activities in their areas until the Ministry of Natural Resources, Energy and Mining gives an explanation on how it is dealing with illegal mining in the district.

Unanswered questions

According to Consulting Geologist, john Nkhoma, there is need for proper community sensitisation before the inception of any mining project in the country.

“The company should inform the community through the District Council and Mines department of what their activities are and if there is any compensation, people must know who will do the property evaluation and modes of payment,” said Nkhoma, a veteran Geologist, who is Managing Director of Chiwandama GeoConsultants.

He said in the case of the quarry mining wrangle in Blantyre, there should have been consultation for the company to be awarded an Environmental and Social Impact Assessment (ESIA) certificate.

The question is; “Did the company do that. When they were mobilising did they inform all the relevant stakeholders?”

Reacting to the events, Deputy Director for Mines Department in the Ministry of Natural Resources, Energy and Mining Peter Chilumanga said in order to deal away with wrangles between mining company’s and members of the community in mining areas, government has proposed that all artisanal and small scale miners (ASMs) using equipment should get medium scale mining licenses.

 “In that way, issues of CSR as complained by communities will be a thing of the past as all medium scale miners are mandated to execute CSR activities signed by all interested and affected parties,” Chilumanga said.

 Surely, if the government and the quarry mining contractor in Manesa Kapeni Village had followed such well knitted arrangements as unveiled by Chilumanga, things could not reached such a boiling point in this beautiful village.