Production stalls at Chimwadzulu corundum mine

By Bester Kayaye

Production is yet to resume at Chimwadzulu corundum mine in Ntcheu, several years after the Ministry of Mining rejected renewal of a mining licence for previous tenement holder Nyala Mines and awarded mining rights to a local consortium of investors, Mwalawanga Mining.

Ministry of Mining Spokesperson Andrew Mkonda Banda told Mining & Trade Review that the stagnation of the project has resulted from delays by Nyala to vacate the mining site as well as demise of a key shareholder in Mwalawanga Ishmael Wadi in June 2021.

Banda explained that Nyala Mines took a long time to vacate the site following the lawsuit it filed against government demanding compensation for failure to renew the license though the investor invested in equipment to improve the mining operations.

He said: “Mining License for Chimwadzulu Hill was issued to Mwalawanga Mining Limited on 24th November, 2017, for a license term of 10 years. Soon after the grant of the Licence to Mwalawanga, it took at least two years for the previous licence holder, Nyala, to vacate the mine site.”

“The latter was challenging Government for the non-renewal of its licence and demanding compensation from the Government on the expenses incurred in the course of improving the mine infrastructure. Finally, Nyala vacated the mine site in the first quarter of 2021. This delayed the current operator to mobilize resources at the mine to commence operations.”

Banda also said the death of Wadi crippled the resource mobilization process for the new company.

He, however, said the company is working on several obligations which it is required to meet before commencing the project.

Banda said: “Meanwhile, the company is required to fulfill several conditions before commencing operations at the mine such as seeking an approval of an Environmental and Social Impact Assessment (ESIA) for the project by Malawi Environmental Protection Authority (MEPA), which is underway.”

“The project is also awaiting the signing of a Memorandum of Understanding between Government and Mwalawanga Mining Limited.”

Banda said the Chimwadzulu site is very significant for Malawi as it consists of highly priced gemstones from which government is to generate revenue in form of taxes and royalties, besides providing employment opportunities to Malawians.

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