The Malawi government says it has recorded an increase in coal production from 30,250.76 tonnes in 2021 to 62,166.06 tonnes in 2022 reflecting a 106 percent increase.
This is outlined in the 2022/2023 annual economic report published by the Ministry of Finance and Economic Affairs.
The report attributes the rise in coal production to high resumption of industrial activities after recovering from Covid-19 pandemic and improvement of some companies’ production through optimizing their operations with improved equipment and processes to meet rising demand during the period.
However, the report states that it was not been all rosy in the cement industry as there was a 40.3 percent decline in production of limestone, the major ingredient in cement, compared to the previous reporting period.
The report reads: “Shayona Cement Factory and Cement Products Factory produced 277,979.36 tonnes of limestone, representing a 40.3 percent decline in production compared to the previous reporting period. Similarly, iron ore production fell by 80.3 percent, with only 981.61 tonnes produced in 2022.”
“This was largely driven by high production costs in cement manufacturing and competition with cheaper cement that is smuggled into the country.”
The report also notes that despite awarding more mining licenses in rock aggregate, production declined by 36 percent. A total of 504,536.04 tonnes were produced in 2022 compared to 783,416.55 tonnes in 2021.
“This is because a number of the new quarries were in the construction phase and hence had not commenced quarrying activities. Furthermore, some project quarries delayed to commence production due to shifting timelines of civil construction projects.” the report reads.
Meanwhile, the report states that rock aggregate production is expected to increase as more civil construction projects are in the pipeline and the general public continues to embrace concrete products.
In the current financial year, the government plans to maintain public engagement on mining issues through social media, mainstream media, and other public forums, review the Mines and Minerals Policy to create a more attractive investment climate in the country and develop a National Strategy on Mineral beneficiation and value addition in order to foster productivity, transparency, and accountability of the mining sector so that it contributes significantly to inclusive wealth generation and economic growth in line with the 2063 Vision.