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LISIKWA COAL MINE LOBBIES FOR THE ESTABLISHMENT OF A COAL INDUSTRY ASSOCIATION

September 17, 2024 / Tawonga Nyirenda Mayuni
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By Tawonga Nyirenda Mayuni

The Assistant Mine Manager for Karonga-based Lisikwa Coal Mining Company Zeru Thopola says there is need for the government to empower the coal industry by facilitating the establishment a coal industry association.

In an interview with Mining and Trade Review, Thopola said the government should come in through the Department of Mines (DOM) and bring together coal miners through an association that can control the operations of the industry.

The call for the establishment of the association comes amidst market woes that have characterized the industry.

Thopola said: “Lisikwa coal mine is facing unfair market competition where by other coal companies tend to lower coal prices on the market, hence we do not get orders. As a result, the company is making little money and struggling to pay bills and wages.”

He also said financial constraints that local coal miners such as Lisikwa are experiencing can be solved once the government establishes a loan facility for coal miners.

“Most of the companies in the coal industry do not have the financial capacity to run their mines but they have mining licences. They wait for other investors with the financial muscle to partner them till the licence expires. If you go to the cadastral licensing system, you will find out that more than 20 companies have licenses for coal but less than five are operational,” Thopola said.

Thopola also added that transportation of coal is another challenge due to poor road conditions, which leads to unexpected breakdowns, delay and accidents.

Commenting on the future of the coal mining industry in Malawi, Thopola said that the future of the coal industry in Malawi needs advanced technology that will require shaft sinking since most of the coal is found deeper than 50 meters.

Lisikwa investments Limited was established in 2008 and employees 150 people. The company currently sells its coal to Illovo Sugar Malawi (Dwangwa) and Presscane Limited.

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