Mining
Gemstone miner bemoans red tape at Malawi Mining Ministry
October 03, 2024 / Modester Mwalija
By Modester Mwalija
Gemstone mining firm Yami Gemstones Lab and Exports Private Limited (YAGLE) says it is encountering critical delays in its projects due to the Ministry of Mining’s failure to complete an inventory assessment.
In an interview with Mining and Trade Review, YAGLE CEO Yamikani Jimusole said the hold-up in completing critical inventory assessments has stalled several of the company’s high-priority projects.
“The delay by the Ministry has prevented us from moving forward with our sales and marketing initiatives, not to mention our ability to form strategic partnerships with investors; this is severely impacting our anticipated returns on investment,” he said.
Jimusole said despite signing a non-disclosure agreement with Export Development Fund (EDF) which is buying gemstones under Reserve Bank of Malawi’s Structured Market, YAGLE is struggling to progress without the required reports.
“We are sitting on unsold inventory that could generate significant revenue, but without authentic gemstone appraisals, we cannot move forward. Investors are growing impatient,” Jimusole explained.
He also said that the delays have also paused their funding request to the National Bank of Malawi, as the bank is waiting for necessary documents from the Ministry of Mining.
Jimusole said his company has been forced to revise several key project timelines like delaying the opening of the Mzimba gemstone mines which was set to be before 2025.
“Other projects, including the Environmental and Social Management Plan (ESMP) for Mangochi operations and the establishment of a Gemmological and Entrepreneurship Institute, have been pushed further to 2026,” Jimusole stated.
Jimusole complained that the Ministry has been slow to respond to their requests despite sending several reminders.
“The last time we heard from them was in May 2024, when we were told by the Principal Secretary, Dr. Joseph Mkandawire, that our request was forwarded for assessment. Since then, nothing,” he said.
In response to the setbacks, Jimusole said it has reached out to various stakeholders with the hope of finding a solution: “We have sent letters to the US Embassy, the International Colored Gemstone Association (ICA), and the Reserve Bank of Malawi, asking for their support in resolving the issues with the Ministry.”
He said such prolonged delays pose long-term risks to both YAGLE and the gemstone industry as a whole.
“If this continues, we are looking at massive financial losses, reduced operational efficiency, and potential reputational damage,” said Jimusole.
He also expressed concern that the delays could disrupt local supply chains and tarnish Malawi’s reputation in the global gemstone market.
Malawi’s gemstone sector holds immense potential for economic growth and development. With more efficient systems, Malawi could unlock the full value of its vast gemstone resources, positioning itself as a significant player in the global gemstone market while boosting local job creation and economic stability.
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Rehabilitation:
The establishment of a stable and self-sustaining ecosystem, but not necessarily the one that existed before mining began. In many cases, complete restoration may be impossible, but successful remediation, reclamation, and rehabilitation can result in the timely establishment of a functional ecosystem.
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Remediation:
The cleanup of the contaminated area to safe levels by removing or isolating contaminants. At mine sites, remediation often consists of isolating contaminated material in pre-existing tailings storage facilities, capping tailings and waste rock stockpiles with clean topsoil, and collecting and treating any contaminated mine water if necessary.
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