Mining
Indian investor abandons coal mining venture due to Malawi Government bureaucracy
November 05, 2024 / Tawonga Nyirenda Mayuni
By Tawonga Nyirenda Mayuni
MD for Aanya Mining Company Frank Mwenifumbo has revealed that his Indian partner has pulled out of their coal mining venture in Rumphi out of frustration due to delays by the Ministry of Mining to grant a mining license.
Aanya incorporated the investor in a joint venture partnership three years ago but despite the company being granted the license in August this year, the investor had already lost interest.
“Despite the license being approved by the licensing committee some time back, it has only been released at a time the investor had lost interest and shifted his interests to Zambia,” Mwenifumbo said.
He explained that it took five years of waiting to get the license, which was frustrating the foreign investor.
He said: “After a gruesome process, we are happy that we finally have a mining license, hence we can now start our activities on the ground.”
“The Department of Mines (DOM) should change and operate with a kind of pragmatism especially to us Malawians. Further, the DOM should not rush to revoke a license because of lack of finances to kickstart operations. There is no bank in Malawi that finances mining ventures, hence we need strategic partners and the support of the government.”
Mwenifumbo, however, commended the current Minister of Mining Monica Chang’anamuno for her commitment to encourage indigenous Malawians to invest in big mining ventures.
He was, however, quick to point out that the Minister’s commitment to promote locals to invest in mining is contrary to the behavior of DOM employees who are always on the neck of local mining companies that are not mining despite being given licenses.
He said: “The DOM keeps on asking mining companies why they are not mining despite having a license. Mining is not a simple thing as you have to look for investments and capitalize the activity and this is not a small process.”
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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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