Mining
Fuel scarcity hits coal business
December 05, 2024 / Wahard Betha
Coal mining at Chombe in Rumphi
By Wahard Betha
The fuel scarcity which has lasted for about two months due to foreign exchange shortages in the country has negatively impacted the coal business industry.
Local coal miner Rukuru Mining, which operates the Chombe Coal Mine in Rumphi district, told Mining and Trade Review that the development the fuel scarcity is impacting on the operations of both the company and transporters.
MD for the Company Bruno Kloser said as a Company they have tried to maintain the supply chain of coal using their fuel reserves but predicted more suffering if the crisis persists.
Kloser said: “Our own fuel stocks will only last for few weeks and some transporters are already not able to come to the mine due to lack of fuel.”
“So far we have been able to keep our customers stocked with coal but if the crisis continues for more than two weeks, then some will run out of stock.”
“2024 has given us additional challenges but we have still been able to meet our targets.”
Kloser said the foreign exchange shortage is another contributing factor to the challenges facing the industry saying they are failing to procurement equipment including wash plant, screens and, trolleys to scale up operations due to lack of foreign exchange.
He said: “We shall soon need foreign exchange to acquire more equipment, if that is not available, then we shall have to scale down operations.”
“However, we believe that the government gives priority to manufacturing and production and not consumption. Therefore, we are looking with confidence into the next year.”
At a press briefing in Blantyre, CEO for Malawi Energy Regulatory Authority (MERA), Henry Kachanje could not clearly give timeframe as to when the crisis will come to an end.
Nonetheless, Kachanje expressed optimism that the crisis might improve after settling debts with fuel suppliers.
The situation has triggered uncontrollable fuel prices to go up on black market with many selling petrol and diesel at a range of MK5000 to Mk8000 per litre.
Malawi imports fuel from overseas through the ports of Beira, Nacala and Dar es Salaam mainly through road tankers with a fraction of the diesel imports coming by train through Beira and Nacala.
However, Malawi has potential for exploitation of hydrocarbons in its part of the Great African Rift Valley Geological zone, which hosts Lake Malawi and the Shire River valley.
The Ministry of Mining is yet to award exploration licences to firms to prospect for hydrocarbons in the country after the previous investors relinquished the licences a few years ago saying they were unable to mobilise due to the prevalence of the Covid-19 pandemic that time, which prompted countries to enforce restrictions on travel.
Share this:
Leave a Comment
Comments
Mining & Trade Review News
Agribusiness News
Subscribe to Newsletter
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.
Archives
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.
Stakeholders Logos
