Mining
CSOs push for amendment of mines law to reduce exploration period
February 18, 2025 / Wahard Betha
Chabwera: The Retention Licence is retrogressive
A grouping of civil society organisations operating in Malawi’s extractives sector the Natural Resources Justice Network (NRJN) has asked the Malawi Government to amend the Mines and Minerals Act 2023 to remove the Retention License and reduce the duration of an Exploration License.
The Mines and Minerals Act 2023 provides resource firms with a Reconnaissance License for a duration of one year with a possibility of extension; Exploration License of three years extendable thrice adding up to nine years in total and; Retention License of five years.
But in an interview with Mining and Trade Review Programs Coordinator for NRJN Joy Chabwera said including Retention and longer duration of Exploration Licenses is retrogressive and against the country’s economic agenda as it results in the nation taking a very long time to start realizing the benefits from the mines.
He said: “The 16 years’ period combining Reconnaissance, Retention and Exploration licenses is against both the Agriculture, Tourism and Mining (ATM) and Malawi 2063 Economic Agenda which has featured highly mining as one of its pillars for industrialization. With that long period, when are we going to start mining?”
“The Retention License is retrogressive; Members of Parliament must remove it.”
“Let us look at 2030 agenda, it is just five years from now, and the agenda talks much about energy transition. By that time, we were supposed to have tangible progress.”
“At the same time, the government needs to manage people’s expectations. Many communities do not know at what stage the projects are but what they know is that very soon they will start benefiting from the project and with the long exploration and retention license duraction, the communities will start suspecting the companies of stealing their resources.”
Chabwera expressed concern that despite including the suggestions in the CSO input when the law was being amended from the 1981 to 2019 and later to 2023, they were ignored and did not have enough time to engage responsible MPs as the process was done within a short period.
He said it is imperative for Malawi to borrow a leaf from other African countries who are progressing in mining activities with no retention license and the shortest exploration period including Ghana and Bostswana.
“Ghana did away with Retention License and of course Botswana has a Retention License but it is conditional and it is only for three years. When we look at their exploration license it is just three years and renewed once for another adding up to six years, and plus retention it totals 9 years.”
“It has strict conditions and requirements for a company to qualify to be granted Retention License hence there are only very few that qualify.”
“As we speak Malawi was supposed to be a country that encourages mining not exploration because with that long period it is almost impossible for Malawi to start realizing benefits from the sector.”
Commenting on the development, Mining Expert Ignatius Kamwanje concurred with Chabwera saying the duration is too long for a serious investor and needs to be shortened understanding that the nation has put much interest in mining sector. Kamwanje said the prolonged duration results in the Exploration Licence (EL) staying idle as it gives room for more renewals.
“Reconnaissance, EL and Retention combined, indeed 16 years is too much. I would propose 10. Why? If an investor has done nothing during the first years of EL, there is no need to renew.”
“Our Act seems flexible and soft on this and was supposed to be looked into with sober minds.”
In a separate interview, Coordinator for Chamber of Mines and Energy Grain Malunga agreed with Kamwanje that EL needs to be granted for seven years but proposed for strict monitoring and reporting. Malunga said: “EPL should be issued for 7 years after and a bankable pre-feasibility study should be a conducted.”
“Strict monitoring and reporting should be abided by. Retention license should be allowed on the condition that another company interested in the tenement should be allowed to enter into joint venture agreement to continue with the project.”
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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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