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Firm seeking investment partner for Karonga lime project

September 20, 2023 / Wahard Betha

A locally registered firm Why Limestone Mining is looking for potential partners to invest a minimum of $200,000 to enhance productivity of a lime plant in the district of Karonga in northern Malawi.

In a Malawi Projects Investment Compendium Volume 4 published by the Malawi Investment and Trade Centre (MITC), MD for the Company John Swira says that the opportunity being offered has the capacity of generating more benefits and is a low risk investment.

“The current developers have invested over $800,000 to date, have installed production machinery and have ran batches of lime productions successfully,” says Swira.

He explains that the business process has brought the project to the point where it is possible to offer additional new investors the following benefits: 60% to 90% shareholding in Why Limestone Limited, a company which has a capacity of production of lime of 200 tones per month.

He says what is required for the project is financiers or equity partners who can inject money in order for the business to reach its full potential, or acquisition of the business is possible.

The project which is located in Northern part of Malawi in Karonga District, currently operational, already carried pre-feasibility studies, feasibility studies and other studies.   

Mining in Malawi is an under-explored activity accounting for about 1% of Gross Domestic Product (GDP) but it holds a great potential to develop Malawi’s economy and attract a great deal of investors.

According to the Geological Survey Department, an airborne geophysical survey conducted in 2015 revealed an abundance of mineral deposits including rare earth minerals, bauxite, uranium, graphite, vermiculite coal, gemstones, alluvial gold, monazite, limestone, phosphate, pyrite, glass sands, dimension stone and titanium heavy bearing mineral sands.

Formal mining activities are happening for coal, and lime while gemstones are extracted by small-scale miners.

In order to cultivate and sustain a conducive environment for growth of investments in the sector, the Government of Malawi reviewed and endorsed the Mines and Minerals Act of 2023.

The Government grants duty free and VAT free importation of mining equipment to investors in the mining sector.

In order to access the incentives, an investor is required to obtain a mining license from the Ministry of Mining.

Furthermore, the Department of Geological Survey set up a geo-data management platform to ease information access by investors and other stakeholders.

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