Mining & Trade News

By Wahard Betha

The Ministry of Mining has assured players in the sector that it is ready and much prepared to fully implement the newly gazetted Mines and Minerals Act of 2023.

On June 28, 2024, Minister of Mining Monica Chang’anamuno gazetted the new Mines and Minerals Act of 2023 in so doing operationalising the Mining and Minerals Regulatory Authority, which has been formed under the new Act.

Director General (DG) for Mining and Minerals Regulatory Authority Samuel Sakhuta told Mining & Trade Review in an interview that the Government is ready to operationalize the Authority in accordance with the new Act but what has remained is recruitment of Board Members. 

Sakhuta said: “The government is very ready to move the new Act. The Authority has just started working but there are just a few gaps that are supposed to be filled to be fully fledged.”

“As you may be aware, the first step was to put the Act that has incorporated the Authority in place.”

“When it was commenced, the Authority had no DG, had no Board Members, but by July 31 the government had appointed the DG, meaning now we have the DG but the Board Members will be announced anytime soon. That is what we are pushing for because the DG cannot fully function without Board Members.”

Sakhuta said after the government announces the names of the Board Members, next will be induction of those members to ensure that all members are conversant with processes in the country’s extractive industry.

He said: “They (Board Members) have to move in with common knowledge of how to conduct these things. You know that the DG will only act as head of the secretariat to make sure that all operations are done as required.”

“The previous Act had no Authority. We had the Commissioner who was implementing the Act while this time we have DG as the head, with the Board Members.”

“At some point the DG may also guide on how to operationalize some of the things that are technical in nature so that the Board does not make mistakes.”

Commenting on the development, Geoscience Consultant Ignatius Kamwanje expressed excitement towards enactment of the new Mines and Minerals Act saying it contains some of the changes that match the current status of the mining sector. 

Kamwanje said: “Am very happy to see that in the new Mines and Minerals Act there are some aspects that have been put in place which are in familiarity with the current trends.”

“For example, incorporation of the Community Development Agreement (CDA) which is like now empowering communities to have that sense of ownership of the mining project within their area.”

“It is one way of empowering communities at large and it is also giving communities an opportunity to have a tradeoff with the government and mining company,” he said.

Kamwanje advised the government to ensure strict enforcement of the regulations in order to successfully implement the Act.

Consulting Partner for Perekezi Consultants Chikomeni Manda commented that the key reforms introduced in the new Act will significantly promote transparency, accountability and sustainability in the industry.

Manda said through the establishment of clear guidelines for mining sector, the Act seeks to attract more investment and create a more conducive environment for growth and development.

He also commended the Act for addressing pertinent issues such as community engagement, environmental protection and revenue sharing which are crucial in ensuring that the benefits of mining are shared equitably among all stakeholders.  

Manda said: “The new Act is expected to bring significant changes to Malawi’s mineral sector by introducing stricter regulations and increasing transparency in the industry through the Authority.”

“This could lead to improved governance and accountability as well as attracting more foreign investment.”

“Additionally, the Act may also help to address issues such as illegal mining and environmental degradation, ultimately benefitting the country’s economy and local communities.”

On implementation, he said the government needs to establish monitoring systems to track progress and enforce penalties for non-compliance.

Manda said: “It is also crucial for the government to actively engage stakeholders including businesses and advocacy groups to gather feedback and make any necessary adjustments to the Act.”

“By taking these steps the government can help ensure that the Act is effectively implemented and achieves its intended goals.”

In a separate interview, Programs Coordinator for Natural Resources Justice Network (NRJN) Joy Chabwera called on government to expedite deployment of District Mining officers and collaborate with different stakeholders conducting different advocacy activities focusing on mining in order to successfully implement the Act.

“It is very important to recruit District Mining Officers because when you go to the Councils, there are currently no officers to assist you on mining issues,” Chabwera said.

He also urged the Ministry to exercise contract disclosure in line with Extractive Industry Transparency Initiative (EITI) standards.

 “We are also expecting collaboration with Civil Society Organizations (CSOs) in successful implementation of this Act,” said Chabwera.

He also tipped the government to scale up awareness campaign on mining issues so that many Malawians are able to understand how the industry can shore up the economy.

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