Mining & Trade News

By Modester Mwalija

Since 2021 the mining sector has experienced steady growth due to a supportive legal and regulatory environment that welcomes both local and international players, this is outlined in the 2023/2024 annual economic report published by the Ministry of Finance and Economic Affairs.

The report states that in 2023, the Mines and Minerals Act of 2019 was repealed to accommodate the establishment of the Mines and Minerals Regulatory Authority (MMRA).

“The MMRA has been established and has been assigned the licensing, inspection, and geological surveying functions to improve regulation and enforcement in the mining sector,” the report reads.

The report says that the Ministry launched its strategic plan for 2022–2027 and began its implementation, reaffirming the Ministry’s mission and strategic objectives.

“One of the initiatives implemented under the Strategic Plan was the completion of a mineral processing and research laboratory in Lilongwe and the installation of key equipment.”

The report further says as of December 31, 2023; the Ministry of Mining had collected 2023/24 revenue amounting to MK747,012,957.80. In total, the Ministry was expected to collect MK1,002,336,233.75, representing 3 percent growth over 2022/23 collection, largely due to increase in the number of mining license applications and revenue enhancement.

During the year under review, the Ministry of Mining, granted 546 various licenses to prospecting mining companies and individuals. 

“378 licenses were given to small scale operators namely 61 Non-Exclusive Prospecting Licenses, 168 Small-Scale Mining Licenses, 149 Reserved Minerals Licenses and 164 licenses were given to larger and medium operators including 106 Exploration Licenses, 28 Medium-Scale Mining Licenses, 1 Large-Scale Mining License, 32 Retention Licenses, 1 Reconnaissance License,” reads the report.

However, the report notes that despite these positive developments, the mining sector currently contributes only 1 percent to the national income as the sector still faces challenges including unreported income, smuggling, environmentally damaging practices, and health hazards associated with substandard mining methods, which pose significant concerns.

“Limited power supply, bad road and railway infrastructure, and other economic constraints elevate overhead and production costs, deterring investors and hindering sector growth,” says the report.

The report notes that to unlock mining sector growth, further policy reforms are necessary including streamlining the legal and regulatory framework, optimizing administrative procedures, enhancing oversight capabilities, and fostering local participation.

“Establishing robust support structures like reliable infrastructure and power supply is crucial to attract and retain investors,” it says.

The report also acknowledges that the ongoing projects in the form of strategic roads, railways, and power plants, which started in 2022/23 financial year, offer a positive outlook for the coming year.”

In the 2024/25 Fiscal Year, the government plans to undertake a number of interventions to foster productivity, transparency, and accountability in the sector so that it contributes significantly to inclusive wealth generation and economic growth in line with Malawi 2063.

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