Mining & Trade News

By Modester Mwaija

As Malawi approaches the half way mark of the period for the implementation of 2022-2027 Mining Strategic Plan, concerns are growing over the sector’s slow progress. Chamber of Mines and Energy in Malawi and Civil Society Organisations (CSO’s) express concern that deep-rooted challenges are delaying efforts to move the country’s mining industry forward.

The strategic plan was designed to transform the mining landscape and boost economic growth. The plan sets forth a range of objectives aimed at increasing production, enhancing transparency, and ensuring that local communities benefit from mining activities.

“The strategic plan’s mission is to coordinate, facilitate and promote participation of all stakeholders in the sustainable development, utilization and management of mineral and petroleum resources for socioeconomic growth and development,” reads the plan

Grain Malunga, Coordinator for the Chamber of Mines and Energy, says the mineral sector is developing at a very slow pace due to insufficient financial and human resources.

“We still have not seen significant progress in establishing key institutions like the Mining Development Corporation and the National Mining Company and there has been no specific targets in investments, exploration and mining,” Malunga says.

He also says the sector is facing infrastructure challenges including lack of access to reliable energy and unreliable transport networks. 

Malunga, however, acknowledges that the current regulatory frameworks are adequate to promote transparency in the mining sector. These include Mines and Minerals Act 2023, Access to Information Law and Anti-Corruption Act.

Kennedy Rashid, National Coordinator for Natural Resources Justice Network (NRJN), raises concerns over the environmental impacts of unregulated and illegal mining activities, particularly in areas like Makanjira where some parts of the Namizimu forest have been cleared, and the chemicals that are being used by Artisanal and Small-scale Miners (ASMs) in Nkhatabay and Nkhotakota in streams where gold is being panned.

“The main concerns on the environmental side include deforestation, water pollution, air pollution, land degradation, and siltation,” says Rashid.

He says the challenges can only be addressed if the Ministry of Mining is financed and adequately staffed to carry out its functions and provide services to all scales of mining activities.

“There is a need to mainstream training or capacity building on responsible mining, and increased inspections and audits by both the Environmental Protection Authority, Malawi Human Rights Commission, and Mining Regulatory Authority,” says Rashid.

He also calls on government to mainstream open contracting, beneficial ownership disclosure, revenue transparency, environmental and social impact accountability.

“This can best be achieved if we could mainstream the Extractives Industry Transparency Initiative (EITI) standards and the African Mining Vision framework (AMV). We need to localize both the AMV and EITI standards but in consideration to our context thus in respect to our laws and regulations,” says Rashid.

Despite the current challenges, the future of Malawi’s mining sector appears promising, as stakeholders continue to push for reforms and improvements that will unlock the full potential of Malawi’s mineral wealth.

Leave a Comment

Comments