‘Malawi Should Cancel Some Mining Licences – Chilima’ 5 August 2020

Malawi government is taking reforms to mining sector and control the trade in minerals with Vice-President Saulos Chilima holiding orientation meeting with with Minister of Mining Rashid Gaffar and officials from his ministry. Gaffar said the ministry is working major reforms to ensure that there are increased benefits to Malawians from mineral resources through review of Minerals and Mines Act of 1981. "To this effect, the new Act, gazetted in 2019, makes a requirement for a large scale mining holder to have a Community Development Agreement - like a long term Corporate Social Investment commitment - to ensure that communities in the vicinity of the mining operations benefit directly," said Gaffar.

The new legislation has led to increased Foreign Direct Investment, Improved transparency in doing business and increased access to geoscientific and mining information, pointed the minister. However, Chilima, who is also Minister of Economic Planning and Development and Public Sector Reforms, expressed dissatisfaction to the ministry that there are some companies which obtained mining licenses several years ago but are yet to go on the ground. He advised the Minister to seek legal advice so that such licenses should be revoked.

…"The Minister shall not grant an exploration license, retention license, medium scale mining license or large scale mining license unless the Mineral Resources Committee has recommended the respective application, and any grant of a license that contravenes this subsection shall be null and void," reads the Act. The new law entitles the government to acquire a free equity of up to 10% in any mining project that will be subject to a large scale mining license. It says any company that is a large-scale mining license holder and has provided free equity ownership interest to government shall have on its management committee or board, as the case maybe, a committee or board member nominated by the Minister responsible for Mines.