Mining has been given “high priority” status by the small, landlocked African country of Malawi, in an ambitious attempt to diversify the country’s economic base. Speaking last week at the 2012 Paydirt Africa Downunder conference, Malawi Minister for Energy and Mining, Right Hon Cassim Chilupha, said the new strategy was in recognition that the global mining sector has significant potential to contribute to the economic growth and development of the country.”The mining sector is currently still very small despite the country’s favourable geology, and already identified mineral endowment,” Minister Chilupha said.
“The mineral resource base is very diverse with a high untapped resource potential. The sector is currently dominated by uranium and coal mining, as well as rock aggregate and limestone quarrying,” he said.
“Until 2009, mining was contributing less than 3% to our GDP and its contribution to export earnings was equally low. Lately, the share of mining to GDP has risen to 10% following the opening of the Kayelekera uranium mine, and we expect that this will increase to at least 20% when other known mineral resources are developed.”
Chilupha said as well as Malawi’s already known mineral resource base, the potential existed for the discovery of “high value” minerals such as rare earth metals, gold, diamond and platinum group metals in the country.
He said various private companies were currently engaged in exploration in Malawi, ranging from basic exploration to detailed feasibility studies throughout the country.
A number have initiated mining activities, he said.
Chilupha said the Malawi Government continued to support initiatives to improve support infrastructure and essential services in the mineral sector, especially in the critical areas of energy supply, transport and communication. “We believe good infrastructure is essential to the development of our country’s mining sector.”
“Our Government also recognises the need to establish a conducive environment in order to attract investment in the minerals sector,” he said.
“Our strategy is to guide and direct mineral development while stressing private sector investment. Our focus is on playing a role of facilitating – rather than regulating – private or foreign direct investment.
“This gives rise to the need for an appropriate comprehensive policy to guide the development of this sector and meet the challenges presented by the changes in the sector – both locally and globally.”
Chilupha said the Malawi Government had just approved a new Mines and Mineral Policy. Following the approval of this new policy, the country’s mining laws in Malawi are being reviewed to make it competitive and attractive.
“The Government will re-examine the institutional, regulatory and fiscal framework to ensure that investing in the mining sector in Malawi becomes simplified,” he said.
“Institutions responsible for regulating the sector will be re-structured so that the lead times for grant of mineral rights are minimised and the process simplified.
“The new mining law will put in place a clear, transparent and equitable regulatory framework for the mineral sector.”