Government Clarifies Mining License Revocation Amidst Industry Confusion

The Malawi government has moved to clear up confusion surrounding the revocation of mining licenses, stating that only the export of gemstones and precious minerals has been banned, along with the issuance of new export permits.

This clarification comes after an earlier announcement sparked tension and uncertainty within the industry.

According to the Mining Ministry, the decision aims to “sanitize” the mining industry by introducing reforms that promote efficiency and transparency in mineral rights administration.

The ministry has advised investors and companies to continue operating, disregarding earlier reports of a blanket ban on mining activities.

The confusion arose from a misquote by the media of Vice President Dr. Michael Usi’s statements during a meeting with stakeholders, including ministers and representatives from the Malawi Revenue Authority (MRA) and the Reserve Bank of Malawi (RBM).

Minister of Mining Ken Zikhale Ng’oma expressed the Vice President’s concerns over alleged collusion between foreign nationals and locals to source precious stones at low prices.

Ng’oma cited an example where 5,700 kilograms of gemstones were valued at just 2 million Kwacha, highlighting the significant undervaluation of Malawi’s precious stones.

Several companies requested clarification and additional time to verify the authenticity of the circular.

Investor, Frank Tumpale Mwenefumbo initially expressed concerns over the decision, calling it unlawful and counterproductive to the growth of the mining sector.

“The decision cannot be located in any law files in the face of the much touted ATM strategy which the State President adequately advocate in his State of the Nation Address,” wrote Mwenefumbo.

However, he later withdrew his Facebook post after the Vice President explained that he was misquoted by the media.