Mining expert and former minister of Energy and Mining Grain Malunga has backed government’s intention to invest in a State mining company, saying the initiative remains critical to enhancing development of the sector.
Malunga’s comments follow President Lazarus Chakwera’s announcement last year that his government plans to establish a national mining company to facilitate development of the sector, which is among government’s priority sectors for economic growth.
In an interview on Wednesday, Malunga said State-owned mining companies have two strategic functions, one of which is to invest in strategic minerals that private sector players are not interested in.
He said: “For example, the State can invest in industrial minerals which are not high-value minerals, but are important in the growth of the local economy.”
He recalled that Portland Cement at Zomba Changalume was established by Malawi Development Corporation (MDC), a strategic decision from a State company.
In terms of prospects for the future of mining, Malunga said in the next two to three years, the sector should thrive with three to four mining companies starting extracting minerals that will transform the economy.
Principal Secretary in the Ministry of Mining Joseph Mkandawire said government needs K5 billion as seed capital in order to operationalise the State-owned mining company, National Mining Investment and Development Corporation (NMIDC), which was registered in March 2020.
Mkandawire said: “Government is resolute and more determined than ever before to catalyse the growth and sustainable development of the mining sector.”
In the initial phase, the Malawi Government issued exploration licences to Lancaster Exploration Limited, which is 100 percent owned by Mkango Resources Limited, to explore for rare earths at Songwe Hills in Phalombe and Salambidwe in Mwanza.
Others are Globe Metals and Mining exploring for niobium at Kanyika in Mzimba; Rift Valley Resources at Kangankude in Balaka and Akatswiri Holdings, which has been exploring for rare earths at Chambe Basin in Mulanje Mountain and the then Paladin Africa Limited (PAL) now owned by Lotus Resources Limited which is exploring and further developing the Kayelekera Mine in Karonga.
