Malawi Government has called on Malawians to stop making baseless accusations against investors, arguing such accusations scare investors.
Minister of Mining John Bande was speaking when he toured Eland Coal Mine at Mwabulambo and Kayelekera Uranium Mine in Karonga on Friday.
He said the country needs the investors to develop and strengthen its economy.
“As someone who was at the Ministry of Trade, such talks [accusations] are setbacks on investors,” he said.
Bande also called on mining companies to add value to their products to generate more foreign exchange for the country.
He said his ministry will ensure that the mining industry becomes the most reliable source of forex.
Eland Mining Company head of sales and marketing Mayamiko Mwinjiro said the company emphasises value adding; hence, it exports 85 percent of the coal it produces to Tanzania and Kenya.
“We produced pure coal that is why our coal is doing well on the international market. After crushing, the coal is separated from other materials with magnetite and the coal is washed with water. Buyers prefer washed coal,” said Mwinjiro
Paladin general manager Gregory Walker, whose company was recently accused of not doing enough social responsibility, an assertion which Paladin says is unfounded, said there is need for government to clear the bad image Paladin is branded with.
“Paladin has introduced $145 million in additional funding to sustain Kayelekera in 2010-11 and has made provision for a further $79 million this financial year. Paladin’s corporate loss in Financial Year [2012) was $ 172.8 million—up from $82.3 million.
“The Government of Malawi is a 15 percent stakeholder, but under the terms of the Development Agreement, has not been required to make any financial contribution to this financial burden, saving the government $27.75 million to-date,” said Walker.