Mining reforms can boost value addition—ministry

Ministry of Mining has expressed optimism that proposed amendments to the Minerals Act 2023 will strengthen value addition, expand local participation and increase the sector’s contribution to the economy.

In an interview on Friday in Lilongwe, Secretary for Mining Rodwell Mzonde said that the reforms are designed to ensure that Malawi derives greater economic benefits from its mineral resources.

Mining activities in progress at Kangankunde Rare Earth

Project in Balaka District. | Nation

He said the proposed changes are expected to be tabled in the next meeting of Parliament.

The amendments include provisions promoting value addition, increasing local equity participation in mining projects and tightening the regulation of exploration activities.

Mzonde said exporting processed mineral products rather than raw minerals will create jobs, encourage industrialisation and raise mining’s contribution to gross domestic product.

He said: “We are going to increase local content in whatever the mining companies are doing, and in the process create more jobs in the mining sector.

“But most importantly is the contribution of the mining sector to economic activity. This consultation is helping us frame the Act in a way that facilitates the growth of the sector.”

The proposals have received broad support from industry stakeholders, although concerns remain over the capacity of small-scale miners and the country’s energy constraints.

Malawi Women in Mining Association president Ashley Simbeye welcomed the emphasis on value addition, but said many small-scale miners lacked the financial resources needed to acquire processing equipment.

“Looking at women, the financial capacity is not there to afford the machinery for value addition. It is only a few individuals who are currently adding value to their products,” she said.

Chamber of Mines and Energy president Maxwell Kazako described the reforms as proactive, but warned that inadequate electricity supply can undermine efforts to expand local processing.

He said large-scale mineral beneficiation required substantial and reliable power generation.

“Real mining operations require a lot of energy,” said. Kazako, who is also country manager for Sovereign Metals Limited.

He encouraged small-scale miners to form cooperatives to improve their access to financing for mining equipment and processing machinery.

The reforms come as Malawi seeks to position mining as a key pillar of economic growth under the Malawi 2063, the country’s long-term plan, which identifies the sector as a major driver of the country’s ambition to attain lower middle-income status by 2030 and upper middle-income status by 2063.

Mining currently contributes about one percent of the economy, according to 2026 Malawi Government Annual Economic Report.

However, its contribution was significantly higher before 2014, when production at the Kayelekera Uranium Mine in Karonga District was in full swing.

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