Miners fear fees could stall formalisation

Government’s decision to increase mining licence fees has sparked fears among artisanal and small-scale miners that the new charges could make formalisation unaffordable, leaving some operators trapped in subsistence mining.

The Mining and Minerals Regulatory Authority (MMRA) last week announced revised fees for various categories of mining licences, including an increase in the small-scale mining licence fee from K30 000 to K350 000.

Small-scale miners are now required to pay K350 000 for a licence. | Nation

In a notice dated November 5 2026, MMRA acting director general Lloyd Muhara said the revised charges vary according to the type and size of the licence.

The fee for a non-exclusive prospecting licence has increased from K10 000 to K315 000 per district while a reconnaissance licence will cost K525 000.

An exploration licence will attract K1.58 million while the retention licence fee has risen from K1.5 million to K8 million.

Large-scale mining licence charges now range from K5.6 million to K10.15 million, depending on the size of the licensed area while a reserved minerals licence will cost K525 000.

In separate interviews, Malawi Women in Mining Association president Ashley Simbeye and Federation of Artisanal and Small-scale Mining in Malawi president Percy Maleta said the increased charges could make it difficult for local operators, particularly those with limited financial resources, to obtain licences and sustain their businesses.

Simbeye said the revised charges could put formal mining beyond the reach of women, especially those in rural areas who struggle to raise money for licences.

“If women were already unable to afford K30 000, how can they afford K330 000? Many women in rural areas will not manage,” she said.

But Ministry of Mining deputy director Mphatso Kakosa defended the revised fees, saying previous charges were too low compared with those in other countries in the region.

Speaking in an interview yesterday, he said the adjustment was intended to help finance technical extension services for miners.

“The services include assistance with mineral marketing, safety, formalisation and the formation of cooperatives,” said Kakosa.

The fee increases have come amid calls by artisanal and small-scale miners for the government to resume issuing new mining licences following a prolonged suspension.

President Peter Mutharika announced the suspension on February 13 2026 during his State of the Nation Address to Parliament.

Government said the measures seek to review existing licences and mining agreements, thereby improving transparency and ensuring the country benefits more from its mineral resources.

However, the association said the suspension of licence issuance was taking too long, arguing that the changes could have been implemented without disrupting mining businesses.

Maleta said the restrictions on gemstone exports and the suspension of new licences made the period difficult for small-scale miners, with some unable to proceed with planned investments and operations.

However, mining expert and former minister of Mining Grain Malunga agreed that the higher fees could disadvantage genuine local operators who lacked the financial capacity to meet the new requirements.

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