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Malawi |
ECONOMY
The efforts by the government to obtain international funding
for mining
the country’s mineral resources, seems to be paying off.
Exploitation of
mineral deposits has now commenced
for five projects in various parts of
the country
Some five mining projects have attracted funding from the European Union’s Centre for Development of Enterprises (CDE). The good news was revealed by the Malawi Development Corporation (MDC). The mining exploration is a joint venture between a local conglomerate of state-owned companies such as Press Corporation Limited (PCL) and Anglovaal Minerals; and the International Development Corporation (IDC).
All this results from a meeting in October 2000, held in Lusaka, Zambia, of a European Union-sponsored mining forum, called «Mines 2000», convened by the Southern Africa Development Community (SADC).
Phosphate mining project exploitation is taking place in Phalombe district, southern Malawi. This will boost the fertilizer industry, as phosphorous is a component of fertilizer. Vermiculite exploration is taking place in Mwanza district also in southern Malawi. In the northern Malawi district of Chitipa, blue granite rock is being exploited. Other projects include titanium in Salima district, central region; gemstone, dolomite lime, soapstone, in Mzimba, northern Malawi. Bauxite is being exploited in the southern region district of Mulanje on Mulanje mountain on the border with Mozambique.
MDC‘s deputy director of operations, Grain Malunga, says: «We have really made some progress. The five mining projects still in their first phase will succeed, and more potential international investors are showing interest to provide funding».
Diversifying the economy
Malawi relies heavily on agriculture. Tobacco provides 75% of its foreign exchange, but the leaf’s future is being threatened by the anti-smoking lobby spearheaded by the World Health Organisation (WHO); rising costs of production; over-production in other tobacco growing countries. The country’s economic stakeholders are therefore looking for export alternatives, and mining is deemed the answer.
The Geological and Survey Department says Malawi has up to 385 million tonnes reserves of various minerals that include gold, coal, iron sulphide, heavy mineral sands, graphite, silica sand, limestone, uranium — among others.
In an attempt to attract foreign investors, the Government has removed duty on mining equipment, and is also working towards formulating a new mining policy. Currently, the Geological and Survey Department, which comes under the Ministry of Natural Resources, has embarked on surveys to determine the quantities of various mineral deposits, so that investors can be sure of substantial mining activities.
The private sector, has, however, warned the government that it must involve them, since Malawi is competing with other countries in the region to attract potential investors in the mining industry. Dr Exely Silumbu, a senior economist at the Malawi Confederation of Chambers of Commerce and Industry (MCCI), has urged the government to speed up its survey and disclose the results, so that investors are aware of the quantities of various mineral deposits, available. «Mining is high technology-intensive —- investors are not looking just to Malawi — they want to know where they can make more profits,» says Silumbu.
The Malawi Export Promotion Agency (MIPA) has gone into full action to market Malawi’s minerals abroad, especially bauxite which is said to exist in large quantities on Mulanje Mountain, and which experts claim would be the immediate export alternative for Malawi’s agro-based economy. «There are a lot of potential miners who are interested in bauxite,» says MIPA‘s general manager, Ted Kalebe.
Environmentalists have warned that mining on Mulanje Mountain will destroy the environment, and are canvassing to protect flora, fauna and animal life, there, which is a source of attraction to foreign tourists (who also bring in much-needed foreign exchange). But following an intensive study on environmental concerns, the government decided no harm would come as measures will be put in place to conserve Mulanje Mountain’s ecosystem.
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