Malawi has started reviewing its mining laws to ensure that the country realises optimum benefits from this largely unexploited sector.
Natural Resources, Energy and Mining Minister Atupele Muluzi says the review will address the deficiencies in the current Act and align it with global trends and the aspirations of Malawians.
“Sustainable development of the minerals sector depends on a sound and comprehensive Mines and Minerals Act that takes into account prevailing best international practices and enables Malawians to realise optimal benefits.”
Muluzi has asked for active participation of all stakeholders in the review process. “We need to put in place a viable and transparent fiscal regime that attracts investors, effectively regulates the transfer of foreign earnings, ensures that a substantial amount of revenue is retained in Malawi and promotes and protects local Malawians investing in the industry,” says Muluzi.
The review process will deal with meaningful participation by locals in the mining sector.
“In the same vein, the new Act should facilitate local and foreign joint ventures that aim at empowering local entrepreneurs,” says Muluzi.
He highlights the need for the Act to provide for the establishment of training and research institutions to produce the necessary skills and acquire modern technologies for the development of the minerals sector.
Says Muluzi: “There is also the need for local content provisions in the delivery of various services to the mining industry and the need to promote . . . corporate social responsibility in the minerals sector.
“Other issues to be considered include safety and health, the types of licences and their renewal periods, effective administration of the Act and ownership of mineral reasources.
“As stated by State President Professor Arthur Peter Mutharika in his State of the Nation address, the establishment of a mining contracts negotiating unit in the Ministry is another important issue worthy of consideration.”
The mining law review project is being implemented under the auspicies of the Mining Governance and Growth Support Project, which is being financed by the World Bank’s International Development Association and the European Union.