Mining Minister Thoko Tembo inspecting investment at MAMICO Gold Trading Centre in Lilongwe
* As Malawi Mining Investment Company (MAMICO) is ready to begin gold purchasing at three initial Gold Trading Centres
* Equipment and personnel are in place, while NBS Bank and FDH Bank have committed to providing initial financing
By Duncan Mlanjira
A survey conducted by Malawi Mining Investment Company (MAMICO) identified more than 100 gold mining sites across 26 districts to provide miners with another formal market to help Malawi retain more value from its mineral resources.
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This was disclosed by MAMICO Chief Executive Officer, Prof. Leonard Kalindekafe when Minister of Mining, Thoko Tembo, toured MAMICO’s Gold Trading Centre in Lilongwe.
The Mining Ministry Media reports that Kalindekafe apppraised the Minister that the company is ready to commence gold purchasing at three initial Gold Trading Centres, pending documentation from the Reserve Bank of Malawi (RBM) confirming its purchase of the gold.
He added that equipment and personnel are in place, while NBS Bank and FDH Bank have committed to providing initial financing.
Prof. Kalindekafe during the interface with Minister Tembo
The CEO highlighted that formal gold trading could help Malawi address foreign exchange shortages, saying the country is estimated to be losing approximately US$700 million annually through gold smuggling.
He thus emphasised the need to formalise gold trading to ensure the country benefits from gold already being mined by artisanal and small-scale miners across the more than 100 identified mining sites.
He added that properly harnessing the resource could contribute over 6% of the country’s Gross Domestic Product (GDP) annually and strengthen foreign exchange reserves.
The equipment that has been acquired
Feasibility studies and piloting mining at the Gold Trading Centres were conducted including processing initiatives to ensure that the country benefits from its gold resources.
The formal gold trading initiative is expected to provide miners with accessible markets, curb smuggling and increase mining’s contribution to Malawi’s economic development.
Minister Tembo attested to that MAMICO’s initiative would complement Export Development Fund (EDF), while encouraging artisanal and small-scale miners to sell their gold through formal channels.
He further said the government is working with financial institutions, the private sector and other stakeholders to establish an effective gold-buying system, with competitive prices to attract miners.
He also highlighted efforts to promote responsible mining by supporting miners to access better equipment and adopt environmentally friendly mining practices.
The Minister thus commended MAMICO for the progress made in preparing the Gold Trading Centres, saying the initiative could help Malawi address its foreign exchange challenges.
The Minister acknowledged the investments made towards gold purchasing, including the acquisition of equipment and expressed optimism that MAMICO would soon begin purchasing gold from artisanal and small-scale miners, providing them with an additional formal market alongside the Export Development Fund.
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