New Mining Policy to Boost Dwindling Economy

As Malawi continues to lose out on several deals between the government and international miners, a policy aimed at governing the sector has been launched.

Minister of Mines John Bande said Wednesday that the policy further aims at promoting the mines and mineral sector in the country so that the sector starts contributing significantly to the country’s economy.

“The Policy has identified issues which impinge on the Governments vision to have mining contributing significantly to both the GDP and foreign reserves. It has identified and addressed the expectations of both local and foreign investors, and to meaningfully participate in the Mining Sector,” said Bande at the launch n Lilongwe.

Statistics indicate that prior to 2009 contribution of mining to the Gross Domestic Produce was at 3 percent but rose to 10 percent in 2009 after the opening of the Kayelekera Uranium Mine.

The contribution of the mining sector is expected to increase to at least by 20% of the GDP by the year 2016 according to Bande.

If well managed, mineral resources in the country have the capacity to effectively contribute to the country’s ago-based economy.

Currently mining in Malawi is primarily concerned with the production of raw minerals that are used elsewhere as raw materials in downstream industries; hence its contribution to the economy remains minimal.

“In order to get maximum benefit from the mines and mineral sector, the country need to optimise mining activities within the country so as to enhance value addition,” said Bande.