06/06/2026
CONSULTATIONS UNDERWAY TO REVIEW MINING LAW
By Wahard BETHA
The Ministry of Energy and Mining has embarked on consultation meetings to review the Mines and Minerals Act of 2023.
he Department of Mining says in an article on its page, it has embarked on the process of formulating the new Law in collaboration with the Mining and Minerals Regulatory Authority (MMRA), which is mandated to regulate and administer the mining sector
The article reads: “MMRA, as the statutory body mandated to regulate and administer the mining sector, has made notable progress since the 2023 Act came into force, including in processing licence applications, aligning the existing mining cadastre with the Act, issuing guidance, and engaging licence holders across all scales of operation.”
“However, through implementation, key policy and regulatory gaps have been identified that could hinder effective sector governance, limit revenue and developmental benefits, and create legal uncertainties affecting investor confidence and community trust.”
“This ongoing review reflects Government’s commitment to strengthening transparency, enhancing governance, and ensuring Malawi fully benefits from its mineral resources.”
Commenting on the development, President of the Federation of Artisanal and Small-Scale Mining in Malawi (FASMM) Percy Maleta commended the step taken by MMRA and the Department of Mines to strengthen the mining sector legal framework and expressed hope that other stakeholders will be fully consulted.
Maleta urged the authorities to consider increasing Small Scale Mining License (SSML) hectarage from 2ha to around 10ha and allow mechanisation as one way of modernizing the sector as well as extending Retention Mining License (RML) duration to at least three years for stability.
He also urged for introduction of an Artisanal Mining Licence at district level to drive formalization, consider reducing royalty to 1% on value-added minerals/gemstones to promote local beneficiation and; categorise licences by capital for instance, up to US$2M for small-scale, US$2M to $50M for medium and U$50M large scale to attract investment.
Maleta said: “On gold, allow licensed miners/dealers to export, with conditions, sell 20% to Reserve Bank of Malawi (RBM) and ensure full repatriation of export proceeds.”
“Also important is to structure licences across the value chain: artisanal, small, medium, large-scale, plus brokers, dealers, lapidaries, jewelers, smelters, refiners, to improve clarity, compliance, and revenue.”
“For inclusivity, quarrying, brick-making, and sand harvesting licences could be reserved for Malawians including cooperatives to empower locals.”
The reviewing of the Mines and Minerals Act of 2023 has come at a time when ASM subsector is a encountering a host of challenges including the ban on export of raw minerals, insufficient value addition laboratories, financial support and many others.
Mining Expert Ignatius Kamwanje asked the Ministry to conduct thorough consultations to ensure it addresses all the complaints waged by experts and Civil Society Organisations across the country.
Kamwanje said it is sad to see the Act being amended just after two years, saying this is a clear indication that many key stakeholders are not included during consultations.
He also added that the Ministry should consider adding to revising the tax regimes especially on large scale mining operations suggesting revision of royalty rates, corporate tax, resource rent tax, non-diluting equity, and stability period.
He said: “I have not seen much on auditing capacity and mechanisms through a tailored framework on illicit financial flows like smuggling or transfer pricing where companies have non-disclosure entities but operating on the chain creating tax havens, and the ring fencing mechanisms the country can take.”
“They should also work on a clear definition and specifications on mineral processing, beneficiation, refining as well as how much is included in the Act in terms of Regulatory Capacity for instance, monitoring the role of local government authorities.”
“The 2023 Act removed a mandatory 10 percent free carry equity for the government in large-scale projects, allowing the government to negotiate percentage ownership instead. This creates weak revenue bargaining power and the country loses a lot.”
On Managing Mining Development Agreement (MDA), Community Development Agreement (CDA), and Sovereign Wealth Funds, Kamwanje emphasized the need to come out clear in terms of transparency and ensuring total community inclusion in negotiations.
He said: “On ASM formalization, the sector remains poorly organized, making it difficult for workers to access finance, mining equipment, and secure markets.”
“The Act needs to be tough on workers’ safety and come up with robust specifications on safety standards, safety nets, guidelines, understanding that underground mines are limited or do not appear in the existing Act.”
However, Coordinator for Natural Resources Justice Network (NRJN) Kennedy Rashid bemoaned the rush to amend the law other than the outdated Mines and Minerals Policy.
Rashid noted that the current Mines and Minerals Act of 2023 and its proposed amendments were designed to operationalize the Mines and Minerals Policy of 2013 which is now 13 years old.
He said: “In a decade-plus, we have seen shifts in global mineral demand, artisanal and small-scale mining dynamics, environmental governance standards, fiscal regimes, and most importantly, Malawi’s own development blueprint, Malawi Vision 2063.”
“Our Vision 2063 prioritizes industrialization, wealth creation, environmental stewardship and local content and the 2013 policy does not adequately anchor these ambitions, which is vivid in the lack of recognition of green minerals.”
“It predates many of the governance innovations we now need like in the case of Environmental Social and Governance standards.”
Rashid disclosed that as NRJN they recommend that the revision of the Mines and Minerals Act must be paused or proceeded with caution, but only in parallel with or immediately after a comprehensive revision of the Mines and Minerals Policy of 2013.
Rashid said the policy must first be updated to reflect Vision 2063, climate-resilient mining, benefit-sharing mechanisms, community consent protocols, and transparent revenue management.
“Only then can the law be drafted and amended to faithfully respond to that updated policy.Otherwise, we will continue in a reactive cycle: a law chasing a policy that no longer represents our reality or aspirations. Let us get the policy right first. Then let the law follow,” he said.
