Project to explore minerals in Malawi

Thom Khanje
Daily Times

Malawi, with assistance from France, the World Bank and the European Union is about to start implementing a K5 billion comprehensive geological surveys project to establish the availability of minerals in the country’s soils and help the country attract more investment in the sector.

France’s envoy in Malawi Jacques Gascuel said in Lilongwe the project will be implemented over a 5-year period up to 2016 and will involved use of state-of-the-art equipment to undertake a first of its kind geo-mapping exercise in the country.

“The geo-mapping will be done in a more forensic way using airborne and other sophisticated equipment,” said Gascuel, whose government will contribute K2.1 billion into the project.

He disclosed that apart from his government’s contribution, which will come in a way of converted debt repayments from a written-off loan Malawi had with France, the World Bank has also committed to contribute K1.9 billion while the European Union is set to pump in K1.4 billion.

Finance Minister Ken Kandodo said the project was in line with the Malawi Growth and Development Strategy since mining sector development was one of the means for diversification of the country’s economy.

“The production of geo-maps is important as it enables miners to develop their investment plans for mining activities in a country,” said Kandodo.

The Ministry of Natural Resources, Energy and the Environment estimates that the contribution of mining to Malawi’s economy would increase to around 20 percent by 2015 because of increased exploration works, some of which are at an advanced stage and could translate into investment in the next 4 years.

Natural Resources, Energy and Environment Minister Grain Malunga said earlier that government’s policies in mining have now started translating into quality investments in the sector.

“The coming in of Paladin Energy Limited has created a lot of Australian interest in Malawi’s mining sector. That’s why we have seen companies like Globe Metals coming in to explore mining potentials in the country,” said Malunga

He said apart from the prospective Globe Metals’ venture at Kanyika in Mzimba where the company is expected to start mining niobium by 2013, the ministry also expects another major mining venture to start operating at Kangamkunde in Mwanza mining of a heavy metal called moazite is expected to start by 2012.

Malunga said two cement manufacturing companies, Cement Products in Mangochi and Deco in Golomoti, are also likely start their operations in the country using local materials by the end of next year while Shayona Cement Company in Kasungu has embarked on major expansion work of its plant which will see it increasing production substantially.

“Very soon, there will be no need for Malawi to continue importing cement. And the country will save a lot of foreign currency through import substitution,” said Malunga.

The minister said there is a total of 15 major prospective investors that are undertaking various exploration works in the country’s mining sector and another 100 smaller scale companies that are also looking for opportunities in mining.