Mining law review on track to deliver 'greater benefits' for Malawi

Malawi's government has declared itself delighted with progress on a sweeping review of the country's Mines and Minerals Act, insisting the shake-up is firmly on track to deliver a modern, clear and responsive legal framework for the nation's booming mineral sector.

Principal Secretary for Mining, Rodwell Mzonde, revealed the review is advancing well as part of government's ongoing drive to strengthen the mining sector and ensure Malawi and its people finally reap greater rewards from the country's rich mineral wealth.

Mzonde was quick to stress that the review does not amount to scrapping the Mines and Minerals Act, 2023, which currently governs the regulation and licensing of mining activities, as well as the establishment of the Mining and Minerals Regulatory Authority.

"The review should not be interpreted as a rejection of the Mines and Minerals Act, 2023. Rather, experience with the legislative framework and developments in the mineral sector has identified areas where the law can be clarified, strengthened and improved," Mzonde explained.

He said the review is squarely focused on modernising the legislative framework, closing critical legal and regulatory gaps, strengthening protections for responsible and predictable mineral investment, and securing greater, more sustainable benefits for the country as a whole.

Mzonde revealed the review has factored in a wave of positive developments across the sector, including the emergence of strategically vital mineral projects and surging interest in critical minerals such as rutile, graphite and rare earths, alongside fresh opportunities for value addition and local participation throughout the mining value chain.

The PS said government is particularly encouraged by progress examining licensing and mineral-right administration, compliance and enforcement, institutional coordination, community participation and benefits, local content, value addition, mineral reporting and data management, and the administration of strategic mineral developments.

On community benefits specifically, Mzonde said government is satisfied the review is strengthening vital provisions to ensure responsible mineral development delivers real, tangible benefits for host communities, including clearer rules on Community Development Agreements, compensation and resettlement, environmental responsibilities, and mine closure and rehabilitation.

He added that solid progress is being made on measures to ensure mineral rights only end up in the hands of applicants with genuine technical, financial and operational capacity to actually undertake mining activities, alongside efforts to formalise and grow artisanal and small-scale mining operations.

On value addition, Mzonde confirmed government is pleased with progress toward Malawi progressively capturing a far greater share of value from its mineral resources through beneficiation and in-country processing, while ensuring such requirements remain realistic both technically and economically.

Further progress has reportedly been made on strengthening mineral production and sales reporting, mineral valuation and royalty administration, and improving information-sharing between institutions responsible for mining regulation, taxation, customs and financial oversight.

Mzonde revealed the review is being conducted within the broader framework of Malawi 2063, taking careful account of transparency and accountability issues, including disclosure, beneficial ownership, and compliance with international standards such as the Extractive Industries Transparency Initiative (EITI).

He praised the level of stakeholder engagement throughout the process, which has drawn in mining companies, artisanal and small-scale miners, host communities, traditional leaders, civil society organisations, professional bodies, investors and development partners, including women and youth representatives.

While acknowledging that Malawi continues drawing valuable lessons from established mineral-producing nations including Zambia, Botswana and Tanzania, Mzonde insisted the revised framework will be firmly tailored to Malawi's own constitutional and legal system, mineral endowment and national development priorities.

He expressed confidence the review will ultimately deliver a modern, clear, predictable and enforceable framework capable of attracting responsible mineral investment, while securing greater and more sustainable benefits for Malawi and its people.

Once the technical and consultative processes are complete, the proposed amendments will proceed through the appropriate government policy and legislative procedures, including formal consideration by Cabinet and Parliament.