Africa-Press – Malawi. An Australian-based company, Sovereign Metals risks losing its mining license of graphite as the mining land allocation is near the Lilongwe Dam catchment area.
Chairperson for the Natural Resources Committee, Welani Chilenga said this on Wednesday during an interface meeting with Lilongwe Water Board, Malawi Environment Protection Authority (MEPA), and the Ministry of Mining.
Chilenga said the country can not risk having mining activities 200 metres from Kamuzu Dam which is the main source of Lilongwe’s water supply. Chilenga said the committee can not recommend the Australian company to clear 130 hectares from the catchment for mining activities.
“For us to recommend the clearing of 130 hectares in the catchment area it’s a risk to the lives of people in the capital city,” said Chilenga.
In his remarks, Ministry of Mining Geological Surveyor, Stanley Nyama said the ministry reviewed the survey made by Sovereign Metals but they are waiting for an Independent review from the Environment and Social Impact Assessment (EASIA).
He said they will work hand in hand with MEPA and the National Water Resource Authority (NWRA) to come up with a conclusion on the matter. Sovereign Metals raised gross proceeds of US$6.5 million through an issue of 59.1 million shares, priced at US$0.11 a share, for developing the Malingunde graphite project.
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