Africa-Press – Malawi. -Malawi government is out of slumber to contain foreign traders invasion on Artisanal and Small-scale Miners (ASMs) in gold mines across the country.
Ministry of Mines through Reserve Bank of Malawi (RBM) is currently buying gold in ASMs as mandated by central bank laws. Despite the intervention, local gold miners are unhappy with low cost of buying gold while foreigners including Mozambicans offer higher prices.
The visit at Kulangala gold mine, Traditional Authority (T.A) Mazangera in Lilongwe rural revealed how local miners are being ripped off hard work in processing the mineral while getting peanuts upon sales.
Joseph Ashan told The Maravi Post that Mozambicans are offering better prices of MK48,000 per gram than RBM’s MK40,000 per/g. Ashan complained that despite forming cooperative in September 2020, there has no any support from government as promised.
“We are selling our gold to Mozambicans who offers good prices than Malawian buyers. This is contrary to what we were promised after forming cooperative. These foreigners are reaping us heavily that the time government will come in, no single gold is to be available.
“Currently, the cooperative isn’t running as established as individuals are own their own due to capital constraints for quality equipment purchase that our gold be fetching high prices. We want enough resources to establish outstanding cooperative gold mine,” he appeals.
According to Ashan, MK5 million will be enough to buy equipment for the cooperative’s operations saying gold mine deposits are very refined and powdery of 90%.
When contacted on low prices RBM is offering to local gold miners, Central Bank Spokesperson Ralph Tseka disputed the claims saying his institution was inline with the buying power price.
Tseka disclosed that the bank was still assessing the gold mine markets coupled with quality products before full scale of buying. “The bank has just joined the market of buying gold from locals a few months ago. We are currently assessing the market before we full roll out for buying. We want quality products.
“Its a responsibility of mines department and trade ministry that cooperatives are functional well for production of quality gold. The bank has enough funds to buy gold from locals, ” assures Tseka.
Perekezi ASM consultants however says, “RBM need to compete effectively with the foreign buyers to buy more gold otherwise a lot of gold will continue to be smuggled out of the country”. Minister of Mines Albert Mbawala acknowledged local gold miners challenges but assured them of technical and financial support.
Mbawala assured the nation of swift government intervention to contain foreigners on in local gold mines saying the ministry is engaging the law enforcers, relevant departments to address the matter. The minister disclosed that mines department will roll out intensive training to local gold miners coupled with soft loans from central bank
Natural Resources Justice Network (NRJN) official Kennedy Rashid says Civil Society Organisations (CSOs) in mining sector expect the current President Lazarus Chakwera’s Tonse government to revolve the industry with vigor for maximum revenue collection.
Rashid therefore urges authorities to support local gold miners with resources that they benefit from proceeds. Since 2020, 32 gold mine cooperatives have been registered that out of that only 16 have been given license for full operation.
Malawi’s Mining sector is still in infant stage as it contributes 1% to Gross Domestic Product (GDP) that if fully developed will generate 10% revenue.
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