The policy is a logical extension of the Malawi Growth and Development Strategy (MGDS), which identifies mining as one of the sectors that could potentially generate economic growth for the country, mining minister John Bande said during the launch in Lilongwe.
He said the mines and minerals policy was a legal framework that would help promote best practices within the sector.
“The policy is one of the things that we needed to have; what it seeks to achieve basically is to give guidance as to how the locals will benefit.
“It gives a framework on how the small scale miners can be developed technologically and to empower them financially so that they can be exposed in the drive to eradicate poverty,” said Bande.
He said the country has abundant mineral resources that can be sustainably exploited to contribute to the government’s vision of transforming the country from a predominantly importing and consuming nation into one that is predominantly producing and exporting.
He observed that mining had in recent past been contributing less than three percent to the Growth Domestic Product (GDP) and equally low to export earnings.
Bande however stated that the contribution to the GDP has since risen to 10 percent following the opening of the Kayelekela Uranium Mine.
“It is Government’s conviction that if the country’s mineral resources are fully exploited, the contribution of mining will increase to at least 20 percent within the next 10 years,” he added.
He said through the policy government seeks to guide and direct mineral resource development by stressing private sector initiatives and involvement and the need to attract modern technology and investment capital.
Principal Secretary in the ministry Leonard Kalindakafe added:“The policy was formulated through consultations with all stakeholders ranging from small scale miners, traditional authorities, government departments; verbal and written inputs were welcomed from many individuals and organizations.
According Kalindakafe said the policy represents aspirations of individuals, private entities and public sector.
He said the policy seeks to stimulate and guide private mining investment by administering, regulating and facilitating the growth of the sector through a well-organized and efficient institutional framework.
“The Government of Malawi recognizes that the mining sector has a significant potential to contribute towards the rapid economic growth and development of the country, currently the sector is still very small despite its favourable geology and known mineral potential,” he said.
The Mines and Minerals Policy is presented in six themes: Mineral Development, Investment Climate in the minerals sector, Government, Environmental Management, social issues, and Regional and International Cooperation.
The goal of the Mines and Minerals Policy is to enhance the contribution of mineral resources to the economy of the country so as to move from being agro-based to mineral based economy.
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