Government has been challenged to closely monitor the operations of mining companies to ensure they are operating within dictates of their mining licenses.
This follows the striking of new mining deals between the government of Malawi and two mining companies namely Lotus Resources Limited which will be in charge of Kayelekera Uranium Mine in Karonga district and Lancaster Exploration Limited (BVI), which will see the commencement of mining Rare Earths at Songwe Hills in Phalombe.
According to the minister of mining Monica Chang’anamuno when combined, over two thousand new jobs will be created by the two companies with anticipated combined revenue of about $ 150 million per annum in royalties and taxes.
Commenting on the development, Paul Mvula, a mining governance advocate has told MIJ Online that learning from the past where some companies used to under-declare fortunes realized from mineral explorations, it is imperative for authorities to closely monitor operations of mining companies to avoid a repetition of the same.
“Government agencies need to regularly monitor mining activities to ensure that companies are operating in accordance with various regulations as stipulated in their mining licenses. We also need to ensure that these companies are not under declaring proceeds from their explorations so as to avoid taxes while they rip off the country in the process,” Mvula observed.
Meanwhile Mvula has pleaded with authorities to establish proper structures that will facilitate the employment of deserving Malawians in the said mining companies with an aim of necessitating skills transfer to young professionals in the extractive industry.
Despite having minerals with high economic value such as uranium, phosphates, bauxite, kaolinitic, coal, kyanite, limestones, rare earths, graphite, sulphides, titanium minerals, and vermiculite, Malawi’s mining sector accounts for only 1 percent of the country’s Gross Domestic Product.
0 Comments