Malawi Freedom Network 
By Suleman Chitera
Government is engaging banks and lending institutions to help small-scale gold miners access machinery and increase production, Mining Minister Thoko Tembo has said.
The lack of appropriate mining equipment is one of the major challenges hampering gold mining cooperatives in Malawi, Minister of Mining Thoko Tembo has said.
Tembo made the remarks on Friday after visiting Nanjiri Mining Cooperative in the area of Traditional Authority Chadza in Lilongwe District, where he inspected the cooperative’s activities and heard about challenges affecting its members.
The minister said government had started implementing measures aimed at promoting mining activities, particularly among small-scale miners, by facilitating access to appropriate machinery and other equipment.
According to Tembo, improved access to mining equipment would enable cooperatives to extract larger quantities of gold and increase their contribution to Malawi’s economy.
“We have already started talking to banks and other lending institutions to see if they can come in and provide loans to these cooperatives for machinery so that they can extract gold in larger volumes,” he said.
Government Wants Mining Through Cooperatives
Tembo said government’s priority was to encourage miners to operate through properly organized cooperatives.
He said an organized cooperative system would make it easier for small-scale miners to access government support, financing, equipment and technical assistance while also improving production and accountability within the sector.
The minister further urged gold mining cooperatives to sell their gold through authorized markets.
He said selling gold through legitimate channels would help miners secure better returns while ensuring that government collects revenue from the country’s mineral resources.
26 Districts Have Valuable Mineral Deposits
Meanwhile, Malawi Mining Investment Company (MAMICO) Executive Professor Leonard Kalindekafe said research conducted by the company had established that 26 districts across Malawi have deposits of various valuable minerals.
Kalindekafe said the findings highlighted the significant potential of Malawi’s mining sector and called for increased investment to enable the country to benefit more from its mineral wealth.
He, however, raised concern over gold smuggling, saying Malawi was losing significant amounts of gold through illegal trading.
According to Kalindekafe, more than US$700 million worth of gold is lost every year through smuggling.
He said MAMICO was also planning to establish a gold mining company that would focus on large-scale gold extraction.
Kalindekafe said the initiative would help increase gold production and enable Malawi to maximize economic benefits from its mineral resources.
Nanjiri Cooperative Seeks Mining Licence
Nanjiri Mining Cooperative Chairperson Stanley Yolamu said the cooperative had the potential to substantially increase gold production once it obtained a mining licence.
Yolamu said the cooperative was established last year and was prepared to expand its operations and contribute to the development of Malawi’s mining industry.
“We started our cooperative last year, but once we are given a mining license, we will be able to expand our mining activities in the area and contribute to the growth of the mining sector in the country,” he said.
He added that the cooperative was ready to work with government and other stakeholders to ensure that gold mining was conducted in an organized and sustainable manner.
Malawi’s Gold Mining Potential
The concerns raised at Nanjiri highlight some of the broader challenges facing Malawi’s emerging small-scale mining industry.
Limited access to modern equipment, financing, mining licences and formal markets can restrict the ability of small-scale miners to increase production and generate sustainable incomes.
Government’s efforts to connect mining cooperatives with financial institutions could therefore play an important role in helping miners acquire modern machinery and improve their operations.
At the same time, ensuring that gold is traded through authorized markets could help reduce smuggling, improve revenue collection and strengthen accountability across the mineral value chain.
With mineral deposits reportedly spread across 26 districts, increased investment, formalization of cooperatives and access to appropriate technology could position mining as an increasingly important contributor to Malawi’s economic development.
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