Malawi plans new gold markets

Malawi government is planning to open gold buying centres in major mining areas from September to give miners legal markets for their gold and help stop smuggling.

Malawi Mining Investment Company (MAMICO) chief executive officer Professor Leonard Kalindekafe said the company had estimated that gold worth more than US$700 million leaves Malawi each year without going through government channels.

Kalindekafe said MAMICO reached the estimate after investigating gold markets in Dubai, London, India, and South Africa.

He said the company’s survey found gold mining taking place in 26 of Malawi’s 28 districts, with Likoma and Mchinji the only exceptions.

Kalindekafe: million dollars wealth of gold are stolen

Kalindekafe identified Kasungu, Mzimba, Lilongwe, Dwangwa, Makanjira, Nsanje, Nsanama, Chiradzulu and, Chikwawa as some of the main areas where gold is mined.

“Over 700 million dollars worth of gold is stolen from Malawi every year,” Kalindekafe said.

He said the gold leaves the country without passing through normal government channels.

“That is a big challenge, and we can not accept that,” he said.

To address the problem, Kalindekafe said MAMICO is working with FDH Bank, NBS Bank, and the Ministry of Mining to establish gold buying centres in mining areas, including Kasungu Boma.

He said the company is also planning mobile buying units that would visit mining areas on set days to buy gold directly from miners.

“For example, here, say on Friday, MAMICO can come here and buy gold, so people will know that Friday and Tuesday MAMICO will come to buy gold,” he said.

Kalindekafe said the plan could start in September if the necessary arrangements are completed.

The proposed centres are expected to make it easier for miners to sell gold to licensed buyers instead of relying on middlemen and unlicensed dealers.

Tembo: Miners should work together

Minister of Mining Thoko Tembo said the government is also putting gold miners into cooperatives to help improve their safety, protect the environment, and increase their earnings.

He said the government wants miners to work together so they can benefit more from the gold they produce.

Kalindekafe said MAMICO would work with the ministry to train cooperative members in mining methods, safety, and accounting.

At Galonje Mine in Chitanthamapiri, cooperative chairperson Joseph Mwale said gold mining could generate significant income, with some miners earning up to K20 million a month.

Mwale, however, asked the government to provide electricity to the mining area to support mining activities.

Meanwhile, Kasungu East legislator Alex Nkhoma urged the government to help people who own land where gold has been found to get mining equipment.

Nkhoma said many landowners are working as casual labourers for people who have money to invest in gold mining.

If the plan goes ahead, the new buying centres and mobile units will bring licensed gold buyers closer to mining communities and give the government a better way of tracking gold sales.