LILONGWE, Feb. 13 (Xinhua) -- Malawian President Peter Mutharika on Friday announced a package of tough measures targeting the mining sector, including the suspension of the issuance of all types of mining licenses, a full audit of the licensing registry, and a ban on the export of raw minerals pending a review of the legal and regulatory framework.
Mutharika outlined the measures in his State of the Nation Address (SONA) delivered at the opening of Parliament's national budget session in the capital city of Lilongwe.
Despite acknowledging that mining is a major contributor to Malawi's economic expansion, he pointed out that the industry does not bring in enough money for the nation.
According to the president, challenges facing the industry include inadequate and limited mineral exploration, gaps in the legal and regulatory framework, and limited capacity to negotiate mining development agreements.
"I have directed the Minister of Finance and the Minister responsible for Mining to enhance Malawi's capacity for negotiating Mining Development Agreements. Going forward, my government will capacitate the state-owned Malawi Mining Investment Company (MAMICO) to undertake detailed exploration of our mineral deposits," Mutharika said.
He added that the Malawi government is at an advanced stage of establishing a Sovereign Wealth Fund to ensure that proceeds from mining benefit Malawians.
Malawi's minerals include rare earth elements, uranium, graphite, bauxite and gemstones such as rubies and sapphires.
The Kasiya Rutile-Graphite Project is being carried out in Malawi by Sovereign Metals, an Australian company with its headquarters located in Perth. According to the president, the project's estimated 538 million tonnes of rutile deposits are some of the biggest in the world. ■