ISSUE NO. 48 April 2017 Mining & Business News that Matter Order Price: - MK1000

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Tilitonse project givesvoice to communities

in mining areas

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Success story forTonse Tipindule

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Malawi has opened up for drilling works whichexpatriate firms are expected to undertake as part ofexploration for hydrocarbons in the country’s stretchof the Great African Rift system, which has provento host oil and gas deposits in countries such as

Mozambique and Uganda.The development follows a public announcement by State

President Professor Arthur Peter Mutharika to allow oil explorationfirms use clean onshore technologies to explore for oil.“Those who worry about our plans to explore and drill oil have no

reason to fear because if we decide to drill oil in the lake, we willensure we use clean on-shore modern technologies that will preventoil pollution on our lake which we value most. We need to moveforward,” said Mutharika at the National Water Day conference inMangochi on March 22.

Malawi readyfor oil drillingBy Marcel Chimwala & Chiku Jere

President’s go-ahead essential politicalboost - ExpertTechnology available to apply onshoredrilling to study offshore traps

cont. on page 3 Mutharika: We need to move forward

NEWS & ANALYSIS April 20172

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EEDDIITTOORRIIAALL

‘Despite enormous efforts and resources committed to ensuring that minerals benefit citizens, theseinitiatives have failed to have any significant impact as we continue to attest to the signing of dubiousmining contracts; illicit financial flows; corruption; environmental destruction, and human rights abuses’,boldly claims Siphosami Malunga, Executive Director of the Open Society Initiative of Southern Africa,(Osisa) in the foreword to a research report that assesses progress made by ten countries in the SouthernAfrican Development Community on good mineral governance.

The Mineral Governance Barometer, launched at the Alternative Mining Indaba in February 2017, isthe first comprehensive, systematic, and comparative analysis of the sector in the region. It aims togenerate learning on how countries manage the mining sector and provides an empirical baseline.

The two key characteristics of countries that pursue ‘socially-desirable patterns of mineralgovernance’ are state capacity and accountability. Capacity refers to the state’s ability to manage thesector effectively through developing, implementing, monitoring and enforcing regulations, whileaccountability is the mechanisms that allow non-state actors to keep the state in check as it managesthe sector. These were measured through investigating laws and regulations, publically availableinformation on detection and enforcement, and participatory institutional mechanisms for accountability.The research suggests it is accountability and not state capacity that has more impact on a country’s recordin developing and implementing regulations.

Many features of the Africa Mining Vision appear to be missing from regulatory frameworks incountries and implementation is weak. In particular, while there are more effective regulations for labourand the environment, there are less for improving economic linkages (upstream, downstream and fiscallinkages) and for community impact. The authors suggest an explanation for the difference: environmentand labour regulations apply across industries, and regulations that relate to community impact andeconomic linkages are specific to the mineral sector. Another interpretation is that civil society may bebetter organised and equipped on labour and environmental issues, but ‘the affected constituencies in theother-issue areas are more geographically isolated (community impact) or sectorally fragmented (nationallinkages)’ (p.26).

Figure 1 shows the regulatory presence, which combines the existence of regulations with theirimplementation (the extent of state detection and punishment of non-compliance), across for issue-areas.Malawi performs best in managing the environment in relation to mining, but has significant work to dofor community impact and linkages. I believe with the new legislation to be tabled at the next sitting ofparliament that the introduction of community development agreements (and effective implementation)will improve this. The small size of the sector also perhaps explains ‘the lack of attention to communityimpact’ (p.35). The current development of a Malawi Country Mining Vision is the first step inimproving upstream, downstream and fiscal linkages in the nascent sector.

Figure 1. Regulatory Presence by Country and Issue-Area (p.28)Across the entire region, there is

work to be done to improve mineralgovernance, and this comes as no surprise,of course. The Barometer confirms thatmineral governance is ‘a set of linkedobligations upon mining companies, thestate, and ultimately citizens and civilsociety’ (p.37). An aggregate mineralgovernance score does not sufficientlycapture the challenges and strengths ofeach country, but Malawi sits among themiddle of countries with as score of 0.49against an average of 0.52.

The Barometer has been authored byRod Alence, Associate Professor ofInternational Relations at the Universityof Witswatersrand and by Afrobarometerco-founder and Professor of PoliticalStudies at the University of Cape Town,supported by a team of 10 in-countryresearchers. The Barometer is expectedto be produced every two yearsfollowing this pilot study.

Download a copy of the Barometer here: http://osisa.org/sites/default/files/osisa_barometer_report-finallowres.pdf

Finally State President Arthur Peter Mutharika,who strongly opposed the exploration of oil inMalawi, has changed tune and is talking positivelyabout the issue.In his speech in Mangochi on the commemoration

of the World Water Day, President Mutharika,whose government suspended oil exploration works

soon after taking over power in 2014, said while it is important to protectLake Malawi, the country has to move forward with an oil explorationprogramme using clean onshore drilling technology.We join industrialists who have already spoken in support of the

President’s change of heart as reported in our main article.Certainly, as industry commentators are quoted in our lead article,

investors will be attracted to risk their capital in the risky and capitalintensive oil prospecting sector if they hear such positive politicalstatements from the Head of State.However, what is surprising is the time it has taken for the Mutharika-

led government to make such a positive decision.The suspension of oil licences was effected in 2014 and now this is 2017

implying the tenement holders have been waiting to hear from thegovernment on the way forward for about three years while doingnothing on the ground.We find this retrogressive in this era when countries in the region are

competing to attract the same investors we are toying around with.One would conclude that the Democratic Progressive Party (DPP)

government was reluctant to allow oil exploration continue because someof the licences were granted under the reign of former President JoyceBanda.If such is the case, it is ridiculous because what the nation needs is

continuity not petty party politics which could deter investment.These investors are experts in their field and come into the country to

risk their money with the hope of reaping returns for their investment infuture and we find it absurd to detract them with such primitive politics.One would also conclude that Mutharika’s administration

dilly-dallied to give a go-ahead to oil exploration because it was scared ofpressure from non-governmental organizations which are against theprocess led by Oxfam Malawi, which recently released a report calling onthe government to suspend the process until the country developsadequate legal provisions.We find such fears unnecessary because a democratic government

would always engage the civil society and all other stakeholders and makea decision as urgently as possible so that concerned parties such asinvestors in this case are not distracted.In this vein, we find government’s delays to take a stand on oil

exploration a disincentive to investment and we hope the DPPadministration will prioritise being progressive other than retrogressiveon issues such as oil exploration, which are of utmost importance to theeconomic future of the country.As Mutharika said on World Water Day, we cannot manage to be

sleeping while countries in the region are gaining ground in exploring foroil resources

GGoovvtt’’ss iinnddeecciissiivveenneessss iiss aaddiissiinncceennttiivvee ttoo iinnvveessttmmeenntt

BY MARCEL CHIMWALA, PUBLISHING EDITOR

How does Malawi fare in the SouthernAfrica Mineral Governance Barometer?

April 2017 NEWS & ANALYSIS 3 Industry captains have, meanwhile,

commended Mutharika for the remarks saying theydemonstrate progressive and steward leadership as Malawineeds not to lag behind its neighbours in prospecting for oilresources.Head of Craton Resources, a Consulting firm working

in the country’s oil and gas prospecting subsector, JamesChatupa, told Mining & Trade Review that such politicalannouncements are what investors need to risk theircapital and invest in the oil subsector which is capitalintensive.Chatupa said: “The President’s go-ahead is an essential

political boost for oil exploration as all our regionalneighbours are proceeding with support for oil exploration.”“A positive view from the political leadership is what

foreign investors need to risk capital for oil exploration.”Asked whether the government’s recommendation for

onshore drilling will achieve the best results for thosecompanies with offshore tenements, Chatupa said acompany’s exploration philosophy and interpretation of thegeological environment are some of the options it ranks onwhether to drill onshore or offshore.“In most cases it is advisable to undertake seismic

surveys before deciding where to drill. Then there may bea chance of getting better results,” he said.Malawi Chamber of Mines and Energy has also

supported the President’s move to allow oil explorationcompanies to proceed with onshore exploratory drilling works.Coordinator for the Chamber, Grain Malunga, said

companies with off-shore tenements can use the angledrilling technology which is capable of producingsatisfactory results.Malunga said: “Using the available technology, we will

get results similar to those obtained through offshoredrilling. Note that the companies will benefit from nonexpenditure of drilling platforms which usually comprise oldocean ships which are designed for oceans and not narrowand rougher lakes like ours. Companies will benefit fromnon expenditure on appropriate drilling platforms.”The Malawi Government demarcated Malawi’s portion

of the African Rift System into six blocks which wereawarded to multinational oil exploration firms to explorefor hydrocarbons.Block 1 located onshore in northern Chitipa and

Karonga Districts was awarded to South Africa’s SacOilHoldings, Block 2 and 3 tenements located offshore in thenorthern part of Lake Malawi are held by Hamra Oil, RakGas MB45 Limited has Blocks 4 and 5 stretching fromNkhotakota, Salima and Dedza offshore and onshore downSouth to Machinga, Blantyre and Mulanje while Pacific Oilholds Block 6 tenement located in the Lower Shire Districtsof Chikwawa and Nsanje. Hamra Oil Country Manager Ali Azzuni earlier told

Mining & Trade Review that his company intends to carryout onshore oil drilling works as part of its explorationworks because it is more expensive to drill offshore anddoes not make economic sense with the prevailing low oilprices on the world market.Azzuni said Hamra Oil is in the process of assembling

a team of local and international geologists to execute thesurvey whose results will be essential in proving theavailability of oil reserves in Malawi.However, there have been suggestions from the civil

society led by British Non-Governmental Organisation,Oxfam, that Malawi is not yet ready for oil explorationbecause it does not have adequate legal implements in place.But Desk Officer for oil and gas at the Ministry of

Natural Resources, Energy and Mining, Cassius Chiwambo,said Malawi has in place a Petroleum (Exploration andProduction) Act which was approved in 1983 and in additionthe country reviewed the Regulation to the Act in 2009.“If you can see, all these were done prior to the award

of licenses in 2011,” said Chiwambo.He, however, said Government is in the process of

reviewing the petroleum policy so that it is in tandem with

modern best practices.Chiwambo explained that the drafting process of the

Terms of References (TORs) for an expert to review thePetroleum Act of 1983 has only been finalized and theexpectation is that the assignment will be advertised beforeJune, 2017.He said: “Currently, the government is working on its

Petroleum Policy which it wants to be ready by June, 2017.It will also be resuming the finalization of its ModelPetroleum Sharing Agreement (MPSA) so that togetherwith the Policy, the MPSA should also be ready by June.” “From around early April, 2017, government has planned

to conduct at least 21 consultative workshops, at district,regional and national level, on both of these assignments.”The Malawi Government suspended oil exploration for

a year soon after Mutharika ascended to power in 2014presidential elections following his victory over formerPresident Joyce Banda.Mutharika, who ordered a review on the award of the

licences, drove the oil and gas sub-sector into exasperationwhen he said Malawi was not in a hurry to kick-start oiland gas exploration.“Nobody should push us. We can even afford to wait

and leave the exploration for oil resources for futuregenerations,” he was quoted on state-funded MBC TV.Industrialists say such a lengthy suspension of the

prospecting activities has negatively affected the timing ofthe exploration licences.

“Under the Petroleum (Exploration and Production)Act, companies are normally granted a 4-Year Tenure forExploration, subject to renewal thereafter. Customarily, anydelays caused by government suspension of explorationoperations, would be compensated by an equivalentextension period. I would presume this was the case withthe 2014 suspensions,” said an industry commentator.A report reviewing the second phase of the

implementation of the Malawi Growth and DevelopmentStrategy released by the Ministry of Finance, EconomicPlanning and Development also faulted the suspensions.“Within the past four years, Malawi issued exploration

licences for all six blocks of oil and gas only to suspendthem and subject them to review. While sensible andnationalistic, this runs the risk of adding uncertainty to themining governance regime and raises political risk ratingand may affect the future cost of raising funds for miningventures in Malawi,” said the report. The discovery of commercial petroleum resources

along the African Rift System, as evidenced in Uganda andMozambique has raised interest from several multinationalcorporations to invest in Malawi’s Petroleum Sector. During the first round of applications in 2011, the

Malawi Government through the then Ministry of Miningreceived over 10 applications. The same trend was experienced in 2013 and is still

persisting up to date.

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Cartoon

...from front page

Chiwambo: The deals were guided under 1983 Petroleum Chatupa: Investors need such political announcements (Exploration and Production) Act and 2009 Regulation. to risk their capital in such capital-intensive projects

PROJECT FOCUS April 20174

Impoverished communities in mining areas havealways not adequately benefitted from miningprojects taking place in their respective areas thoughthey have silently played victim to effects of badmining practices owing to failure by private mining

firms to adhere to environmental management planscoupled with poor monitoring of mining activities bygovernment structures.But this is gradually becoming an occurrence of the past

thanks to Tonse Tipindule Project which Norwegian ChurchAid (NCA) has been implementing in partnership with otherfaith based organizations namely Catholic Commission forJustice and Peace (CCJP) of the Episcopal Conference ofMalawi (ECM), Church and Society Department of theCCAP Livingstonia Synod, Evangelical Association ofMalawi (EAM) and Qadria Muslim Association of Malawi(QMAM) with funding from Tilitonse Fund.Economic Justice Coordinator for NCA, Thokozani

Mapemba, says results of the project have so far indicatedthat hostility between mining investors and the communityin the districts targeted by the project has been reduced asthe project has successfully empowered communities toengage with the government and investors“The project has

gone a long way in contributing towards a transparent,accountable and responsive mining regime that benefits notonly mining companies but also the public includingcommunities from which mining is taking place, throughimproved citizen participation and positive engagementbetween Civil Society Organizations (CSOs), mininginvestors and government,” says Mapemba.

Tonse Tipindule Project has been implemented in nineselected mining districts with the faith based organizationsresponsible for different interventions at district andcommunity level which include Church and Society

responsible for Chitipa, Mzimba and Karonga, QMAM forBalaka and Mangochi and EAM for Mwanza, Phalombe,and Mulanje.Unlike the rest of the partners, CCJP has four main roles

and responsibilities which are leading all technicalprogrammatic aspects in conjunction with NCA,coordinating national level advocacy activities, providingtechnical support to all project partners in all districts andsupporting research components. NCA is also responsible for leading implementation of

quality assurance, monitoring and evaluation, procurementand general administration aspects of the project.“On national level, the project has registered successes.

For instance, through CCJP we have advocated for legalreforms to ensure that we have a mining regime thatbenefits local communities,” says CCJP’s ProgrammeOfficer for Extractives, Success Sikwese.He cites an interface meeting between Members of

Parliament and representatives of communities frommining areas which CCJP jointly organized with theCentre for Environmental Policy and Advocacy (CEPA) tolobby for the passing of the Revised Mines and MineralsBill as one of the necessary interventions brought about bythe Tonse Tipindule Project.The meeting brought together 15 community members

from Phalombe, Mzimba and Karonga and 25 members ofthe parliamentary committee on Natural Resources andClimate Change.Sikwese says: “The meeting successfully provided a

platform for communities and parliamentarians to engageon issues surrounding the Mines and Minerals Bill andother issues that are affecting the communities.”“During the meeting, communities demanded the

passing of the Mines and Minerals Bill, which shows thatthe communities are empowered and they are no longerdependent on CSOs to speak on their behalf and all theyrequire are the platform and spaces for expressing theirconcerns and demands.”“The MPs committed to veto the bill in order to ensure

that it addresses all the community concerns and the pass itinto law.”To advocate for the passing of the Mines and Minerals

Bill, NCA together with a local civil organization CitizenFor Justice also conducted a live debate on ZODIAK Radioin which community members, CSO members fromMalawi Women in Mining, Natural resources justicenetwork, NCA, CCJP and the chair for the parliamentarycommittee on Natural Resources and Climate Change werepart of the panel. cont. on page 9

By Marcel Chimwala

Success story for Tonse Tipindule Project• Communities are now empowered

to engage mining investors

• Project has coordinated national level advocacy activities

Nyala Mine’s Ntcheu CAG touring CSR activities from the investor; this includes an incinerator at the Katsekera Clinic

Mapemba emphasizing a point

Villumstad proposes a dialogue-oriented activism

April 2017 PROJECT FOCUS 5

It came unexpectedly. As every member of Mayeracommunity in Mangochi was busy with farmingactivities, a cell phone rang. “Who is this?” AskedMrs Stephano, the Chairlady of Mayera CAG as if

there was someone to respond to her, yet knowingly shewas alone. “Hello! This is Mr. Maluku, from Mangochi District

Council. You are wanted here together with three othermembers from Njereza and Mayera tomorrow,” sheaccepted without asking the agenda. When communicating to the other members of the

community, she just told them that the agenda of themeeting will be known at the council the following day.

As agreed, by 8 o’clock in the morning they were at theLands office at the District Council which is at a distanceof 50 kilometers from Mayera, an area with a sizeablelimestone deposit.

The Mayera area was marked for mining activities in2009 when the government of Malawi gave a mininglicense to a local company Cement Products Limited,which planned to mine limestone for cement production.From 2012, the company started its cement manufacturingoperations in the area using clinker bought from outsidethe country. In 2015 works on a clinker processing plantstarted and is expected to be in operation by April, 2017. The completion of the plant has seen the community

being subjected to the actual experiences of miningactivities as about 20 families from nine households havebeen marked to be displaced and are currently waiting fortheir compensation.But what triggered the council to call the Mayera CAG

chair? The process of opening the lime quarry mine has

started with the district council together with the miningcompany putting the beckons marking the boundariesof the mine. This was followed by the compensationassessment processes by the District Council. During the

assessment’s consultations, the council representativesprevented and tried to convince the mining victims that noone from the CAG should be part of the team followingthe compensation processes. However, Group Village HeadMapata stood his ground and the Mayera CAG put it clearthat they will follow the processes and ensure that theyprovide those targeted for compensation adequateinformation about the processes. This left the council with

no option but to call the CAG membership for a discussionat the district council offices. During the meeting, thecommunity representatives were asked to raise criticalissues for their area before the completion of thecompensation process but the CAG put it a point that thecouncil together with representatives of Mangochi networkof civil society organizations should go to Mayera anddiscuss the issues comprehensively with the community. The community’s strong stand came as a result of the

initiative that the Qadria Muslim Association of Malawi(QMAM) brought to the area. QMAM empowered thecommunities surrounding the CPL mining and factorylocations in Mangochi under the Tonse Tipindule Project,which aims at creating a mining regime that benefits allMalawians. QMAM raised the capacity of local people in different

areas ranging from the legal framework of the miningsector to the rights of the communities as well as therelocation and compensation issues. From the initiation of the project in November, 2014,

the community has changed greatly from being backbencher spectators on their own land to being a responsivecommunity, strong enough to repel any moves aimed atreaping them of their entitlement. “The officers from the Lands Department came and

explained to us how issues of compensation need to behandled. We cannot, therefore, stand idle but ensure thatwhat they trained us is really followed in the process,” saidMrs. Stephano. Her statements attest to the fact that due to the magic

wand unleashed by Tilitonse Fund in the form of the TonseTipindule Project, people of Mayera and Njeleza areempowered to fight for far compensation

Tilitonse project givesvoice to communities in mining areasThe second phase of the Tonse Tipindule project, which Norwegian Church Aid has executed with itspartners namely Catholic Commission for Justice and Peace (CCJP) of the Episcopal Conference of Malawi(ECM), Church and Society Department of the CCAP Livingstonia Synod, Evangelical Association ofMalawi (EAM) and Qadria Muslim Association of Malawi (QMAM) with funding from the Tilitonse Fund,has produced exciting results which include giving a voice to communities in mining areas. Courtesy of NCAand its partners, Mining & Trade Review has compiled the following case studies which outline how farTonse Tipindule has gone in empowering rural communities, who are always sidelined by authorities onmining issues though exposed to environmental dangers posed by the industry:

Community voice changestune of District Council by Biswas Ismael, QMAM Programmes Officer

Biswas speaking to Mangochi Mayera mining community

Mangochi community taking action: Marching to District Council to demand the appointment of District Mining Officer

PROJECT FOCUS April 20176

After dragging Portuguese multinationalMota-Engi l to the Distr ic t Counci l inDecember 2015 for not giving the communitythe approved compensation for the destruction

of gardens and crops during their drills and roadconstruction works conducted as part of a mineralexploration programme, the members of the communityhave engaged lawyers to negotiate or take Mota-Engil tocourt for failing to compensate them.Namisu, an area in TA Phambala is at a distance of 30

Km from Senzani area along the Zalewa road and at some75 km from Ntcheu Boma. The area, which has a lot ofhills, is a source of two rivers: Lisungwi and Likudzi whichhave for a long time exposed the hidden treasure of the areaby washing down- stream some gold particles from thehills around Namisu. On one beautiful morning some five years ago, GVH

Kanama and his family were about to take their morningmeal when they saw foreign people in his village. Whenhe enquired he was told it was Mota -Engil, one of the giantforeign companies operating in Malawi and it was there tostay. The community could not have any substance in theirspeech as the word government to them was a silencer.Mota-Engil has been in the area for over five years

exploring gold and other minerals. Three years ago, theNtcheu District Council together with the company madecompensation calculations for the crops and gardensdamaged during the exploration drills and roadconstruction. GVH Kanama and his sister were among thevictims of these drills as crops were destroyed, trees cut

and gardens altered by the roads. The air of hope came to GVH Kanama and other

affected people when officials from Lands and Environ-mental Affairs Departments from Ntcheu boma visited thearea and made compensation calculations which were ac-cepted by the community, the district council and MotaEngil itself. On a sad note, later Mota Engil, according toGVH Kanama, said that it cannot honor its pledge becausethe amount was higher than the damage they had caused.The people did not know what to do and had nowhere to

make their claim. In October, 2015 the Qadria Muslim Association of

Malawi, under the banner of Tonse Tipindule Project wentto Namisu and sensitized the people of their rights anddeserving benefits from the mining company. This broughta sign of life again to the people of Namisu. GVH Kanamasaid he could see a change from “Tonse Tipwetekeke (all ofus are going to be hurt)” to “Tonse Tipindule”. The

community could not hesitate but to approach for aninterface with the mining company. However, to thedismay of everybody their request hit a snag. Then thecommunity went to the District Council demanding thatMota Engil pays them their compensation but still thecompany stood its ground. Few days later, Mota Engil informed the community

that they were relocating their camp from Namisu toanother unspecified location. GVH Kanama and his peoplehave since sort the services of a lawyer to get theircompensation

In 2013, Church and Society Programme (CSP) engagedNthalire community in Chitipa with an objective tosensitize communities there on mining governance. Thelocal stakeholders including Traditional Authority for thearea welcomed CSP. Later, a committee of about 30people was formed to act as a bridge between the projectsecretariat in Mzuzu and the wider local community. Thisgroup later came to be known as Nthalire CommunityAction Group (CAG).Over the years, the group has been sensitized in a

number of areas. Some of these include rights basedapproach to development, understanding extractivesindustry in Malawi, governance and extractive industry,transparency and accountability in mining, mininglegis la t ion and pol ic ies in Malawi, communitydevelopment agreements, advocacy and lobbying, laborissues in Malawi and monitoring human rights violationswithin the extractives industry. After being thoroughly capacitated, Nthalire CAG

ensured that knowledge and skills gained were effectivelytrickled down to the rest of the community. They did thisthrough organized community meetings, local plays, musicand door to door meetings. The group also took to taskindividuals who violated the rights of others withinNthalire. Thus, on numerous occasions the group wascalled in to intervene in situations where some investorswere stopped from taking samples from the area due tolack of proper documentation. Despite numerous efforts already highlighted above in

order to reach out to the entire community, it became clearthat the illiterate and those in hard to reach areas or theoutskirts / remote parts of Nthalire were not reached. Inorder to reach out to this population, the group partneredwith Nthalire community radio which operates in the area.This radio station covers a 100 km radius within Nthalireand beyond. Using support from the project, the group andradio station’s programmers designed a sponsored radioprogram that runs for 30 minutes. The group secured20 radio slots and designed the program to run untilNovember, 2016. Owing to continuous intermittent powersupply that affected airing of some programs, additionalradio slots were given for free to the group. These slotscontinue to run until now. Through these sponsored radio programs, the group has

managed to hold round table discussions and interactedwith listeners from across the area through short messagesas well as phone in programs. In the initial programs,the group started by introducing itself, its objectives,composition, area of jurisdiction as well as the objectivesof the program. Later the program dwelt on sensitizing thecommunity on the aforementioned areas. During theprograms, the community made their comments,observations, asked questions to which they wereresponded, and raised up their fears. The program againprovided a platform where community members reportedto the entire Nthalire thorny mining governance issueswithin their areas and how they dealt with some of them. Through these radio programs, Nthalire CAG has

managed to win the support of its local structures such asArea Development Committee, chiefs and local civilsociety organizations. They have since proven critical inpromoting and protecting the rights of people aroundmining issues. The radio programs have again profiledCAG as a credible local advocacy group on mining issuesin the area which is critical for sustainability purposes. Itcan, therefore, be said without fear of contradiction thatpeople’s knowledge and skills around mining governancewithin the 100km radius have greatly improved

Nthalire CAG partners alocal community radioand scales up awarenesscampaign around mininggovernance

by Biswas Ismael, QMAM Programmes Officer

Community engages lawyersover unpaid compensation from Mota-Engil

GVH Kanama and some of the villagers in Namisu (Ntcheu) are yet to be compensated by Mota Engil-pic QMAM

District officials at Ntcheu Mining Indaba

April 2017 PROJECT FOCUS 7

Around September, 2016 an Area DevelopmentCommittee (ADC) meeting was held at Emfeniin Traditional Authority Mabulabo in Mzimbadistrict. The meeting was patronized by all

members of ADC, Councilors, Member of Parliament(MP) plus civil society organizations. Among other issues,the MP was demanded to spare time and appreciate thesuffering of the people in Kanyika. The MP was alsoblamed for not showing any interest to support Kanyikacommunity by raising the issue in Parliament. This angeredthe MP. Later in the month, the MP held a political rallywhere she accused CSOs, chiefs and the people of Kanyikaof spreading lies and rumors against her in an effort to tar-nish her credibility as an MP.The MP effectively told off Kanyika Mining Native

Forum (KAMNAF), chiefs and civil society groups in thearea. This angered chiefs and KAMNAF members whothought their MP had overstepped her boundary. Thecommunity through KAMNAF organized to meet the MPand hit back. The MP was tipped about this and shechose to turn down any appointment that the Kanyikacommunity proposed. Since October, 2016, the MPremained unwilling to meet the chiefs and KAMNAF. This

increased anger among the community. For over eight months, KAMNAF and their chiefs

failed to successfully meet their MP over a round tablediscussion to resolve their differences. KAMNAF wasconvinced that this rift was unhealthy. It meant that their

MP had ceased to represent them and would not voice outany of their concerns even in Parliament. KAMNAF agreedto make amends with the MP at any cost. They agreed notto hit back at the MP but rather engage in reconciliation. With the change of attitude, on May 21, 2016, the MP

bowed down and agreed to meet KAMNAF at EntandweniCCAP. The MP expected that the meeting would be fullof finger pointing and accusations. To her surprise, themeeting was sober. The group and the chiefs called for arenewed working relationship with their MP. The MPapologized for taking too long to respond to their call. Shesaid that she thought KAMNAF wanted to humiliate her infront of her constituents. During the meeting, KAMNAFraised to her problems that the people of Kanyikawere experiencing. They included hunger, poverty andunavailability of clean water. In response, the Member ofParliament informed the group that she would work withthem to resolve the said problems. The MP promised torehabilitate some of the dilapidated houses that belongedto the victims of relocation in the area. She also asked thatgroup to go back to the community and reprioritize theirissues and organize another meeting where they will agreeand plan together on how best to address their challenges.

In closing, the MP called upon the people of Kanyikato feel free to consult her on anything. The MP asked thecommunity members to forget about the rift that hadexisted between them. KAMNAF, chiefs and the MP wereall happy that the long awaited meeting had finally taken

place and that all their differences were sorted out.KAMANF has once again successfully lobbied the supportof their MP in the area. This is very encouraging since theproject now enjoys good cordial working relationship withtheir MP and can now strategize together on how best toengage government and the mining investor in their area. The Kanyika Community has displayed all this courage

to engage stakeholders including the MP, the investor andthe government all because of the support it has from theChurch and Society Department of the Livingstonia Synod,which has empowered the community through awarenessprogrammes on their right to be included on decisionmaking regarding mining issues.Australian group, Globe Metals and Mining, holds

mineral rights for the Kanyika area and is mobilizingfinancing partners to launch mining operations at the siteafter completing feasibility studies

Member of Parliament for Kanyikareengage constituents over problems

KAMNAF Chairperson, John Nkhata addressing MPs during dinner interaction

Initial drilling works at Kanyika Niobium Mine

Taking his turn, another Kanyika mining community member stressing a point

GO THEE WELLKAULUNGU SIMWAKA

Mining & Trade Review joins family, friends andcolleagues in mourning a human rights activist,Kaulungu Simwaka, who passed away last month at hishome village in Chitipa District. Mr. Simwaka worked for Citizens for Justice Network, anNGO that advocates for good governance and was also aNational Coordinator for Publish What You Pay (PWYP)Malawi, a coalition of civil society organisations thatadvocates for an open and accountable extractive sector.We commiserate with the bereaved family and ask forGod’s guidance...We’ll miss your wise input.

PROJECT FOCUS April 20178

In 2006, people of Mayera, an area that hosts alimestone deposit and located at a distance of 50kmfrom Mangochi Boma, were surprised to see foreignpeople with their tools moving around, showing

stones to each other, drilling holes in their gardens andnearby bushes and writing in their note books things thecommunity members could not know. When traditionalleaders of Mayera area built courage and asked who thepeople were, the foreign people’s response was simple,“we are from the government”. As time went by, the people could not imagine that the

drilling and notes taken would bring something new totheir area. So early 2009, they could not believe that afactory was being constructed in Njereza to mine thelimestones from Mayera. When the chiefs soughtclarifications, they were told that Cement ProductsLimited (CPL) has been given a licence by the governmentto mine lime stones in their area for cement production.Upon hearing the word “government” the people were

hopeless and conceded defeat without asking furtherquestions because of fear. Four years later, Qadria Muslim Association of Malawi

(QMAM) went to the area with a project named TonseTipindule: promoting increased inclusion, accountabilityand responsiveness in Malawi’s Mining Sector funded byTilitonse Fund and coordinated by Norwegian Church Aid(NCA). The project’s goal is to contribute towards improvedsocial inclusion, accountability and responsiveness amongduty bearers in Malawi’s mining sector. Through the interventions under output two of the

project which aims at improving engagement between CSOs,citizens and government (including mining investors), theQMAM project team has been implementing a number ofinterventions in the area which enlightened the people oftheir rights, roles and responsibilities on the miningactivities happening in their area. Further the communityhad an interface with the company where both partiesraised their concerns and wishes. This resulted in the

recognition of the community by the company and hiringmembers of the community, instead of a foreign contractor,to provide sands and stone to the company as part of a goodgesture from the CPL Company towards the people ofMayera area. The Mayera community got organized intogroups and engaged in sand and stones collections. One ofthe Chiefs, GVH Soliati was at his peak helping thecommunity action group (CAG) responsible for miningactivities in engaging the company to an extent that hestarted stealing from his own subjects by charging a fee ofK1, 200.00 for every trip of sands and stones for which thecompany pays K10, 000.00 per a tipper trip of seven tones.On 11th March 2016, QMAM project team conducted

a sensitization meeting on Corporate Social Responsibility(CSR) at Mayera Primary School Ground where thecommunity was informed that every development shouldaddress community needs and that they should stand andembrace a hard working spirit in any developmentactivities that comes to the community due to the miningactivity. Further QMAM edged the people of Mayera toengage the CPL Company whenever they feel things are

not going on well. This sparked interest to the communitywho later asked their traditional leader why he wascharging them a fee and for what purposes. The chiefimplicated the company and the community went to meetthe CPL management who expressed ignorance on thematter saying that the workers deserve to get their fullpayment unless the community agrees that such an amountshould serve a particular purpose to the community andupon agreement between themselves. GVH Soliati on his part could not explain why he was

charging the amount and it was agreed that the chief shouldnot have a hand in anything that the company offers to thecommunity and that all payments regarding sands andstones selling should be done at CPL accounts office toavoid such fraud. Currently, GVH Soliati has been reducedto size and left toothless

CSR meeting helps communities uproot corruption by GVH in Mangochi by Biswas Ismael, QMAM Programmes Officer

Mangochi Mayera CAG members and traditional leaders being drilled on CSR negotiating skills

QMAM Programmes Officer interacts with CPL official during one of visits to discuss CSR issues

GVH Soliati speaking during 2014 National Mining Indaba

April 2017 PROJECT FOCUS 9

Over 800 SMS were sent from all overthe country to the program. “The debate achieved holistic engagement with the

general public even from outside the project catchmentareas. Malawians demonstrated their concerns on delays inpassing the Mines and Minerals Bill,” says Mapemba.Besides the national level achievements, he says the

project has ensured that there is comprehensive stakeholderengagement at community and district level which has been

achieved through capacity building of community actiongroups (CAGs) and community leaders to engage withinvestors, and district officials.He explains that through the project, members of local

CAGs have been trained on how to engage investors andgovernment.“The project documents emerging issues from the

catchment areas and plans with the community on how bestto engage duty bearers. Through this arrangement, thecommunities have registered success in a number of areasin negotiating with investors for a number issues includingfair resettlement compensation, corporate socialresponsibility benefits and inclusiveness in decisionmaking on mining projects,” he says.Among other interventions to promote stakeholder

engagement, Tonse Tipindule Project has sponsored MiningIndabas at both national and district level that have attractedstakeholders from government, civil society andcommunities from mining areas. In implementing the project, NCA says it stresses the

importance of engaging more relevant stakeholders such astraditional leaders, councillors and more importantlyfaith-based leaders in advocacy issues with the aim ofwidening reach-out on minerals industry governance issues.NCA Country Director Stain Villumstad, who proposes

a dialogue-oriented other than militant approach withstakeholders including investors and government, saysthere is need to utilise the wider-reach that faith-basedorganisations (FBOs) and local government structures havein society to advance pertinent issues in mining governanceand sensitise the populace about mining issues.“The reach of faith-based leaders cuts across these

stakeholders. People with authority belong to one faith orthe other, which gives faith leaders a huge, ideal and

strategic podium to reach across the spectrum,” he says.Secretary General (SG) for Episcopal Conference of

Malawi (ECM) Father Henry Saindi shares Vullumstad’sstand saying it is a calling for every faith based organisationto contribute something good to the nation.

He explains that faith leaders remain a beacon of lightthat provides guidance towards achieving anything goodfor the nation and incorporating them in the project that willensure that proceeds from natural resources trickle down tothe marginalized masses is an appropriate idea.“This is a good course that will bring development and

make people happy, which is quite commendable as thelight of God will illuminate the path we are taking on thisjourney and guide us to success,” says Fr. Saindi.Secretary General for QMAM, Osman Karim comments

that there is need for Malawians including political leadersto support the Tonse Tipindule Project by upholding thespirit of responsibility and good citizenship to ensure abetter and well developed Malawi is realised through soundand fair utilisation of natural resources.He says pursuance of personal interest and greed is what

has brought about the negativity that the mining sector isviewed with hence there is a need to work together andbring positive light to the sector.“It is immoral that only one person or a selected few

should benefit from these resources that belong to the entirenation. Each one of us needs to take responsibility and worktowards making mining a vibrant sector, with which, wecan economically transform our country,” he says.The theme for phase 2 of Tonse Tipindule, which took

up the recommendations from Phase 1, is PromotingIncreased Inclusion, Accountability, and Responsiveness inMalawi's Mining Sector (Read Pages 5 to 8 for case studies depicting individualsuccess stories for the project)

...from page 4

Balaka Community attending a Mining Indaba

Panellists- traditional leaders, govt official and mining sector experts during live discussion A Member of Parliament interacts with mining communities during dinner

L-R: Fr. Saindi, ECM SG Livingstonia Synod SG Rev. Kapombe QMAM SG Karim

OPINION & ANALYSIS April 201710

AbstractPlatinum metals exploration in Malawi has been associated with mafic to ultramafic rocks,sometimes associated with arnothosites. These rocks have been metamorphosed and it ispossible that lateroregenic events triggered magmatisation of buried intrusive bodies.These are associated with irumide orogeny. This paper tries to documents target areas forexploration of platinum minerals including nickel, copper and chrome.

IntroductionThe platinum group metals are characterised by their denseness, hardness, high reflectivityand resistance to tarnishing. They have electrical conductivity and conduct heat. Theypromote chemical reactions. They have three main occurrence as follows:1. Platinum-bearing nickel-copper, copper, or copper-cobalt sulphides that are related genetically to basic or ultrabasic rocks. This group does not show magmatic separation or segregation.

2. Platinum-bearing nickel-copper ores that are magmatically disseminated orconcentrated in gabbroic and ultrabasic rocks. Pyroxenite and anorthosite host rocksare commonly associated with norite and all of these may have the outlines of dikes,sills, pipes, lenses, or schlieren.

3. Native alloys of the platinum metals that are magmatically disseminated in peridotitesand if concentrated, they are commonly intergrown with chromite. Most of these deposits are in dunites may partly alter to serpentinite.

4. Placer deposits of native platinum metals consist mainly of two principal alloys knownas "platinum" and "osmiridium." Osmiridium consists dominantly of iridium and osmium and hosts minor metals of ruthenium, rhodium, and platinum.

5. Platinum in bedrock lodes may have gold, silver and some base metals which act ascations in combination with elements such as arsenic, antimony, bismuth,sulphur, tellurium and oxygen.

Platinum in MalawiPlatinum and associated minerals in Malawi have showings in mafic and ultramafic rocks.A series of pyroxenitic and gabbroic rocks with serpentenite alterations have been foundto contain Ni – Cr – Cu - Pt sulphide mineralisation. There is high potential to discovereconomic deposits in Karonga –Chitipa area, Kasungu - Mchinji – Lilongwe plain, Ntcheu– Mwanza area and Blantyre-Chikwawa (Shire Highlands) area. Table 1 documents whatwas obtained in previous exploration works while Figure one shows the localities of theseminerals.

Table 1: Platinum exploration target

Figure 1: Platinum - Ni - Cr - Cu - Sulphide Occurrences in Malawi

References1. Bloomfield, K. and Garson, M.S. 1965. The geology of the KirkRange-Lisungwe Valley area. Bull.Geol. Surv. Malawi, 17.2. Malunga G. W. P. 1997. Min-eral Potential of Malawi, Un-published Report.3. Paterson, Grant and WatsonLtd. 187. Interpretation of Airbonegeophysical survey results. UNDPProject Mlw/80/030.4. Peters, E. R. 1969. The geologyof the Kasungu area. Bull. Geol.Surv. Malawi, 25.5. Thatcher, E. C. and Wilderspin,K. E. 1968. The geology of theMchinji-Upper Bua area. Bull.Geol. Surv. Malawi, 24.

by Grain Wyson Phillip Malunga FIMMMMining and Environmental Management Expert

LOCATION GEOLOGY AND GEOCHEMICAL ASCCIATION

KIRK RANGE

• ChimwadzuluHill Serpentenized peridotite and amphibolite with(PGE)-Ni-Cr association. Lisungwe Plc prospect-ing showed 420 ppb Pd and 104 ppb Pt

• Chimbalanga Ultrabasic Body Buried intrusive (<200m). Targeting (PGE)-Ni-Cr.Within Chongwe schist belt

• Lisungwe Fault Zone ultrabasicbodies

Anomalous values of 2000 ppm Ni and up to 500ppm Cu were recorded by Lisungwe Plc

• Nkalazi River Intrusive Serpentenized peridotite with metagabbro andamphibolite

• Mudi River Ultramafic Sill PGM-Cu-Ni-Cr association.

• Mpemba Hill Pyroxenite and gabbro with PGM-Cu-Ni-Cr association. Historic figures show 2.9% Ni and2.7 % Platinum metals.

CHIKWAWA

• Mwanza Ultrabasic Intrusive Aa buried circular structure.

• Ngala Hill Metapyroxenite and amphibolite with (PGE?)-Au-Cu-Ni association.In 1999, Phelps Dodgeprospecting yielded 1.41 g/t Pt+Pd+Au. In 2000,Placer Dome confirmed further anomalies of 3 g/tPGE+Au.

Platinum in MalawiLILONGWE – KASUNGU• Bua Metagabros: Kamphata,

Lisandwa, Chitipa hill.Anomalous values averaging 2000 ppm Ni havebeen obtained.

• Kabudula These metagabbro are mafic-ultramafic rocks.

• Chimimbe Ultramafic Body (PGE)-Cu-Ni-Cr association portrayed 2000 -4000 ppm.

MZIMBA

• Mchintha Hills These intrusives have potential for discovery ofPGM-Cu-Ni-Cr minerals.

• Mpimbi Hills

• Perekezi Intrusive

We would like to correct the inadvertent mistake which occurred on this columntitled THE VOLATILITY OF COMMODITY PRICES on one of the tablessub-titled ‘Energy Minerals Price History Data’ which appeared in our FebruaryEdition. We erroneously repeated the figures that appeared in the column’s firsttable sub-titled ‘Precious Metals Historical Price Data’. We sincerely apologise forthe oversight. The figures in should have appeared as below:

MATTER OF FACT

Themal Coal (US$/t) 98.70 85.53 72.54 60.38 63.03

Uranium (US$/lb) 48.86 38.66 33.44 36.81 21.45

2012 2013 2014 2015 2016

Coking Coal (US$/t) 252.10 147.28 116.6 90.0 120.59

April 2017 ADVERTISEMENT 11

Issue No. 48 April 2017

MINING & BUSINESS NEWS THAT MATTER

Competition and Fair Trade Commission (CFTC)has urged the public to be vigilant and report‘digital age’ unfair trading practices that someunscrupulous traders are using to defraud

consumers of their hard-earned money.The call was made by CFTC Executive Director Charlotte

Wezi Malonda during this year’s World Consumer RightsDay commemoration which was held in Lilongwe underthe theme “Consumer Rights in a Digital Age”.Malonda said the theme was motivated after the

consumer rights movement noticed rapid growth of theinternet, mobile phones, computers, high-tech televisionsand other digital technologies which has createdopportunities but also challenges for millions ofconsumers in the country.“This digital age; also known as the “dot com

generation”, has seen an increasing number of peopleembracing technological advance which is re-definingtheir lives but also has exposed consumers to violationsthat occur during transactions involving the digitaltechnologies,” she said. Malonda said the theme, “Consumer Rights in a

Digital Age”, is very relevant to Malawi since the countryhas taken a fair share in consumption of digital productsand services; and consumers have experienced unfairtrading emanating from a number of challenges. She said some of these challenges include the offering

of substandard digital gadgets, weak television signals,slow internet connections and information asymmetrybetween service providers and consumers.“So as we commemorate this day, people should reflect

on the theme with special consideration being focused onthe various types of consumer violations that occur duringtransactions involving the digital technologies,” she said.Malonda said the Commission endeavours to promote

consumer protection through prevention of unfair tradingpractices which are prohibited under the Competition andFair Trading Act and the Consumer Protection Act.She said some of the common violations that have been

so far reported to, and addressed by the Commission relateto unsatisfactory but exorbitant telecommunicationsservices, supply of defective, or counterfeits or substandardelectronic gadgets ; misleading advert is ing andmisrepresentation of products as well as supply ofcounterfeit software and Apps.She also cited fake adverts, misleading advertising and

misrepresentation of products and financial scams that theconsumer is duped with through Online Marketing, as wellas "fake news” that filters unabated, particularly throughsocial media; unethical and immoral adverts and the airingof unethical and potentially abusive material through

Online Media and communication.The speech also branded the issue of pre-paid cards

which do not activate after entering on meters/gadgets,supplying of cards activation codes which do not work, orcards that takes days to be activated as violation ofconsumers rights that needs to be reported.Among major culprits in digital age unfair trading

practices and consumer rights violations are reputablebanks and mobile phone network services providers.The Commission narrated that ‘innovative digital

banking services’, though meant to make bankingtransactions easier and less hectic, its failures, exploitativecharges and additional charges on consumers when usingpoint of sale (POS) machines, as well as unwarranteddeductions from clients’ bank accounts allegedly as servicecharges, are undoing all the advantages of the initiative. On the part of the telecommunications, Malonda said

the Commission has been inundated with queries such asclient buys airtime to make calls or internet, but the airtimegets eaten up without necessarily accessing the service andclient purchases an internet bundle but it expires due toconnectivity problems.She noted that in other cases, a service provider

advertises that if a client purchases a phone, there will bestart-up airtime and internet bundle; however, these are notgiven; a service provider runs a promotion under which araffle draw will be conducted and prizes will be given out,however, this is not undertaken, and hotels billing clients fornon-connected calls just because the phone was ringing.“And the other common consumer rights violation is

unwarranted and exploitative charges for mobile moneyservices,” she said.On restrictive business practices, Malonda said the

Commission has tackled issues of perceived collusivepricing, perceived customer/market allocations, exploitativepricing, let alone, abuse of market dominance.“All this is violation of consumer rights that has to be

addressed. The public need to report this to us, and we canassure you that we will enforce the law without fear orfavour,” said Malonda.On his part, Secretary for Industry, Trade and Tourism,

Cliff Chiunda, described the World Consumer Rights Dayas important, as it conforms to one of the key governmentpolicies, the Competition Policy, being implemented by theMinistry with government’s desire to safeguard consumersfrom unfair trading practices perpetuated by commercialenterprises. He said as a Ministry they are proud that their agency,

the CFTC, which implements the Competition and FairTrading Act and enforces the Consumer Protection Act, hasshown passion in carrying out its mandate without fear orfavour.The secretary said within the short period of time that

the Commission has been in existence it has intervenedon the market in a number of ways for the benefit ofconsumers, among them, helping consumers recover overMK20 million for the past three and half years.“This is great news and it is the hope of my Ministry

that consumers will continue making good use of theCommission by reporting any violations of their rights,including on digital products,” he said.He urged consumers to harness interest and get a better

understanding of how to deal with emerging consumerprotection challenges brought by technological advancements,because digital is fast becoming a way of life, hence one ofthe widest markets in modern times that can be abused.Chiunda also took the opportunity to urge traders or

service providers to desist from offering substandard ordefective digital products to consumers to enable themenjoy value for money.“If you offer substandard products, it will not only

negate consumer welfare and perpetuate poverty but it willalso wash down the trust our local and internationalbusiness partners and clientele have on us. In return, oureconomy will remain nascent forever and we cannotcompete favourably regionally or globally,” Chiunda said.He then assured that the Ministry of Industry, Trade and

Tourism, will ensure that relevant policies, strategies,regulations and guidelines regarding consumer protectionare efficiently and effectively implemented to guaranteeconsumer welfare. According to the Reserve Bank reports, over 2.7million

people in Malawi use digital products such as electronicpayments methods which include ATM transactions,mobile network operators, point of sale (POS) facilities andinternet banking. In 2013, electronic payment transactionsaccounted for 25% of total payments made by both thepublic and private sector

By Chiku Jere

Published by Mining Review Publications P.O. Box 206 Lilongwe, Tel: +265 (0) 111 744 071. Cell: +265 (0) 888 356 536, (0) 993 252 656Email: marcsmediamw@gmail.com

CFTC urges public to report ‘digital age’ consumer violationspromises to enforce law without fear or favour

Malonda: We’ll enforce the law without fear or favour