ISSUE NO. 65 September 2018 Mining & Business News that Matters Order Price: - MK1000

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Mangochi communityseeks voice on CPLCSR programme

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Illegal gold mining activities by artisanal and small scale miners(ASMs) continue spreading to new areas unabated despitegovernment’s repeated warnings to use the country’s lawenforcement agencies to crack down on the miners and goldbuyers camping at the sites, who include immigrants from

countries such as Rwanda, Mozambique, Tanzania and Botswana.Mining & Trade Review found out that in addition to Nanthenje

River Banks in Traditional Authority (T/A) Mazengera’s area, in

Lilongwe the miners have extended their activities to Lundu Village inT/AChumutu’s area where unlike other areas, theASMs are extractingthe gold-rich soil from a hilly area to then ferry it using hired trucks andpails to the near-by Chamwavi River to wash out the gold strains whichare sold to the dealers, who are mainly foreigners who smuggle the re-source to neighbouring countries.

In an interview, the local miners said the activity has improved theirlivelihoods as they are now able to earn a better living as opposed toonly depending on rain-fed agriculture.

Nonetheless, the miners asked the government to regulate theiractivities so that they are able to charge better prices and on theother hand the government is in a position to earn revenue fromthe activities in form of taxes. ...cont. on pages 2

By Chiku Jere & Gloria Mbwana

Gold miningfrenzy

Artisanal & small-scale miners discover more deposits

Locals lambast govt. for entertaining foreign buyers

Govt. banking on new policy to create sanity

ADVERTISEMENT / NEWS & ANALYSIS September 20182

“We are illegal miners because government is failing toorganize us to legalize this. We are in support of the idea to regulate the tradeso that it is beneficial to the country,” said Julias Doyisi, a miner found at Lundusite who migrated from his original home Kamoto Village, T/A Chimaliro inThyolo in search of gold.

He expressed concern that due to government’s failure to train the localsin the trade, most of the buyers of the stones are foreigners who are duping localminers by buying the commodity from them at very low prices.

“I have been to almost all the areas where gold panning activities are takingplace including Ntcheu-Senzani, Mwanza, Lisungwi, Mangochi-Makanjira,Salima and here at Lundu and the fact is that most of the buyers are foreignersbecause Malawians lack the technical and financial capacity. It is high time thegovernment intervened in this issue because we are losing a lot of revenue asMalawians.”

“It is really baffling that our government that we entrusted to protect theinterests of the citizenry, is fast asleep while these foreigners keep stealing theprecious resources for mother Malawi. In countries where these people comefrom, foreigners cannot be allowed to roam freely in villages looking for gold,”said Doyisi who claimed to have been chased from Mozambique when hemigrated to that country in search of gold as the law there has restrictions onthe mining of reserved minerals.

He said what is more scaring for the local miners at the mining sites is the factthat most of the foreigners with whom the few local buyers are scrambling forthe minerals come from countries where there have been bloody strife becauseof minerals.

A couple of months ago, the Ministry of Natural Resources, Energy andMining repeatedly published a stop order for illegal gold mining activitiestaking place in the country in the local press threatening individuals engagedin the activities to stop the ‘malpractice’ or face eviction and prosecutionaccording to the laws of Malawi.

But the small-scale miners, who are still continuing with the activities,reasoned that it is better for the government to start licensing and taxing theiractivities other than using force to stop the trade as that would imply deprivingthem of their source of income.

“The government will act unfairly to us if it uses force to kick us outbecause we are benefiting from the trade. For instance, I am able to providebasic needs for my family using proceeds from these mining activities, andI even bought two motorcycles,” said Doyisi.

Charles Mzunga from Saenda Village T/AMakwangwala in Ntcheu, who wasalso found carrying out gold panning at the Lundu site, said as ASMs, they findit unfortunate that the government waits for them to discover mineral depositswhen they, government technocrats, are the ones who have the equipment andtechnical know-how to conduct exploration and issue mining licences.

“The so-called authorities from Mines Department wait for us to discoverthese mineral deposits on our own, then they move in to start to tell us what todo. I thought they are the ones who are supposed to identify the minerals and giveus the local miners licenses to mine other than letting these foreigners steal theminerals in broad daylight” Mzunga said.

Another miner, Esau Ng’ona from Chivundura Village in the same area,hailed the gold mining activities for enabling impoverished miners to settle loansfrom village banks and buy fertilizer for their gardens.

Besides the gold diggers, the illegal mining sites have attracted vendors whohave set up market centres at the sites selling various merchandise includingfood staffs, clothes and electronic devices.

A scanty head count by Mining & Trade Review at Lundu mining siterevealed that there are over 5000 people doing various businesses from goldmining, buying, selling of merchandise, food and locally brewed alcohol.

There are also solar powered barbershops and phone battery chargingmake-shift parlors erected at the site, effectively turning the spot into a thrivingeconomic activity hub where money is changing hands at a fast rate.

However, a myriad of social and environmental problems have surfaced at theillegal gold mining centres including fights due to jealousy among the minersand vendors, alcoholism, danger of diseases arising from poor sanitation andsexually transmitted infections.

From page 1

...cont. on pages 3

Mzunga digging in his gold mine

September 2018 NEWS & ANALYSIS 3

“We have ventured into this due to povertybut we are aware of the environmental, health and safetydangers. The water we are using is not safe, alcoholism isalso another problem as beer is sold here and the drunkardssleep around with girls within the vicinity,” said a foodvendor at Lundu, Esther Chinzimu Banda.

Meanwhile, more gold mining hotspots continue to beidentified and while at Lundu Village, Mining & TradeReview got wind of reports that some miners were leavingfor other sites in Dedza, Nkhoma, Namitete and Chimbalangain Lilongwe.

In a related development, Cabinet has approved theArtisanal and Small Scale Mining (ASM) Policy, whichaims at regulating the sub-sector.

Chief Mining Engineer in the Ministry, CassiusChiwambo, told Mining & Trade Review that the newpolicy sets out the benefits that Malawians will get throughformalization of the ASM activities.

He said, in so doing, the policy will create an environmentwhereASMs will be operating with great technical supportfrom government officials through enforcement ofapplicable laws.

Chiwambo said: “The policy will help the ASMs to getaccess to both local and international markets. As such,there will not be a window for illegal buyers who will beforced to move out of the country.”

“As a country, the policy will help Malawi generaterevenue which will assist in addressing socio-economicneeds of Malawians including those residing in areas wherethere are no mining activities of any kind.”

However, during the Mangochi District Mining Indabaorganized by Natural Resources Justice Network (NRJN)which brought together officials from Mines Department,chiefs, church leaders as well as community members,tempers flared when stakeholders told Director for MinesDepartment in the Ministry of Natural Resources, Energyand Mining Jalf Salima that they were dissatisfied with theway authorities were handling the issue of illegal mining.

Making a presentation, Salima told the gathering thathis department took the concerns of the communities overthe illegal mining happening in different areas includingNamizimu Forest and Makanjira to relevant authoritieswhich resulted in government issuing a stop order urgingillegal miners to willingly vacate the sites by July 21, 2018or face full force of the law.

“As I speak, everything is in the hands of our securityagents who will move in to carry out the eviction anytimeas you know with issues to do security, you do not lay yourplans bare but, surely, the miners will be evicted,” saidSalima.

However, this did not go down well with members ofthe audience who questioned why government was stilldillydallying in enforcing the order though the deadlinealready passed.

Shiekh Abdullah Kaposa took Salima to task sayingtime for consultation was over because the communitieshad given government an ultimatum to have the illegalminers evicted by July which has not been done.

“We do not have time for your presentations or furthermeetings, all we want is to see the illegal miners out of ourarea. We are giving you two to three weeks to do your jobor else we will mobilize communities and do it ourselves,”said Kaposa.

Kaposa’s sentiments got full backing from TraditionalAuthorities Makanjira as well as Chowe and other GroupVillage Heads whose areas are affected by the illegalmining activity.

On his part, NRJN Board Chairperson Kossam Munthalisaid what is happening across the country was lawlessnessand injustice to communities as apart from losing out fromthe benefits they could have gained if the activity was legal,they also face many dangers that these chaotic mining

activities are exposing them to.“As a country of laws we cannot continue paying a

blind eye to such mishaps. Those entrusted with authorityshould do their job to safeguard the interests of Malawians,”he said

Cartoon

BByy JJaammeess KKaazzeemmbbee

From page 3

Doyisi in the thinck of things Vendors displaying their merchandise Incessant partying: Villagers on a beer drinking spree on site

Salima: We issued an order Kaposa: Just do your job

ADVERTISEMENT September 20184

September 2018 OPINION/NEWS & ANALYSIS 5

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EEDDIITTOORRIIAALL

State President Arthur Peter Mutharika excitedplayers in the minerals sector when he promised thatthe amended Mines and Minerals Bill would bedebated and passed in the last sitting of parliament

which happened to be the budget sitting in May this year.Mutharika said in his State of the Nation Address:

“Mr. Speaker, Sir, in recognition of the huge potential the mining sector has on thecountry’s economic growth and development, Government has been implementinga number of initiatives aimed at increasing investments in the sector.”

“Some of the initiatives include: capacity building in mining contractnegotiation and in development of modern mining agreements. We want ensurethat we enter into mining agreements that are balanced, equitable, fair andbeneficial to the people. We have also adopted a regionally competitive MiningFiscal Regime. This will ensure that investors will have confidence in the sector.Increased investment in mining will result in job creation and more revenue forsocial and economic growth.”

“Mr. Speaker, Sir, we are reviewing the Mines and Minerals Act of 1981 andthe Petroleum Act of 1983. We want to improve the legal environment of themining industry to enhance development of the sector and increase its benefits tothe people. The Bills are expected to be tabled in this sitting of Parliament.”

However, it was surprising that just like the Revised Petroleum Act, theAmended Mines and Minerals Bill, prepared by an international consultant JamesOtto in January 2015 with input from various stakeholders including governmentofficials, traditional leaders, faith organisations, civil society organisations, mininginvestors, small-scale miners and members of the community in mining areas, wasnowhere to be seen until the House of Assembly adjourned.

We do not have the facts on whether it was an oversight on the part of thegovernment officials not to bring the Bill to parliament after such a promise bythe country’s Head of State or there was a kind of emergency that prompted thegovernment to decide to exclude the Bill from the order paper at the eleventh hourbut the fact is that the government continues to make unnecessary delays to enactthe new mines law.

This is certainly retarding development in the sector, which Mutharika asquoted above, agrees has overwhelming potential to turn around the economicfortunes of this impoverished country.

Our interviews with a number of investors pursuing large-scale mineralprospecting projects across the country have revealed that they are waiting for thenew law to make investment decisions. Therefore, the question that comes to mindis that in continuing to sit on the new law, is the government serious in attractinginvestment into the mining sector?

Besides investment issues, the other facet of the new law is the provision formining companies to sign community development agreements. As reported in thisedition, studies by a civil society group Norwegian Church Aid has revealed thatcompanies are implementing disorganized corporate social responsibility projectsthat do not meet the needs of communities in mining areas because of lack ofcommunity development agreements.

This certainly calls for the enacting of the new law as soon as possible otherwisethese communities that are at the receiving end of the effects of mining activities willcontinue to suffer in the watch of the government.

Artisanal and small scale miners (ASMs) are also going through problemsdue to lack of strong laws and regulations, and poor monitoring and enforcementof existing laws by the government.

For instance, peasant farmers have taken advantage of the lawlessness to leaseout their land for gold panning activities to unlicensed miners mainly foreigners,who are putting the locals out of the market.

All in all, we feel the government is aware that all these problems have emergedbecause of a weak legislative environment and weak enforcement of laws and justas the President said in SONA, the way to go is to pass the new law, and scale upmonitoring and enforcement.

Therefore, we urge the government to promptly bring the new Mines and MineralsBill to parliament or risk shaming the President who made the promise

BY MARCEL CHIMWALA, PUBLISHING EDITOR

TTaabbllee MMiinneess aanndd MMiinneerraallss BBiilllloorr rriisskk sshhaammiinngg tthhee PPrreessiiddeenntt

KKaassiikkiizzii CCooaall MMiinneess LLiimmiitteedd has partnered with ZAGAF Cement Sales to mine and sell steamcoal from Vungu Mine in Mwankenja Coalfield, Karonga District. The mine is expected toproduce 10,000 tonnes per month to supply coal for agroprocessing and cement industry.Export opportunities and thermal power generation offer increase in production.

Our coal is of high quality which does not require it to be washed. It has low sulphur and highcalorific value as shown below:

We can also meet customer specifications.

Calorific Value 6260 Kcal/Kg

Ash Content 15 %

Volatile Matter 28 %

Total Moisture 4%

Sulphur 0.23 %

Fixed Carbon 52.8%

Cobbles Run of mine

Nuts/Grains 25 – 50 mm

Peas 0 – 25 mm

Duff 0 – 9mm

We are located about 22 Km from Karonga. Turn to the left on Chitipa Road at MpataSecondary School and travel about 12 km to the mine at Vungu.

YYOOUURR MMOOSSTT RREELLIIAABBLLEE SSUUPPPPLLIIEERR OOFF SSTTEEAAMM CCOOAALL

Post Box No - 444, Karonga, Malawi. kasikizicoal@gmail.com

Cell: +265 997670460/0991019196

NEWS & ANALYSIS September 20186

The article is sponsored by Norwegian Church Aid

The Norwegian Church Aid (NCA) has stressedthe need for increased engagement betweenstakeholders in the extractives sector includingthe government, investors, civil society groupsand communities in resource rich areas to

ensure that the impoverished communities are kept abreastof mining projects taking place in their areas.

NCA Malawi Country Director Havard Hovdhaugenexplains in an exclusive interview with Mining & TradeReview that studies conducted by his organisation haveproved that in Malawi there is an information gap betweenstakeholders and communities in mining areas due to lackof dialogue and effective communication.

“We are, therefore, implementing a resource governanceprogramme to bridge this gap because for a mining projectto benefit the rural communities, members of the communityhave to be sensitized and empowered to dialogue with thegovernment and investors and demand a fair share ofbenefits from the project,” says Hovdhaugen.

NCA has employed a strategy called Theatre forDevelopment (TFD), which Hovdhaugen describes as anexcellent tool to create space for dialogue between theaffected communities and other stakeholders.

The organisation engages a local civil society grouping,Institute for Community Mobilisation (ICOM), to executeTFD in specific mining areas and has lately been toMalingunde Flake Graphite Project in Lilongwe, andNjereza Limestone Mining Project and Makanjira goldpanning area in Mangochi.

Under the methodology, ICOM initially conductsresearch to establish root causes for various problems andalso background information on the areas.

ICOM later facilitates discussions among duty bearersin this case government officials, CSOs, investors andcommunity members and also facilitate development

of action plans. The action plans come from investors, community

members and duty bearers on how they can solve criticalproblems affecting not only the community but alsoinvestors and government as they carry out their duties.

Then a theatrical performance follows, unveils theresearch findings and verifies them with the community.

The performance also facilitates development of actionplans and resolution of issues between the communitymembers, miners and duty bearers.

“This strategy is effectively working here in Malawiwhere dialogue has been difficult because of poorcommunication strategies. For example, in projects suchas Malingunde, communities say they were better sensitizedby our TFD programme as officials from government and

mining companies previously tasked with sensitizingcommunities used some technical language which theyfailed to understand ,”Hovdhaugen says.

He also advises the Malawi government to uphold goodgovernance in the extractive industry saying if wellmanaged, the sector is an effective tool to lift Malawiansincluding impoverished rural communities out of poverty.

Hovdhaugen says, among other things, Malawi needsto update the outdated legal framework governing theminerals sector in a way that communities affected bymining are fairly compensated.

“The law should also take care of environmentalconsequences, ensure that revenue created benefit Malawiansincluding communities in mining areas and promotetransparency and accountability,” he says

NNCCAA ffaacciilliittaatteess ssttaakkeehhoollddeerr eenngagement in minerals sector• Theatre for development proving effective in bridging information gap

• Communities must benefit from mining projects - Hovdhaugen

By Marcel Chimwala

Stakeholders pose for a photo at Makanjira Saiti Village after Theatre for Development

Hovdhaugen, NCA Malawi Country Director stressing a point during interview with Mining & Trade Review

September 2018 NEWS & ANALYSIS 7

The article is sponsored by Norwegian Church Aid

He says though communities benefit from miningventures through employment opportunities, there is also aneed for companies to sign development agreements withcommunities that set aside a percentage of the proceedsfrom mining ventures for the communities, which are therightful owners of mineral resources.

He says the government also needs to enforce the newlaw noting that the main challenge for Malawi is notabsence of good laws but rather enforcement andimplementation.

Hovdhaugen promises to maintain a good working

relationship between NCA as a civilsociety grouping, the government andmining investors saying Malawi willnot develop its minerals sector ifstakeholders embrace a confrontationalapproach in dealing with issues.

“We would also like to urge thegovernment and mining companies toinvite communities for dialogue,” hesays.

Following the success of TFDin facilitating dialogue betweenstakeholders for the MalingundeGraphite Project in Lilongwe, CementProducts’ Njereza limestone mine, and

gold panning areas in Mangochi, NCA has planned to takeTFD to other mining areas where there are similarproblems of lack of dialogue and effective communicationbetween stakeholders and affected communities.

He explains that the approach will help eliminate fearamong the affected communities as was the case withMalingunde.

“The fear created in Malingunde was not only relatedto the issue of relocation, it was also about the lack ofinformation in general. If relocated, to where? Ifcompensated, how much? If mining will take place what

will happen to the communities’ sacred places, graveyards?”says Hovdhaugen.

ASX-listed Sovereign Metals is conducting a feasibilitystudy for the Malingunde flake graphite mining project whichis expected to yield approximately 44,000 tonnes of graphiteconcentrate per annum over an initial mine life o 14 years.

The company is also conducting environmental andsocial impact studies which include consultations with localstakeholders on the way-forward for the project.

Sovereign aims to complete all studies for the projecttowards the end of 2018 to decide whether the mine will bedeveloped or not in 2019.

If a decision will be made to proceed to mining stage, aresettlement exercise will be implemented. Sovereign has,therefore, advised the communities in the project area tolive their normal life until the relocation decision is made.

At Njereza in Mangochi, Cement Products, which is alocal firm mining limestone at the site, has launched aclinker plant while in Mangochi Makanjira, illegal minersare extracting gold in Unga and other rivers, an exercisethat has led to environmental damage.

Malawi is currently governing its minerals sector usingthe Mines and Minerals Act (2001) and alongside othercivil society groups, NCA has been on the forefrontpushing the government to enact the new Mines andMinerals Law.

The Ministry of Natural Resources, Energyand Mining finalized consultations on the newLaw a couple of years ago but despite repeatedpromises to expedite the enactment of the newlaw, the government is yet to bring the Bill toparliament.

The Revised Mines and Minerals Law, amongother things, provides for mining companies tosign community development agreements toenable communities in mining areas benefit fromproceeds of mining projects.

The new Law vests ownership of the country’sresources on the State on behalf of the country’scitizens while the 1981 Act, which was formulatedduring the single party dictatorial era vests theresources on the Life Presidency on behalf of thepeople of Malawi.

Though it does not have a rich mining history,Malawi has operational mines for coal, gemstonesincluding the most precious ruby and sapphire,limestone and quarry.

The Kayelekera Uranium Mine, which is so farthe country’s largest mining investment, remainson care and maintenance due to prevailinglow uranium prices on the world market butexploration by government and private companieshas unveiled sizeable quantities of variousminerals including rare earths, graphite, bauxiteand heavy mineral sands

NCA facilitates stakeholder ennggaaggeemmeenntt iinn mmiinneerraallss sseeccttoorr

Representatives for mining communities across the country push for quick enactment of revised minerals law

Theatre for Development drama group members sensitizing members of Mangochi communities

Map showing Malawi’s mineral potential

NEWS & ANALYSIS September 20188

The article is sponsored by Norwegian Church Aid

Astudy commissioned by the NorwegianChurch Aid (NCA) has revealed that anumber of environmental and socialproblems have emerged in the area ofGroup Village Headman Saiti in Makanjira

area in Mangochi as a result of illegal gold miningactivities taking place in the area.

The study report says one of the worries of thecommunity is that since gold mining started in 2015 inUnga River and surrounding area, there are tunnels andbig holes that have been created posing a threat to lives ofpeople.

“As the holes or tunnels are left without any properenvironmental protective measures, there is a danger ofwater percolating during heavy rains which may end inlandslides which may endanger lives of innocent members

of the community,” the report reads.It says the other environmental problem identified in the

study is that of river siltation saying people openlyexplained that the Unga River which was previouslydepended on for irrigation farming is drying up and thesmall quantity of water remaining is contaminated.

“This, therefore, is disturbing the farming system forthose who relied on irrigation farming, and the value of theriver in general is decreasing,” it says.

The study which was executed by a local civil societygroup, Institute for Community Mobilisation, using theTheatre for Development (TFD) methodology says theother community concern is that of early pregnancies andbreaking of marriages as illegal miners who are earning afortune from the trade take advantage of the poverty of girlsin the area to sleep with them.

The report says married women are also being coaxedto have extra-marital affairs with the miners who use

money as a tool to fulfill their malicious sexual intentions. One of the chiefs reportedly revealed that the miners

dangle amounts of money ranging from K10,000 toK15000 to buy sex from the women or girls.

It also says security threats are one of the concerns inthe area citing the case of Group Village Headman Saiitiwho confirmed to have been receiving death threats throughanonymous phone calls.

Illegal goldmining ruins Makanjira•Environmental degradation takes toll•Community experiencing high rate of pregnancies

By Marcel Chimwala

Gold panning activity at Unga River in Mangochi Makanjira

Mapemba: Police should use force to evict these illegal miners

September 2018 NEWS & ANALYSIS 9

The article is sponsored by Norwegian Church Aid

The callers have been threatening to kill him should hecontinue seeking for proper mechanisms and proceduresregarding gold mining in the area.

“Another version of threat has been presented in theperspective that those who are involved in illegal mining aremostly strangers and local people are living in persistentfear of the strangers in their midst,” says the report.

The other problem noted in the study is that schoolgoing children abscond classes to indulge in illegal goldpanning.

The gold buyers who are mainly from neighbouringcountries such as Mozambique, Zimbabwe, Tanzania andRwanda procure the precious resource at MK25, 000 pergram.

Mitigation measuresNCA Malawi Coordinator for Economic Governance

Programme, Thokozani Mapemba, says in view of theseproblems, the study established that members of thecommunity want the government to use force to flush outall illegal gold miners and buyers.

“People also proposed to the government to put in placea proper arrangement or mechanism such as bringing aninvestor that will employ locals so that they shouldsubstantially benefit from the gold found in their own land,”Mapemba says.

Commitments by stakeholdersMeanwhile, Chiefs, led by Group Village Headman

Saiti have committed to use different mechanisms to tracethe illegal miners so that they are kicked out of the areawhile members of the community have committed to stopproviding accommodation to the illegal miners.

Mapemba says on its part, the Natural Resource JusticeNetwork (NRJN) has committed to follow up on theissue to ensure that the police use force to kick out theillegal miners.

“NRJN will ensure that after the illegal miners arechased, a mining cooperative (company) is established toconduct mining activities in the area in a sustainable waythat allows that gold mining benefits both the communityand the country.

The Makanjira stampedeA group of over 300 illegal artisanal miners (both men

and women including children) have reportedly flocked theMakanjira area to conduct gold panning.

Deputy Director for the Department of Mines in theMinistry of Natural Resources and Mining Atileni Wonareportedly told Mining & Trade Review that thegovernment is startled by the expertise that the illegalminers have employed to extract the gold from the ore.

Wona said: “Based on the technical adroitness used bythe illegal miners in the extraction of the alluvial gold(free gold), there could be some big smuggler with expertisein artisanal gold mining behind the scenes privatelyimparting knowledge and skills on the illegal miners.”

“They have artistically crafted sluice troughs; they mixthe ore with water from Unga River to make slurry and passthe latter through the sluice troughs – they, thus, separatethe liberated gold grains from the slurry using gravityseparation technology.”

He said the team of Inspectors from Mines Departmentand Police Officers failed to stop this illegal operationreportedly because they saw elements of hostility from agreater number of the artisanal miners.

Wona, therefore, said his department wants “the issue tobe handled professionally with caution explaining that amulti-sectoral and more tactical approach would be ideal.”

He said the department is working out arrangementswith the Environmental Affairs Department and Malawipolice service to flush out the illegal buyers flocking theconcerned area, organize the artisanal miners into legitimatesmall-scale mining cooperatives and license them.

The Department also wants to train the artisanal minerson how to sustainably conduct gold panning as the currentpractice is heavily causing environmental dangers.

Wona said: “We also want to organize a small-scalelegitimate gold market within the area with the help of theChambers of Mines.”

“I am not sure whether as government we can quicklysolicite resources to be procuring the gold for resale.”

He said the government will also intensify monitoringand inspections in the area to address environmental andsocial concerns.

The Department of Mines fact finding missionidentified several cross-cutting issues associated with theillegal mining works which include problems of HIV/Aidsand sexually transmitted infections, environmental issuesthat could arise as the tailings are being dumped into UngaRiver, bad sanitation related diseases as there are no toiletsin the mining area, and other social issues such asalcoholism and theft

Unfilled gullies left after gold extraction

River polluted by gold mining activity

Vending has cropped up near the gold mining site

NEWS & ANALYSIS September 201810

Members of the community in Mayeraand Njereza villages in TraditionalAuthority Mponda’s area in Mangochihave proposed to Cement ProductsLimited, a local company which is

mining limestone for cement production in the area, toinvolve them in making decisions on corporate socialresponsibility projects.

This is contained in a report of a study by the Institutefor Community Mobilization and Empowerment (ICOME),which was tasked by Norwegian Church Aid (NCA) tobridge the information gap that existed between thecommunity members, investors and government officialsin the mining and cement factory area.

Action research Theatre for Development (TFD) wasused as a methodology to collect relevant data. Theresearch findings went through verification through TFDwhich is normally community discussions with dutybearers in this case government officials, civil societyorganisations, and investors

The report says: “During the study, members of thecommunity expressed concern over disorganized corporatesocial responsibility (CSR) by the company because thepeople are not involved in the process of identifying theproblems they are facing and suggesting their possiblesolutions. The factory management is also unwilling toassess the communities’ primary needs,”

“For instance, the company has provided cookingoil production machines and a nursery school to thecommunity instead of boreholes and a hospital, whichthey desperately need.”

Effects of disorganized CSR programmeNCA Coordinator for Resource Governance Programme

Thokozani Mapemba says the effect of such a disorganizedCSR programme by the company is that despite hostingsuch a landmark investment, the community members walklong distances to get assistance from a hospital located faraway when in fact the company could have built a hospitalwithin the community

Mapemba says lack of access to health facilities has ledto pregnant women in the area delivering on their way to thehospital due to long distances.

“This has also led to reduced amount of salaries amongthe workers at the factory if they are provided with transportto the hospital by their employers as this is deducted from

their monthly payment,” says Mapemba. In the report of the study, the community proposes that

as a solution to the problem of disorganized CSR, chiefs inthe area and Tonse Tipindule committee members shouldbe involved in the problem identification process andsuggesting of possible solutions.

The members of the community also suggest thatgovernment and non- governmental organisations shouldhelp in setting up an organised CSR programme, whichshould include the construction of boreholes and a hospital.

Air pollution The report also states that workers and villagers

surrounding CPL’s cement factory are exposed to excessivedust and chemical substances that pollute the air.

It says cement dust as well as chemicals that are used atthe factory also pollute the air.

There is also dust pollution emanating from mining sitesas when the limestone is blasted, it produces a lot of dustwhich pollutes the air in the community.

The report says the dust and chemicals cause persistentcoughs among the community members and workers in thearea.

“This, sometimes, leads to job termination if the work-ers stay home for a couple of days due to the illness,” itsays.

The community members recommend that CPL shouldprovide the workers with health and safety kits and milkbesides constructing a hospital for the community to,among other things, treat pollution cases.

Land degradation The report also observes that there is land degradation

which happens when the dust from the mining sites reachesthe ground. The mining blasts also leave big holes causingland degradation

It says when this dust which is produced during blastingfalls on the ground, that land becomes barren.

“There is also loss of vegetation which is caused by thedust when it falls on vegetation hence the area close to themining sites produces low yields because of the dust,” saysthe report.

Noise pollution The study report also points out that there is noise pol-

lution at the site resulting from mining blasts and factorymachines that are noisy throughout the day.

It says the mining blasts also cause earth tremorsbecause the limestone is blasted from deep down the ground.

“When blasting, the people who stay close to the siteare forced to vacate their houses temporarily. The housesclose to the blasting site end up cracking during the blasts,”says the report.

It, therefore, proposes to the mining company to find aspacious settlement and farming site for the people aroundthe mine where it should build houses for them so that theaffected villagers are able to lead a stable life.

Mangochi communityseeks voice on CementProducts Limited CSRprogramme• Communities should be involved in problem identification

• “they are oil machines and a nursery school instead of boreholes and a hospital”

The article is sponsored by Norwegian Church Aid

By Marcel Chimwala

CPL new clinker plant

September 2018 NEWS & ANALYSIS 11

Unfair pricing of raw materialsThe study also found out that lack of systematic

purchasing of raw materials such as sand by the companyis another problem.

The Company uses drivers to pay the local sand minersand the drivers pay for the same amount of sand differentlyto different people and choose whose sand to buy first.

“The effect of this is that women sand miners arecoaxed into having sexual relations with drivers who areresponsible for transporting the sand from the river to thefactory. This has led to the spread of sexually transmittedinfections,” the report says.

NCA, therefore, suggests that instead of driverspaying the sellers, the factory management should beresponsible for it, and should ensure that raw materialssuch as sand are being bought at a better price.

CPL’s responseResponding to the issues, raised in the report, MD for

CPL Aslam Gaffar tells Mining & Trade Review in aninterview that it is important that Malawians should notonly focus on finding faults on the company’s CSRprogramme but they should also look at the positives whichattest to the fact that the company is only one of the fewthat are doing well in terms of CSR, which is a voluntaryinitiative.

Gaffar says the company understands that there are stillmany projects which members of the community want to beimplemented which will be tackled in the future since it isimpossible to do everything at once.

“We started mining in January this year and from thento date, we have completed one school block. Rememberthat we cannot do everything in half a year. We arequarrying limestone for cement and not precious metal andwe have many problems, top of which is power which isactually threatening our existence,” he says.

Among planned CSR interventions, the companybought poles and the transformer for installation ofelectricity for the surrounding communities.

On health issues, a CPL Manager is quoted in the NCAreport as saying that the company pays 70% of the healthexpenses of the workers when they get sick implying onlythe remaining 30% is paid off by the worker.

The study also found that CPL has three First Aid Kitsdistributed throughout their three respective sites in the area.

ConclusionTo sum it up, TFD has indeed proved successful in

bridging the information gap that existed between the affectedcommunity and other stakeholder at CPL mining area.

The report says: “The participants felt that the dramathat was portrayed was the true reflection of the realitiestaking place in their surrounding communities.”

“They even proposed that TFD should often be coming totheir areas because it was talking about true and importantissues for the community’s sustainable livelihood.”

The article is sponsored by Norwegian Church Aid

Mangochi Mayera community leaders addressing the audience

Members of Mangochi Mayera community listening to Theatre for Development performance

Gaffar: Focus on positives

OPINION & ANALYSIS September 201812

Artisanal and Small-scale mining is defined as asingle unit of mining operations usuallycharacterised as informal, illegal and unregulatedby most governments. It is undercapitalized,utilizing simple tools, lacking in technology

and hazardous under labour intensive conditions. However,it is a source of income for those living in rural, remote, andpoor areas of the country hence these miners are described aspoor people or small groups who are largely dependent onmining for sustenance. Artisanal and small-scale mining inMalawi is at oftentimes carried out informally, characterisedby archaic methods of extraction leading to adverse effects andconsequences on human health and safety in communitieswhere such type of mining activities take place. Due to itsunregulated nature, participation in artisanal and small-scalemining breeds safety risks and hazards, environmentaldegradation and detrimental effects on education andpersonal health practices.

Artisanal and small-scale mining activities in Malawihave grown considerably in recent years and are a source oflivelihood for many families in rural areas. In 2016, it wasestimated that there were about 25,000 in Malawi with 65%licenced ones and some are unaccounted for though by 2018there are about 40,000 of them.

One of the most popular i s sues in mining i snon-compliance with occupational health safety standards.Many small-scale mining operations are said to be lackingin the following:¸ safety regulations¸ reinforcement of mine safety requirements¸ awareness of the risks inherent in mining¸ access to better equipment.

These factors lead to higher health risks and poorerworking conditions in small scale mining compared to formaland large-scale mining.

((aa)) EEnnvviirroonnmmeennttSmall scale miners are exposed to harmful effects of

physical, biological, chemical and ergonomic hazards. Theseoperations are exposed to safety and health hazards due tocontamination of the larger environment through run offs,air, ground contamination from landslides and subsidence.

The main primary effect of artisanal and small-scalemining is leachate of mine tailings that contaminate groundwater. The whole groundwater system is heavily pollutedwith heavy and toxic metals, organic chemicals that areapplied during mineral separation and some waste materialthat is released. Some plants absorb polluted water and thismay contain disease pathogens. The adverse effects of smallscale mining to the environment include:¸ contamination of water due to improper waste

disposal from mines¸ erosion in the mining sites¸ mercury and cyanide poisoning¸ contamination of rivers and lakes¸ river siltation and pollution affecting drinking

water. The major environmental impacts are of visual in nature.

Poor waste management practices are particularly extensivedue to lack of established waste disposal facilities. Theimpact of mining on air quality is limited to the generation ofdust. These fines are washed away by rainfall and may betransported by either suspension or siltation into the riversystem.

Potential environmental impacts of artisanal and small-scale mining on rivers could be changes in hydrology andwater quality, as a result of land clearing, soil erosion andland degradation due to mining and processing activities.

Changes in hydrology can alter available hydrologicalhabitat for aquatic biota, and increased turbidity may lead tosmothering of aquatic habitats. Clearing of vegetation,unregulated sewage from mining camps and rubbish disposalcan impact on the rivers nutrient concentrations and habitats.With artisanal and small -scale mining especially gold, theseenvironmental impacts are temporarily variable due to thefact that there is high demand for water during dry seasonsand excess water in wet seasons altering the flow of theriver/stream. Further, degradation of the river water qualityand ecology can have flow-on impacts to fishing andsuitability for drinking. Artisanal and small-scale miningbrings toxins, including heavy metals that can migratedownward and contaminate aquifers.

((bb)) HHeeaalltthhArtisanal and small-scale mining is associated with

devastating health impacts for both men and women, but aswork on the fields is often quite segregated, the healthimpacts are quite specific. Miners are particularly susceptibleto negative impacts on health.

The main diseases possibly occurring due to artisanal andsmall-scale mining include silicosis, cancer, pneumoconiosis,TB, abnormal lung function. While men work primarily inthe mines, women and children can work both in and aroundthe mines and at home, balancing mining and householdresponsibilities. This blend of mining and household workresults in an array of health problems for miners, familymembers and surrounding communities. Women are ofteninvolved in processing and waste disposal, exposing them toharmful chemicals, neurological damage, and dust, whichcan lead to asthma or lung disease with severe consequencesfor family well-being and health, including duringpregnancy.

In Malawi, measurements of pulmonary function,respiratory symptoms, quantitative assessment of mercuryexposures and other toxic metals as well as health risks thatthese activities and the surrounding communities areexposed, are either lacking, partly done or not compiled asfar as artisanal small-scale mining is concerned. There is alsonot much information on existing data on cardiovascular andrespiratory health, WASH, sexual, psychosocial health andnutrition. Malawi, like any other SADC country, hasregistered high rates of lung disease occurrence. This hasbeen attributed to poor working conditions in mines andHIV-AIDS prevalence. The seasonal and migratory nature ofartisanal and small-scale mining can lead to high-riskbehaviour that can facilitate the spread of sexually transmittedinfections (STIs), HIV and AIDS/HIV infection coupled withoccupational exposure to dust are important risk factors fortuberculosis, particularly among the miners. OccupationSafety, Health and Environment need to be promoted in orderto protect miners and their families (Malunga GWP,2018).The absence of regular environmental audit, inspection,monitoring to small-scale miners by the responsible governmentbody and limited access to healthcare services makes it verydifficult to attribute to specific diseases that are associatedwith the impacts of small scale mining operations on theenvironment.

((cc)) SSaaffeettyyMining work is both lucrative and hazardous and for this

reason, the frequency of accidents and injuries is very high.Mine accidents range from collapse of walls to a total cavingof mine tunnels, which often lead to fatal trapping of mineworkers, landslide, lack of air, emission and extraction ofnoxious gas. These are also applied to underground artisanaland small-scale mining. Most of the relevant causes of

accidents among small scale miners are:¸ rock falls and subsidence¸ use of poorly maintained equipment¸ non-compliance on wearing proper personal

protective equipment¸ Erosion¸ Suffocation¸ poisoning¸ explosions¸ unsafe acts and conditions.

Recently the ILO (International Labour Organization)reported that occupational fatality rate in small scale miningin developing countries rose up to 90 times higher than inindustrialized countries. In countries where artisanal andsmall-scale mining is practised, the frequency of mine accidentsis so high that national authorities worry about their continuedoperations and start to take steps to outlaw the activity. InMalawi, the spate of mine accidents has increased considerablywith the growth of artisanal and small-scale mining as a businessand it has been observed that most of these activities takeplace without the use of Personal Protective Equipment(PPE). This is a serious health and safety concern.

Artisanal and small-scale mining is inherently risky, butlittle is known about mining-associated hazards and injuriesin Malawi since there is no updated data. Data obtained fromthe National Compensation Commission from 2000 to 2011comprising industrial occupational injuries, mining aloneindicated that injuries accounted for 1.9% of 2034 accidents.However, it did not specify as to what type of injuries had thebiggest contribution, what safety measures were implemented,which type of mining section (large or small scale) was affectedmost, the contributing factors(hazards), consequences andpreventive measures that were existing and also the ones thatcould be implemented. The negative impact of poor workconditions is unappreciated and the scientific basis for interventionsand policy formulation is to a great extent absent in Malawi.

During a site visit in areas where alluvial gold mining byartisanal and small-scale mining is taking place in Malawi(Mangochi and Lilongwe districts), children of school-goingage were either seen absenting or dropping out from schoolto engage in these activities. In many cases, these childrenare income earners providing for household incomes. Almostall work performed by children in artisanal and small-scalemining is hazardous and has characteristics that fit thedefinition of a “worst form of child labour” under ILOConvention No. 182 (International Labour Organization,2005). It is difficult, however, to eliminate or limit theparticipation of children in artisanal and small-scale mining,given its transient and informal nature and associated levelsof poverty. But participation of these children has serioussafety implications.

Generally, artisanal and small-scale mining is one of theworst forms of child labour because of widespread andsevere hazards that risk death, injury and disease (ILO 2005).Children undertake risky tasks such as heavy lifting, digging,ore haulage and transport of ore/waste. Child labour includeschildren working and being exposed to most hazardousconditions, involvement in prostitution, drug and alcoholabuse and violence. Some of them often become slaves tomine owners or pit owners who employ them and workthroughout the day without having enough rest. Despite theoften-high risk of injuries and fatalities associated withthese activities, economic considerations remain the mainmotivation for children to abandon school. Poor regulation ofhealth and safety expose them to extreme risks. Women alsooften suffer from crime, gangsterism, domestic violence andrape and are forced into prostitution. This is also a serioushealth and safety problem

MININGSocial Issues&

The Author, IIggnnaattiiuuss KKaammwwaannjjee, is a Consulting Geoscientistwith experience in Mineral Exploration, Mining Geology, ESIA,Ground Water Resources and Occupational Safety, Health andEnvironment. CCoonnttaacctt(s) on: igkamzy@yahoo.com - 00999999221166886699

EEnnvviirroonnmmeenntt,, HHeeaalltthh aanndd SSaaffeettyy((EEHHSS)) ooff AArrttiissaannaall SSmmaallll--SSccaallee MMiinniinngg iinn MMaallaawwii

September 2018 ADVERTISEMENT / NEWS & ANALYSIS 13

The Malawi Energy Regulatory Authority (MERA) has come up with aStandard Power Purchase Agreement (PPA), which will provide thebasis for independent power producers (IPPs) to sell power to thenational grid.

The energy regulator says in a statement that the PPA will provide for legal,technical and economic obligations of the seller and purchaser of power.

“It is one of the tools that will facilitate the creation of a conducive environmentfor Independent Power Producers (IPP’s) to invest in the country,” says MERAin the statement made available at this year’s Malawi Investment Forum (MIF).

The Standard PPA will interlink various elements in the Malawi RenewableEnergy Feed-in Tariff (REFIT) and the Malawi Grid Code, which are gearedtowards promoting investment by IPPs.

“The standard PPA provides the minimum standards which sellers andpurchasers of electricity have to include in their PPAs, and all the PPAs will haveto be approved by MERA.”

MERA says by coming up with the standard PPA, it intends to ensure thatthere is a reduction in the transactional costs that may be incurred by sellers andbuyers of electricity in coming up with a PPA.

The Standard PPA has 20 clauses and schedules to deal with followingissues: Definitions; Scope and Duration; Construction Security; Constructionand Commission; Operation and Dispatch; Maintenance and Repair; Saleand Purchase of Electricity; Invoicing and Payment; Metering; Insurance,Undertakings; and Warranties; Force Majeure; Termination and Default;Indemnity and Liability; Confidentially; Dispute Resolution; Maintenanceand Operating Records; Operational Maintenance Requirements; MiscellaneousProvisions, and the Governing Law.

The coming of IPPs is expected to substantially increase Malawi’s powergeneration capacity, as inadequate power generation has inflicted a heavy blowto mining and other heavy industries.

For instance, the Kayelekera Uranium Mine in Karonga, which is so far thecountry’s largest mining investment, closed partly because the miner PaladinAfrica found it extremely expansive to operate the mine using power from dieselgenerators as it was failing to connect to Escom’s grid

A number of mining projects including those for heavy mineral sands in theshores of Lake Malawi have also struggled to take off due to power problems.

In order to attract IPPs, MERA has also embarked on a process to reform thepower tariff structure to attract more IPPs on the market by enabling profitablepower generation operations by the private companies.

Malawi has an installed power generation capacity of 363 MW, whichincludes 346 MW hydroelectricity, 17 MW solar.

The country is failing to generate power to full capacity because of low waterlevels on the Shire River, which hosts up to 98% of the power stations forElectricity Generation Company of Malawi (EGENCO).

The coming in of IPPs, which besides hydro-sources, are expected togenerate power from alternative sources including coal, wind, solar and biogasis, therefore, expected to provide security of supply.

Among other developments on IPPs, at this year’s MIF, SU-KAM Energysigned a memorandum of understanding with Escom to supply 41MWfrom Bongozi Power Plant on Bua River. The ceremony was presided over byMinister of Natural Resources Energy and Mining Aggrey Masi

By Wahard Betha

MERA develops standardpower purchase agreement

Minister Aggrey Masi presided over signing of agreement with IPP

OPINION & ANALYSIS September 201814

ABSTRACTSustainable development has been described as a means of development that meets the

needs of the present without compromising the ability of future generations to meet theirown needs. The mining sector needs to adopt this philosophy as it deals with depletableresources. The role of the community, government and resource companies in promotingsustainable development is described.

INTRODUCTIONSustainable development is about society, economy and environment. These three

entities are supposed to be nurtured in such a way as to bring positive benefits for currentand future society. Sustainable development in the mining sector should address threeconstituents which are mining communities, government and resource companies.

Resource companies will look for high return on their investments while creatingcommunity benefits and generating reasonable revenue to government for economic growth.Government formulates taxation and fiscal regime that generates maximum benefits while

attracting investment. The government has the responsibility of being transparent andaccountable on mineral revenue utilisation. Where revenue is able to cover budgetaryneeds, the excess amount should be invested as sovereign wealth for future generation.The figure above summarises the concept of sustainable development in mining.

Community benefits from mining includes social and economic benefits andenvironmental protection. Social benefits include water, education and health programswhile economic benefits include access to agriculture markets, infrastructure services andemployment opportunities. Issues of environmental protection are cross cutting in all thesesocial economic benefits. Mining should take care of avoiding air, water and otherenvironmental degradation. Communities are supreme and need to accept projects througha process of engagement. The role that government and resource companies enter intoresource contracts should be accepted by concerned citizens and this is what promotessustainable development.

ECONOMIC BENEFITS OF MININGEconomic benefits of mining come through taxation and fees. Taxation takes form of

Corporate Tax, Value Added Tax, Pay As You Earn (PAYE) and Resource Rent (Windfallprofits). Fees collected include royalties, land rates and various application fees.

Recent developments have advocated for Community Development Agreements andmeaningful Corporate Social Responsibility that uplift mining communities from povertyto prosperity.

The above thinking is against the philosophy of thinking that mining sector revenue isa cake for the whole country to share and a misunderstanding that CSR is a must and nota moral way of doing business that fosters good relationship with local communities.

SOLUTIONS OF SUSTAINABLE DEVELOPMENT IN MININGSustainable development in mining is the responsibility of all three parties. It is proposed

that non-Tax Revenues be split between main government account and Community Trust.These should include royalties and ground rent.Government needs to encourage minority share-holding through community trust in resourcecompanies. Dividends for Community Trustshould serve communities within a 20 kmradius. The role of women and youth should beclearly defined.

Any option for Community DevelopmentAgreement should start being negotiated duringfeasibility studies in order to assess viability ofsuch interventions. Where Mines and MineralsAct is weak, international standards must bemet. The government should be clear on rules ofengagement and be able to help reduce resourcegovernance speculations. Investors should beprotected from being hounded out of theirinvestments.

Government intervention in mineral resourcedevelopment should display even playing field,show tangible benefits to its citizens and helpmake mining profitable thus attract mininginvestment. A system for determining fair mineralprices should be put in place.

Both resource companies and miningcommunities should be agents of environmentalprotection especially on air, water and vegetation.

INVESTOR PESPECTIVEInvestors are of the view that government should realise that financing and developing

a mining project is complex and time consuming requiring government support through astable taxation and fiscal regime with a robust security of tenure.

Appropriate incentives for investment and managing community expectation should bea shared responsibility.

CONCLUSIONSustainable development in mining requires a development consensus that meets the

needs of the investor, government and mining communities while taking into account theneeds of the future generation and protection of the environment.

Issues related with resource contracts and social contracts must be fair, transparent andacceptable to all stakeholders

by Grain Wyson Phillip Malunga FIMMMMinerals, Geology, Environment & Corporate Affairs Consultant

Sustainable Development in the Minerals Sector

September 2018 ADVERTISEMENT 15

from page 2

ISSUE NO. 65 September 2018

MINING & BUSINESS NEWS THAT MATTERS

Mineral exploration firm, Spring StoneLimited (Spring Stone), has donatedexploration equipment worth US$200,000to the Geological Survey Department(GSD) in the Ministry of Natural

Resources, Energy and Mining.Spring Stone handed over the equipment, including

three YBM-05 drilling rig machines, three-phase motor,automatic cement mixer, solar panels, winch, gas engine,vibracore and drilling tools, pumps, measuring scales,buckets, and shod rocks to officials from the Ministry inLilongwe and Zomba on August 23, 2018 after finalizingfield exploration work for Rare Earth Elements (REE) atChambe Basin on Mulanje Mountain. One rig is expectedto be passed on the Geological Faculty at Malawi Universityof Science and Technology.

Government officials included Director of Administration,Mr. Gusto Patrick Mabvuto (who was the Guest of Honour),Acting Director of GSD, Mr. Kondwani Dombola, andDeputy Director, Mr. Dennis Makwela.

One of Spring Stone’s directors, Mr. Elton Jangale,urged Government to take good care of the equipment andput it into good use.

“Spring Stone thought it wise to donate to the GeologicalSurvey Department knowing the great role the Departmentplays on exploration issues. We also considered thatGovernment has Malawi University of Science andTechnology (MUST) which has a Geological Faculty and thatone drilling rig would be shared with MUST for training ofits students, so that its graduates will be going into thebusiness world practically equipped,” Jangale said.

On behalf of Government, Mabvuto thanked SpringStone for the donation saying such high-tech equipmentwill assist GSD to execute various studies includingfollowing up on mineral anomalies.

“Government regards the mining sector as a catalystfor economic development and currently we are undertakinga number of positive initiatives to create a conduciveenvironment in the development of the sector. The

donation has come at an opportune time as we are currentlycarrying out geological mapping, ground screening (Kauniuni)and many other relevant projects.” Mabvuto said.

A Malawian registered company, Spring StoneLimited, is a 100% subsidiary of Spring Stone ExplorationInc., a private company registered in British Columbiawhich is in turn a 100% subsidiary of Canadian publiccompany Irving Resources Inc.

It has been conducting the Chambe Basin explorationproject in a joint venture arrangement with Japan Oil, Gasand Metals National Corporation (“JOGMEC”). Thecompany has so far invested at least US$3,890,442.00 inthe project.

Spring Stone acquired the Mulanje EPL based onthe results of assays conducted by JOGMEC on thereconnaissance samples collected by the GSD in 2010.

The company then contracted Japan’s Mitsui MineralDevelopment Engineering Co. Ltd (“MINDECO”) whichundertook two phases of systematic short-hole drilling,with some pitting, initial environmental sampling, andanalyses of soils for leachable rare earth elements (REE)

from March 2011 to March 2014. The campaign discovered a superficial horizon of

rare-earths-bearing kaolinite clay ranging from 3 m to 26m in thickness.

Spring Stone also engaged international ESIA expertsGolder Associates which initiated an environmental baselinesurvey for ESIA in July 2012 only to be halted by objectionsobtained by a group called “Concerned Citizens”.

Concerned Citizens are continuing to object to theexploration work in the Chambe Basin despite Spring Stone’sinitiatives to engage them into dialogue on the project.

Dombola described the actions by the ‘ConcernedCitizens” as a threat to investment saying Government willscale up sensitization of communities to address suchissues.

“It is high time Malawians appreciated that miningprojects are there not only for the benefit of the foreigninvestor but Government and the local people as well,” hesaid.

Government on February 14, 2018 renewed SpringStone’s EPL for Chambe for additional two years

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

By Wahard Betha

Spring Stone donates exploration equipment to Malawi govt.

Mabvuto (R) receiving donation from Spring Stone’s Jangale (L) while Makwela (3rd L) and Dombola (far L) look on