Archaic regulation stifles Malawi mining sector growth

Malawi continues to regulate its mining sector using portions of legal instruments that are over 40 years old, a situation experts say is affecting growth of the sector. Twice, over the years, the country has attempted to transform the sector through mining legislative reforms. Desk research conducted by this publication found that the official Application Form for a Reserved Minerals Licence—used today by applicants seeking to buy, hold and sell minerals— explicitly cites the Mines and Minerals (Reserved Minerals Licence) Regulations of 1985 as its governing instrument. This is despite that the country enacted a new Mines and Minerals Act in 2019. Again, the country replaced it with Law No. 25 of 2023, which regulates all matters related to prospecting, exploration and mining of minerals in the country. The research shows that new regulations meant to operationalise the 2019 law were drafted but were yet to be gazetted. A Ministry of Mining press release, signed by Secretary for Mining Joseph Mkandawire, announced public consultations on 10 sets of draft Mineral Title Regulations under the 2023 Act, covering areas such as exploration licences, mining licences, community development agreements and mine rehabilitation. The deadline for public submissions was June 30, 2024 but no new regulations have since been gazetted. The Mining and Minerals Regulatory Authority (MMRA), which was established under the 2023 Act, is mandated to regulate the sector and monitor compliance by licence holders. However, without gazetted regulations, experts say its ability to fully enforce provisions of the new law remains limited. Natural Resources Justice Network (NRJN) National Coordinator Kennedy Rashid said reliance on old regulations created a governance gap that could undermine implementation of the current law. "Regulations are critical instruments for operationalising legislation and the continued reliance on outdated regulations risks weakening regulatory certainty, investor compliance, government oversight and community protections," he said. Mining expert Grain Malunga said while the delay was unfortunate, the situation should be understood within the context of the broader government legislative process. "It must be understood that running a government is a shared responsibility. The regulations cannot be gazetted without vetting and authority of the Ministry of Justice. Most likely, the delay is at the Ministry of Justice," Malunga said. Mining Minister Thoko Tembo said the government already drafted new regulations following the enactment of the Mines and Minerals Act of 2019. He said the process was delayed after the 2023 amendments transferred regulatory functions from the ministry to MMRA, requiring all draft regulations to be reviewed and aligned with the authority's new mandate. Tembo said the ministry and MMRA subsequently developed 10 sets of draft Mineral Title Regulations and, later, prepared an additional set of regulations on mineral beneficiation and value addition following the 2025 Presidential Order banning the export of raw minerals.

WIRE — Malawi continues to regulate its mining sector using portions of legal instruments that are over 40 years old, a situation experts say is affecting growth of the sector. Twice, over the years, the country has attempted to transform the sector through mining legislative reforms. Desk research conducted by this publication found that the official Application Form for a Reserved Minerals Licence—used today by applicants seeking to buy, hold and sell minerals— explicitly cites the Mines and Minerals (Reserved Minerals Licence) Regulations of 1985 as its governing instrument. This is despite that the country enacted a new Mines and Minerals Act in 2019. Again, the country replaced it with Law No. 25 of 2023, which regulates all matters related to prospecting, exploration and mining of minerals in the country. The research shows that new regulations meant to operationalise the 2019 law were drafted but were yet to be gazetted. A Ministry of Mining press release, signed by Secretary for Mining Joseph Mkandawire, announced public consultations on 10 sets of draft Mineral Title Regulations under the 2023 Act, covering areas such as exploration licences, mining licences, community development agreements and mine rehabilitation. The deadline for public submissions was June 30, 2024 but no new regulations have since been gazetted. The Mining and Minerals Regulatory Authority (MMRA), which was established under the 2023 Act, is mandated to regulate the sector and monitor compliance by licence holders. However, without gazetted regulations, experts say its ability to fully enforce provisions of the new law remains limited. Natural Resources Justice Network (NRJN) National Coordinator Kennedy Rashid said reliance on old regulations created a governance gap that could undermine implementation of the current law. "Regulations are critical instruments for operationalising legislation and the continued reliance on outdated regulations risks weakening regulatory certainty, investor compliance, government oversight and community protections," he said. Mining expert Grain Malunga said while the delay was unfortunate, the situation should be understood within the context of the broader government legislative process. "It must be understood that running a government is a shared responsibility. The regulations cannot be gazetted without vetting and authority of the Ministry of Justice. Most likely, the delay is at the Ministry of Justice," Malunga said. Mining Minister Thoko Tembo said the government already drafted new regulations following the enactment of the Mines and Minerals Act of 2019. He said the process was delayed after the 2023 amendments transferred regulatory functions from the ministry to MMRA, requiring all draft regulations to be reviewed and aligned with the authority's new mandate. Tembo said the ministry and MMRA subsequently developed 10 sets of draft Mineral Title Regulations and, later, prepared an additional set of regulations on mineral beneficiation and value addition following the 2025 Presidential Order banning the export of raw minerals.

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