Malawi
Legislation
- Mines and Minerals Act 2018
- Taxation Act 1964 (as amended)
- Environmental Management Act 2017
- EIA Guidelines
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
| Regulatory Risk Rating Factors | Risk Level |
|---|---|
| First Come / First Serve | Subscribe |
| Application Criteria | Subscribe |
| Duration | Subscribe |
| Right to Renew | Subscribe |
| Competing Licences | Subscribe |
| Mineral Coverage | Subscribe |
| Right to Mine | Subscribe |
| Criteria for Mining Rights | Subscribe |
| Tenure | Subscribe |
| Surface Rights | Subscribe |
| Government Take | Subscribe |
| Transfer Rights | Subscribe |
| Change of Control | Subscribe |
| EIA Process | Subscribe |
| Power to Revoke | Subscribe |
| Age of Legislation | Subscribe |
| Other Factors | Subscribe |
A change in risk rating of +20 is a considerable success for Malawi - given how weak the legal framework was prior to the introduction of the Mines and Minerals Act 2018 (MMA). Yet, whilst the 2018 law certainly has the potential to increase interest in Malawi's mining industry, such potential is limited both by the excessive amount of government discretion within the MMA and by the fact that the law is undoubtedly a considerable weight for operators to bear. In spite of the improvements the 2018 law has made, Malawi remains in the 'Severe' category of risk - meaning it is likely that interested parties will seek some form of agreement with the government prior to the obtainment of mining rights to ensure protection of investment - a somewhat unsatisfactory outcome following a legislative reform process.
Contents
Legislation
- Mines and Minerals Act 2018
- Taxation Act 1964 (as amended)
- Environmental Management Act 2017
- EIA Guidelines
Regulatory Risk Rating
Regulatory Risk
Regulatory Corruption Risk
Regulatory Corruption Risk
Corruption Exposure Risk
Corruption Exposure Risk
Overview
Traditionally, mining has not been a large economic contributor in Malawi. However, in 2009 the Kayelekera uranium mine opened, which had a considerable impact on the country’s economy. Unfortunately, as a result of the crash in uranium prices, the project (85% owned by a subsidiary of Australian based Paladin Energy with a 15% equity interest issued to the Malawi government) is currently suspended and the mine has been under care and maintenance since 2014. Besides uranium, Malawi is known to have produced clay, cement, coal, gemstones, sulphuric acid, and lime (USGS). The country is also believed to have deposits of phosphates, bauxite, kaolinitic, kyanite, graphite, sulphides, titanium minerals and rare earths. Canadian-owned Mkango Resources is developing at least one rare earth mine in the jurisdiction, as well as continuing other on-going exploration efforts. Mines in Malawi are primarily privately owned and there are several small-scale or artisanal mining operations focused on the production of gemstones.
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