not registered yet? Register
Register for free access
Already registered? Login

Malawi

Legislation

  • Mines and Minerals Act 2018
  • Taxation Act 1964 (as amended)
  • Environmental Management Act 2017
  • EIA Guidelines

Regulatory Risk Rating

Severe
Regulatory Risk

Regulatory Corruption Risk

Very High
Regulatory Corruption Risk

Corruption Exposure Risk

Moderate
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

Severe
Regulatory Risk

Regulatory Corruption Risk

Very High
Regulatory Corruption Risk

Corruption Exposure Risk

Moderate
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.

[ Back to top ]


Legal Risk Report

Purchase the Legal Risk Report in PDF format.

Purchase report

[ Back to top ]