Malawi’s Central Bank accused of promoting illegal mining

Parliamentary Committee on Natural Resources and Climate Change says Reserve Bank of Malawi (RBM) is promoting illegal mining in the country by buying Gold from illegal miners.

The Chairperson of the Committee Werani Chilenga said on Tuesday that the country is losing 20 Million Kwacha on daily basis because of illegal Gold mining a situation which is very worrisome and needs an urgent response.

Chilenga added that they are concerned about the issue and as a cluster they are very sure that nobody in the country has been given a license to do Gold mining which shows that all Gold that Reserve Bank is buying is coming from illegal miners.

The committee has recommended that Gold purchasing should stop until the Ministry of Mining comes up with the list of those who have been licensed to Gold mining.

“Why should Reserve Bank of Malawi instead of assisting the country to contain the illegal mining issue should be on forefront fueling that, we have all along been complaining that there is illegal mining at Namizimu, Malingunde, Kasungu, Nkhotakota and Mzimba,” he said.

He went on to say that there is a need to implement laws in fullest considering that Malawi has Mines and Minerals Act which was passed in parliament in 2019 so that there should be licensed miners.

In the budget statement delivered on May 28, Minister of Finance Felix Mlusu informed the August House that the Reserve Bank of Malawi has established a structured minerals market and commenced buying gold on 1st May 2021.

He added gold worth K60.0 million had been purchased by the Bank at the time.

“This market will go a long way in supporting Artisanal and Small-Scale Miners,” the minister said.

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