Malawi’s push to reduce reliance on imported coal could gain fresh momentum as local miners seek support to expand production and meet growing demand.
The newly established Coal Mines Association (CMA) has called on financial institutions and government to finance the coal mining industry, saying increased investment could improve local production and save the country’s scarce foreign exchange.
CMA chairman Hastings Jere made the call in Lilongwe during a meeting with the Mining and Minerals Regulatory Authority (MMRA).
Jere said lack of financing remains one of the major challenges preventing local miners from increasing production and improving the quality of coal produced in Malawi.
“A lot of people will tell you that Malawi doesn’t have coal, but that is not true. As an association, we believe there is a lot of coal in the country, although the problem remains in financing the industry,” he said.
Jere said the association would lobby financial institutions to support miners with financing for machinery and other equipment needed to expand operations.
He also challenged companies that import coal to consider sourcing from local producers, arguing that this could help reduce the country’s demand for foreign currency.
“We are wondering why companies would spend dollars to import coal. We believe that if they can give us the business, we will be able to purchase good machinery, thereby producing good quality coal and saving forex for the country,” he said.
Jere said the association would also work with MMRA to strengthen regulation of the industry and engage government for guidance and support.
“We are looking at the government as a bridge for the success of these pillars,” he said.
MMRA Inspection and Enforcement Manager Chimwemwe Bandazi welcomed the formation of the association, saying it could become an important partner in regulating and developing the sector.
“We are encouraged by the initiative taken by the association. This is a right step for the industry as we move towards developing mining,” said Bandazi.
The development comes as banks and listed companies have shown growing interest in Malawi’s mining sector.
The Coal Mines Association currently has 14 registered miners.
The cement manufacturing industry is among the notable users of coal in Malawi, relying on the mineral as part of its production process.
