By Kingsley Jassi:
State-owned Malawi Mining Investment Company (Mamico) has disclosed its desire to secure at least 40 percent shareholding in all mining ventures to maximise the country’s benefits from the minerals.
However, Mamico Chief Executive Officer Leonard Kalindekafe was quick to say this would require heavy financing of the company to be able to invest in the mining ventures.
In an interview, Kalindekafe said it is not plausible to be comfortable with just 15 percent free equity that is entitled to government in the mining ventures, saying there has to be some equity investment to protect considerable commercial interests in mining development, which the company will strive on.
“We need to find ways of raising resources to invest in these mining ventures because that is the only way the country can increase benefits from the existing minerals,” Kalindekafe said.
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According to Kalindekafe, the company will be involved in exploring potential mineral sites and build partnerships with other investors to develop mines.
Malawi Chambers of Mines coordinator Grain Malunga said leaving mining investment in the hands of foreign companies limits what remains in Malawi after the minerals are extracted and exported.
He faulted Malawians for expecting too much but investing so little in the exploration and development of the mines.
“ Mining is expensive undertaking and if Malawians want to benefit more, there is need to invest heavily in the development of the mines but right now there isn’t much of local participation so that limits the benefits,” Malunga said.
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He described the setting up of Mamico as a potential game changer if it plays the role it was set up for – to protect commercial interest of government in the mining sector.
There was no immediate response from Treasury on its plans with Mamico and how far it would be allowed to participate in the mining ventures.
The mining sector was recently structured with the establishment of the Mining and Minerals Regulatory Authority to regulate the sector while Mamico was also established as an investment vehicle to exploit the country’s mineral worth.
