Mining Minister Monica Chang’anamuno has said the prospects that Malawi has oil and gas are high.
Chang’anamuno was responding to a questionnaire on the deafening silence on the issue of oil and gas which had excited Malawians around 2011.
The prospects of Malawi having oil and gas brought some ecstasy among Malawians around 2011 as they thought that the country would soon join the ‘big boys’ league of oil producing countries.
At that time, the authorities demarcated Malawi into six blocks and exploration licences were issued to firms such as Sure Stream, Sac Oil, RakGas, and Pacific Oil.
Later in 2015, United Arab Emirates (UAE) oil and gas exploring company Hamra Oil Holdings Limited bought Sure Stream’s licence.
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But about 13 years later, the excitement has died down.
In a written response to a questionnaire yesterday, Chang’anamuno said potential areas were identified with thick sediments over 4,000 metres, which is well above the oil forming window.
According to the minister, the companies that were doing exploration left due to Covid.
“They could not get funding to continue with their work as, at that time, the global economy was under stress. They had done 40 percent of the work before Covid came.
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“Right now what we need are investors that can come in and pick up from where the previous companies left. The data sets from the previous work are available,” Chang’anamuno said.
Mining expert and former minister of Mines Grain Malunga yesterday said Malawi needs to improve its attitude towards investors in the mining space if the country is to start registering meaningful progress in the area.
“It is the attitude towards investors that is delaying us from making good gains in terms of finding new minerals and oil and gas. We expect too much. Even the way we give our incentives. We give them high taxes, no negotiations, as if we know what we have when we don’t know,” Malunga said.
According to Malunga, the investors would want to be diplomatic and, as such, they cite reasons such as Covid for abandoning their operations when, in fact, it’s because of the country’s attitude towards them.
“Sometimes they get bored and go. They can’t keep on waiting when other people are beckoning them to go and invest in their countries,” Malunga said.
Meanwhile, Malawi will from today host the first-ever Mining Investment Forum in Lilongwe under the theme ‘Transforming the Nation through Sustainable Mineral Extraction’.
The event has been organised by the Malawi Government in partnership with the private sector, development partners and other stakeholders to showcase and promote Malawi’s mining sector.
The forum is expected to serve as a platform for multi-stakeholder engagement, bringing together government representatives, development partners, mining companies, artisanal and small-scale mining operators, financial institutions, civil society organisations, academia, and various service providers.
It is believed that through constructive discussions, informative showcases and networking opportunities, participants will explore strategies and solutions that accelerate the growth of the mining sector.
