Malawi Government Still Negotiating the Kayerekera Successor Arrangement With Lotus Resources

Principal Secretary (PS) in the Ministry of Mining, Martin Phiri, has disclosed that the Malawi Government is still negotiating a Mining Development Agreement (MDA) with Lotus Resources to ensure that the country does not repeat the Kayerekera saga.

Phiri made the remarks in Karonga during the 2023 Karonga District Alternative Mining Indaba held at Karonga Boma on Tuesday.

NCA-DCA Malawi Country Joint Programme organized the indaba in conjunction with the Catholic Commission for Justice and Peace (CCJP) to enable stakeholders to discuss and identify lasting solutions to social and economic issues facing the extractive industry.

Phiri assured that his ministry will ensure that there are ample consultations across all stakeholders.

“To this end, we are now comfortable with a progressive tax regime that is being used as we negotiate with Lotus Resources in order to realise maximum benefits for the betterment of Malawians. We do not want another incident that leads Malawians to wonder what happened to the promise of more than a decent reward for our natural resources. We do not want a repeat of the ‘what happened’ question that was on everyone’s lips following 10 years of uranium mining here in this district and little, if anything, to show for it at local and national levels. We would like to ensure that the things we are struggling with now, like lack of foreign exchange, are eased as a result of such ventures,” said Phiri.

The newly revised Mines and Minerals Act, which was recently passed and assented to by President Dr. Lazarus McCarthy Chakwera, provides for 0.45 percemt from gross revenue for use by the community under the Community Development Agreement.