
The Ministry of Mining has warned players in the sector against entering into private arrangements to buy or sell mineral rights without following the procedures prescribed in the laws.
The warning follows advertisements and other public communications that certain mining licences or mineral rights are available for sale
In a statement signed by Secretary for Mining Rodwell Mzonde, the Ministry says mineral rights issued by the Government of Malawi under the Mines and Minerals Act, 2023 are subject to specific legal requirements governing their transfer, assignment or disposal.
The Ministry says such transactions should not be treated as ordinary commercial sales because mineral rights are statutory rights granted by the government.
It adds that any lawful transfer or assignment of mineral rights must comply with the Mines and Minerals Act, 2023 and applicable regulations, including obtaining the necessary approvals from the relevant government authorities.
The Ministry has, therefore, urged mineral rights holders, investors, financial institutions and the general public to exercise caution before entering into agreements involving mineral rights.
It has also clarified that the sale of mining equipment, infrastructure or other business assets does not automatically amount to a lawful transfer of mineral rights.
It states parties that transfer or acquire mineral rights outside the requirements of the law may be subject to enforcement measures.
It says the warning is part of efforts to ensure transparency, accountability and proper administration of Malawi's mineral resources.
Minister of Mining Thoko Tembo announced in Parliament that Government is executing enforcement measures against Rift Valley Resources Development for allegedly transferring the mineral rights for Kangankunde Mine in Balaka to ASX-listed Lindian Resources without following appropriate procedures.
“Acquisition of shares in a company does not automatically transfer the mineral licence. Tembo told Parliament.
Malawi has also seen a number of corporate acquisitions this year with ASX-listed Auking currently in the process of taking over Green Exploration Limited, a subsidiary of ASX-listed Tusker Minerals that is managing its exploration prospects in Malawi including Tundulu in Phalombe, Machinga and Salambidwe.