Frank Mwenefumbo from National Development Party has voiced significant issues about Lotus Resources PLC activities at Kayerekera Mine in Karonga Malawi.
The Australian company operating Kayerekera Mine violates Malawi’s Mining and Minerals Act through its failure to meet local procurement rules according to Mwenefumbo who predicts this will create major economic as well as social problems for the region.
Mwenefumbo published through Facebook that Lotus Resources selected a South African company to handle all procurement tasks. By choosing to work with a South African firm Lotus Resources bypasses Malawian suppliers from participating in their supply chain thus breaking Section 6 of the Mining and Minerals Act that requires mining license holders to support local suppliers.
Mwenefumbo accused the company of not utilizing local media outlets for procurement advertisements which prevented Malawian companies from entering mining project-related contracts. He pointed out that such violations break the country’s laws and create the possibility of community anger and political unrest in Karonga.
Mwenefumbo warned about the dangerous outcome of this trend because it strengthens community anger which causes operational disruptions and instability in Karonga district. National development through mining should act as a pathway but instead, foreign enterprises exploit Malawi’s resources to draw profit that blocks local businesses and communities from sharing in economic gains.
The official has demanded that the Ministry of Mining and the entire Malawian government put forth swift resolutions. Mwenefumbo demands authorities make Lotus Resources fulfil its responsibility by following Malawi’s procurement rules.
When the government does not take action foreign investors could learn that they can avoid local content policies which would lead to the exclusion of Malawian stakeholders in key economic activities.
The Ministry of Government should take immediate action to enforce Malawi’s laws upon all mining organizations doing business within the nation. The delay in addressing this issue will be interpreted by Malawians as government treason along with an economic sovereignty failure,” he declared.
The leader of NDP warned about unstable conditions in regional mining that could develop due to governmental inaction. He declared that strict implementation of local content laws must become mandatory because they should transfer mining advantages beyond international businesses to benefit Malawian community development and empowerment.
The unfolding revelations have caused an increasing amount of stress for the government to handle this situation timely. This issue may create significant effects on Malawi’s mining industry because it affects both how foreign investors deal with local populations and how well the nation applies its laws protecting local interests.
