The Natural Resources Justice Network – NRJN has described a move by government to establish a National Mining Investment and Development Company as questionable.
On Friday, President Peter Mutharika told the National Assembly that his government has established the Company to champion investment in the mining sector.
But reacting to the development, the network’s Chairperson Kossam Jomo Munthali says the establishment of the said Mining Company has no legal backing since parliament never approved.
“As a country we don’t have any enabling law that has really necessitated to the establishment of that Company, any enterprise of that magnitude, my expectation was that we needed to have a law that mandates the establishment of this institution,” wondered Munthali.
He said it unfortunate that government has rushed to establish the Company without critically analysing guiding laws in the mining sectors.
“I feel that this institution, while it is important, but going back on the drawing board for the country we have more issues that are to do with vested interest,” Munthali said.
“There are issues to do with enabling laws, the act that we have does not even protect and support the interest of locals.”
In addition, President Mutharika reported that government is in the process of establishing a Malawi Mining Regulatory Authority which will regulate the mining sector.
Meanwhile, government says it has successfully implemented the Geological Mapping and Mineral Assessment Program in order to unveil the country’s true mineral potential.