Vice-President Michael Usi has ordered the immediate suspension of all mining licenses in Malawi and demanded a thorough review of existing contracts amid concerns over undervalued gemstone exports that are costing the government millions in lost revenue.
The move follows revelations that large quantities of precious gemstones are being exported at suspiciously low prices. During a high-level meeting on Tuesday, it was noted that 5,700 kg of gemstones were sold for just K2 million, while another 20,000 kg fetched only K15 million raising serious concerns about potential revenue losses.
In response, Usi summoned officials from the Ministry of Mining, the Mines Regulatory Authority, and the Ministry of Trade to a crisis meeting at Capital Hill today. He has given them 21 days to conduct a full audit of all existing mining contracts and present their findings.
The decision comes after discussions between the Vice President, the Minister of Finance, the Minister of Trade, and officials from the Malawi Revenue Authority and the Reserve Bank of Malawi.
Minister of Mining Zikhale Ng’oma is expected to provide further details on the government’s next steps.
