Government reviewing Mines and Minerals Act—APM
President Peter Mutharika says government is reviewing the Mines and Minerals Act of 1981 and the Petroleum Act of 1983 to improve the legal environment for the mining industry.
The review of the laws is part of the Malawi Mining Governance and Growth Support Project being supported by the European Union with a loan from the World Bank.
In his State of the Nation Address during the opening of the Third Meeting of the 47th Session of Parliament in Lilongwe on Friday, the President said government hopes to enhance the development of the mining sector and increase its benefits to the people.
He said: “In recognition of the huge potential the mining sector has on the country’s economic growth and development, government is implementing a number of activities aimed at increasing investments in the sector.”
Some of the implemented activities include capacity building in mining contract negotiation and development of modern mining agreements.
The President said the capacity building is meant to ensure that the country enters into mining agreements that are balanced, equitable, fair and beneficial to the people.
He said government has also adopted a regionally competitive Mining Fiscal Regime.
In the 2017/18 National Budget Statement, Minister of Finance, Economic Planning and Development Goodall Gondwe said the Mining Fiscal Regime will outline all tax incentives, details for claiming depreciation allowances and determination of assessable income, thereby promoting transparency and accountability.
Relevant laws to facilitate the review of the Acts are expected to be tabled during this meeting of Parliament.
In July 2015, the Ministry of Natural Resources, Energy and Mining held consultative meetings to solicit views towards the reformation of the minerals legislations which is outdated.
