The Reserve Bank of Malawi (RBM)—which says it has so far bought 540 kilogrammes (kg) of local gold valued at $70 million (about K123 billion)— is targeting to purify the mineral as part of the country’s official reserves.
RBM spokesperson Boston Banda said in a written response
yesterday that the central bank is looking for plants within southern Africa to turn the product into monetary gold.
Asked how the bank will take out the gold for purification when Pres i d ent Peter Mutharika banned exportation of raw minerals, he said they are “exploring options”.
Banda said in a Whatsapp message response: “We do not know of a gold refinery that would purify the purchased gold to monetary gold standard.
options. | Nation
“Meanwhile, we are exploring refining options within the region as we have hit the half-tonne mark,” he said.
According to Banda, the stock would fetch between $60 and $70 million at current global market prices.
Asked if processing the gold outside the country would be in conflict with the President’s directive, he said: “We will proceed within the current presidential directive should we decide to export.
“Our current stock is of assayed gold in bars processed at around 95 percent purity level. Ordinarily, unprocessed alluvial gold would fetch much less than processed gold.”
Mining and Minerals Regu lator y Authori t y (MMRA) has said it receives reports from the Export Development Fund (EDF), which buys gold on the bank’s behalf and confirmed that there
were more than 500 kg of gold, but could be more if it were not for the proliferation of illegal mining.
MMRA director general Samuel Sakhuta said the authority is struggling to curb illegal mining because it is a complex matter, especially because some miners shun licences.
But he said if miners can have licences, they would be selling the gold to established markets, which will make it easier for authorities to track proceeds and maximise returns for the country.
“Without that, we can’t know. Most of the [illegal] miners found at the sites are just workers. There are big people behind them that hide. But there is government, no matter how long it might take, they will be caught,” said Sakhuta.
He added that the authority’s officers sometimes receive death threats when they want to visit some illegal mining sites and called for collaboration to curb illegal mining.
Mining expert Paul Mvula applauded RBM for buying gold from small-scale miners, but said the central bank could have bought more if illegal mining was curbed.
He said: “It is an area that we are losing a lot. 540 kg is good, but we could have bought more if we curbed illegal mining.”
Gold is mined in several districts in Malawi, including Lilongwe, Kasungu, Mangochi, Machinga, Nkhotakota, Ntcheu, Nsanje and Nkhata Bay.
Section 28 (b) of the Reserve Bank of Malawi Act gives power to the bank to “purchase and sell gold”.
