Chances are low that the Government of Malawi, through Attorney General (AG) Thabo Chakaka Nyirenda, may sign mining development agreements (MDAs) for Lotus Resources and Mkango Resources Limited this month, with the AG insisting that he is not ready to sign the agreements.
Government signed the MDA for Globe Metals
“There are issues the three parties are yet to agree on. An agreement reflects what parties discussed and mutually agreed” said Nyirenda.
He added that with this two companies (Lotus Resources and Mkango Resources Limited), they haven’t reached an agreement yet. There is a need for patience and perseverance in order to achieve the desired results. They also need to avoid repeating past mistakes.
Nyirenda concluded that the negotiators will make sure that they counter-balance between the needs of Malawi, as the host state, and interests of the companies, as investors. The MDAs should contain provisions that strive to ensure that these companies and their investment shall endeavor to achieve the highest possible level of contribution to the sustainable development of Malawi and the local community before the agreement are signed.
Committee chairperson of the Parliamentary Committee on Natural Resources and Climate Change Welani Chilenga on Sunday sided with Nyirenda on the issue, saying there is a need for government to tread carefully on the issue before signing the MDAs.
Chilenga said otherwise, them, as committee, have heard that some of these companies are making unrealistic demands.
