Malawi’s mining expert bemoans scrap metal exports
December 29, 2023
Written by By Christopher Jimu- Mining Review Malawi![Malawi’s mining expert bemoans scrap metal exports](/_next/image?url=https%3A%2F%2Futfs.io%2Ff%2F94e64aa4-ee5b-40ec-9304-aec82f42ce2b-oeokjo.jpg&w=3840&q=75)
Mining expert and former Minister of Mining Grain Malunga has called on government to promote recycling of scrap metals locally other than allowing people to export the metal.
Malunga observed in an interview that the exported scrap metals are the ones used to make iron bars and other metal components which the country purchases at a very higher price.
“We need to put things in order and see where we can generate more money and even jobs. By exporting the metals we are killing ourselves twice. You sell the metals cheaply and buy iron bars at a very exorbitant price. I think we can do better on this since we are not producers of iron materials,” said Malunga.
When put to him that government has been trying its best to put in place a ban on scrap metal exports, Malunga said the bans do not yield anything because they are always temporary
“The authorities must treat this issue with the utmost seriousness it deserves. We do not need temporary bans because it leads to the buyers circumventing the system and continuing trading in metals for copper, iron and aluminium production,” said Malunga.
When contacted for comment, Trade and Industry Minister Sosten Gwengwe disclosed that there are new procedures on the issue which government put in place but he could not divulge a lot as he was not in office.
“Let us talk after the holidays, but there are new procedures in place,” said Gwengwe.
Meanwhile, the emergence of scrap metal buyers on the local market is said to be one of the reasons some car breakers are now leaving the business as they are unable to compete with scrap metal exporters on the market
The scrap metal buyers are targeting old or accident damaged vehicles for breaking and then exporting the parts for recycling in China.
When car breakers purchase an old or accident damaged vehicle they dismantle the car and sell part by part while scrap metal buyers just sell the whole car in one piece for chiseling before exporting.
Mining and Trade Review investigations indicate that the trade of buying damaged or old vehicles is now even being done by foreigners with more money a thing which has automatically lead to soaring prices.
Lilongwe based veteran car breaker John Nkisi of MJ Multitraders claimed that the growing demand for scrap metal in countries such as China, has distorted car breaking business.
“We used to buy old or accident damaged vehicles at low prices but the story is different. If we identify a vehicle to buy we are outbid by scrap metal buyers. In the end some car breakers are closing shop due to stiff competition,” said Nkisi.
As a way of survival Nkisi is now diversifying his business by investing in agriculture because he claims that the future of car breaking is gloomy.
“It could have been good if more investors were allowed into mining of precious metals used to make aluminium and steel. By doing this the country could be getting enough forex while creating sustainable jobs instead of exporting metals bought on the market cheaply,” Nkisi said.
Nkisi also urged his fellow car breakers to look into the issue of forming an association seriously so that they can be speaking with one voice.
“An association for car breakers will help us speak with one voice and easily lobby with authorities on how they can protect us. We are of the view that businesses which can be done by Malawians must be left in the hands of Malawians.
An association can help them have a strong voice for lobbying and dealing with issues including that of foreigners dominating the trade and export of metals with ease.
“If we sell car components bit by bit, we can make a lot of money because these scrap metal buyers get the stuff cheaply. Imagine a kilogramme going at K200, and when processed into bars we pay as high K6000 per kilogramme, this is sad,” said Nkisi.