Grain Malunga, the National Coordinator of the Malawi Chambers of Mines, has urged the government to utilize local experts in negotiating Mining Development Agreements (MDAs).

Malunga made these remarks during a webinar on "Mining Development Agreements: Creating a Win-Win for the Investor and Government," organized by Perekezi ASM Consultants.

Perekezi ASM Consultants and Events, with support from the United States Agency for International Development (USAID) under the Powering a Just Energy Transition Minerals Challenge (JET Minerals Challenge), is implementing the Empowering Stakeholders: Driving Just Resource Governance through Open Contracting and Licensing Project.

The project seeks to counter transnational corruption in green energy transition minerals and promote transparency and accountability in the mining sector

During the webinar, Malunga highlighted the critical role MDAs play in the mining sector.

"A mining development agreement is a contract between the government and a mining company, governing the exploitation of mineral resources in accordance with existing laws," he explained.

"These agreements ensure equitable benefit sharing, environmental protection, and community welfare."

Malunga stressed that MDAs go beyond the scope of standard mining licenses and exploration rights citing they are designed to protect both the investors and the government, addressing fiscal regimes, guiding restrictions, and safeguarding against expropriation and nationalization.

"It is essential to create a win-win situation where the mining company secures a return on investment from exploration to the end of the mine's life, while the government maintains a steady income flow," he said.

He also emphasized the importance of adhering to Malawi's legal framework in the formulation of MDAs.

These agreements must comply with the Constitution, environmental management acts, and the Mines and Minerals Act of 2023.

Additionally, they must consider the Ranch Act and the National Agricultural Policy to protect community rights and ensure sustainable development.

Malunga pointed out the need for MDAs to address community and environmental concerns, including land ownership issues, compensation for landowners, and water resource management.

"The agreements must ensure that mining activities do not infringe on local communities' rights and maintain environmental sustainability," he added.

Chikomeni Manda, Director of Perekezi ASM Consultants and host of the webinar, echoed Malunga's sentiments.

"Involving local experts in these negotiations is crucial," Manda stated.

"They bring invaluable insights and understanding of the local context, which is essential for drafting agreements that are fair and beneficial to both the investors and the Malawian people."

The webinar, supported by USAID, brought together industry experts and stakeholders to discuss best practices and strategies for creating effective and equitable MDAs.