African Minerals and Energy Holdings Limited, a Malawian-based exploration and mining firm, has confirmed the discovery of copper deposits at Bundi in Karonga District.

It has since said it plans to embark on large-scale copper mining and processing.

In a statement, African Minerals founder and managing director Lumbani Mbale said the discovery will deliver significant financial benefits to the company and the economy, at a time mining contribution to gross domestic product is at less than one percent.

He said the copper deposits have been discovered 60 kilometres from Karonga central business district.

Mbale said: “We can now confirm we have discovered a sizeable vein of a deposit of high grade copper ore in the Nyika Plateau after following some important geological information in the area. The development will make African Minerals the first company to open and operate a copper mine in Malawi once the operation starts.

“We will in the meantime finalise environmental and social impact studies and seek government’s approval to start mining. All we have now is an exploration licence, which government granted us recently.”

He also said the company will now embark on detailed drilling in the area to explore further deposits.

Mbale acknowledged that the Extractive Industry Transparency Initiative enjoins mining companies to be open and accountable in the management of oil, gas and mineral resources.

“It is in this spirit that we disclose this important discovery for the entire nation to know,” he said.

The statement further said the company intends to process the mineral and export it as a finished product to generate foreign exchange and create jobs.

To achieve this, the company said it will need support from the Malawi Government and the local community.

In his recent statement, President Lazarus Chakwera said the country’s mineral wealth can transform the whole economy.

He said the Malawi Government has issued over 250 mining licences, but expressed concern that the country has no proper mining industry or returns to speak of.

The current price of copper at the London Metal Exchange is around $8 500 (about K7 million) per tonne.

African Minerals was founded in 2017 and has mineral tenements in Nthalire (coal), Lufira (coal), Mpata (coal) and Bundi (copper and limestone), covering approximately 300 square kilometres.

The firm has controlling interests in African Energy and Power Limited (60 percent), African Rail Corporation (25 percent) and African Minerals and Energy Limited in Zambia.

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