Mining & Trade News

Assignment: Provision of transport and haulage services for the financial year 2024 to 2025   

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe.    

Assignment: Provision of painting, decoration works and signage services for the financial year 2024 to 2025  

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe.   

Assignment: Provision car rental services for the financial year 2024 to 2025  

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe.   

Assignment: Provision of stationery, event decoration services, accommodation and conference services for the financial year 2024 to 2025  

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe. 

Assignment: Supply and delivery of office furniture and fittings, firefighting, fire protection equipment including maintenance services for the financial year 2024 to 2025  

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe. 

Assignment: Supply and delivery of ICT equipment, hardware and building materials, motor vehicle tyres and batteries, outdoor advertising, air travel agency services for the financial year 2024 to 2025  

Client: National Construction Industry Council (NCIC)

Duration period: 12 months

Bidding procedure: National Competitive Bidding

Deadline: 13 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, National Construction Industry Council (NCIC) Lilongwe, Private Bag A146, Lilongwe.   

Assignment: Consultancy services for provision of detailed designs, tender documentation and supervision services for the construction of twenty storey capital hill twin towers office blocks

Client: Ministry of Transport and Public Works

Delivery Period: 26 weeks

Bidding procedure: National Competitive Bidding

Deadline: 29 November, 2023

Contact:  The Chairperson, Internal Procurement and Disposal Committee, Ministry of Transport and Public Works, Capital Hill, Private Bag B365, Lilongwe 3, Malawi.

Email: buildingdept@transport.gov.mw cc: dob_ipdc@transport.gov.mw   

Assignment: Provision of consultancy services for preparation of financial statements and audit file management for FY2020/2021, FY2021/2022 and FY2022/ 2023

Client:  National Oil Company Limited of Malawi (NOCMA)

Delivery Period: 3 months

Bidding procedure: National Competitive Bidding

Deadline: 1 December, 2023

Contact: The Chairperson, Internal Procurement and Disposal Committee, National Oil Company Limited of Malawi, NOCMA Board Room, Kang’ombe House, 4th Floor, East Wing, City Center, Lilongwe Malawi.

Assignment: Supply and delivery of motor vehicles

Client:  National Oil Company Limited of Malawi (NOCMA)

Delivery Period: 8 to 12 weeks

Bidding procedure: National Competitive Bidding

Deadline: 1 December, 2023

Contact: The Chairperson, Internal Procurement and Disposal Committee, National Oil Company Limited of Malawi, NOCMA Board Room, Kang’ombe House, 4th Floor, East Wing, City Center, Lilongwe Malawi.

Assignment: Supply and installation of six community based flood early warning systems  

Client: Department of Disaster Management Affairs  

Bidding procedure: National Competitive Bidding

Deadline: 11 December, 2023

Contact: Procurement and Disposal of Assets Unit, Department of Disaster Management Affairs, 2nd Floor Department of Economic Planning Building, Capital Hill Circle, Private Bag 336, Lilongwe 3 Malawi.     

Malawi’s power stability is expected to improve following the launch of the country’s first-ever Automatic Generation Control (AGC) system which is aimed at automating generation controls and boosting customer care services.

The United States Agency for International Development (USAID) funded Southern Africa Energy Programme (SAEP) to implement AGC whose end-users are Electricity Supply Corporation of Malawi (ESCOM) and Electricity Generation Company (EGENCO).

The AGC system adjusts the output of generating units in response to changes in the load demand and system conditions while also allocating load demand among available units in a cost-effective way.

This is achieved by adjusting the output of the generating units according to the changes in the load demand and the system conditions.

Speaking in Blantyre during the launching ceremony, a representative of ESCOM’s board chairperson, Jacob Muzalale, emphasized the significance of adopting the innovation saying the technology is vital as it allows the company to serve more customers easily as well as manage power supply and demand loads.

Muzalale said: “The launch is very important to us as ESCOM since one of our objectives is to provide a reliable supply of power, so reliability comes with a continuous supply of power to our customers. AGC is here to automate the process of communication between the supply and the demand including the management, and will go a long way whereby instead of manually calling technicians to increase or decrease the power supply the system will be done automatically hence improving power reliability.”

CEO for EGENCO Maxon Chitawo hinted that the new AGC system has been adopted to bring a balance between the power supply and load demand, frequency as well as power interchange with other systems.

Chitawo said; “The AGC is there to balance the power supply to the end users, we generate it in EGENCO then ESCOM takes it from us to transmit and distribute to the end users but within the system, there is variability in terms of loads through which they are deployed. Example one; a customer may switch on his maize mill while the other may be switching off so that causes an imbalance in the system in terms of frequency, so this AGC is there to control the frequency whereby when the load rises our generators should pick up and when it decreases our system should also produce less in line with the demand.”

“This is a good development as previously we were relying on making phone calls to give commands on the specified power to supply so it was inefficient. The motion has also rekindled the mutual working relationship with ESCOM as we both serve the same people.

“EGENCO is also set to introduce another system called the generation control monitoring system which will be used to measure water levels in all our hydro-generation sites so that we are always well-informed and make necessary adjustments.”

Previously, ESCOM managed generation control through its National Control Centre with EGENCO performing a similar task through its Generation Control Centre whereas local power plant operators do so through their generation sites using telephones.

Minister of Energy Ibrahim Matola expressed excitement with the development saying the innovation signifies the visionary leadership the country has to transform the economy through the creation of a robust energy sector as a pillar that holds productive sectors.

Matola said: “Initially, we were losing time as ESCOM used to wait for customers to call so that they are made aware of where the fault is but with AGC, the system will be able to reflect and detect all fault areas and have them rectified effectively therefore achieving optimum efficiency on time and resources.”

“So it is imperative that we experience such innovations in the energy sector as it is the pillar that holds all other productive sectors.”

The introduction of the AGC system is in line with ESCOM’s Integrated Strategic Plan for the period 2023 to 2027 launched in Lilongwe last week under the theme: ‘Driving value by building positive stakeholder relationships and partnerships.’

AGC also coordinates the economic dispatch of the generating units, which means allocating the load demand among the available units in the most cost-effective way.

The Sugarcane Growers Association of Malawi (SUGAM), which is the mother body of smallholder sugarcane farmers, has appealed to the Malawi Government to table the long awaited sugar industry bill in the national assembly

Robert John Dziwani, Chairperson for SUGAM said in a Press Statement that when enacted, the sugarcane industry law will help to bring sanity and fairness to the industry.

Dziwani said: “Malawi is the only sugar producing country in the Southern Africa Development Community (SADC) region that does not have any appropriate laws to govern the sugar industry.”

“This, in our informed and considered view is the cause of all problems that have dogged the industry since independence in 1964 and continues to disadvantage small sugarcane growers up to this date. “.

He revealed that in September 2023, several consultative meetings were held between growers, millers and the government but it is surprising that since then there has been a worrying silence from government on the progress of the tabling of the bill in parliament.

SUGAM was established in the year 2014 and was registered with the government of Malawi in 2018. The Association has over 7,200 registered growers drawn from Salima, Dwangwa, Nkhotakota and Chikwawa. Outgrowers grow sugarcane which is processed into sugar by sugar millers in Dwangwa , Chikwawa and Salima.       

Malawi’s Minister of Trade and Industry Sosten Gwengwe has expressed concern over the proliferation of substandard products that are being smuggled into the country.

The Minister expressed the concern when he visited Malawi Bureau of Standards (MBS) head office in Blantyre.

“Something has to be done to deal with dumping of substandard products in Malawi. Smuggling is dragging us behind in terms of having quality products in the country,” said Gwengwe.

The Minister said his coming to MBS was to have a high level engagement with Board Members and Management on how MBS can play a leading role in face-lifting the economy through robust boarder and internal quality monitoring controls.

He said his Ministry is prepared to support MBS and other relevant institutions and agencies in the National Quality Infrastructure (NQI) in combating smuggling and proliferation of counterfeit products on the market as they pose a serious setback to economic growth of the country.

In his remarks, MBS Director General Dr.Bernard Thole said MBS is implementing some programs and projects to ensure standardization and quality assurance services and enforce Metrology Act in the country to ensure consumer protection.

“MBS has a mandate to promote metrology, standardization and quality assurance of commodities and of the manufacture, production, processing or treatment thereof; and further to provide for matters incidental to, or connected with standardization,” Thole said.

Hospitality Group Blantyre Hotels Plc has announced that construction works for its Lilongwe Hotel are commencing this month at the Lilongwe Golf Club following finalization of an agreement by its special purpose vehicle Oasis Hospitality Limited and the main contractor for the project.

In a summary of interim consolidated and separate financial statements for the six months ended June 30, 2022, Blantyre Hotels Plc explains that the project is part of its growth strategy through expansion of its portfolio by having another hotel operation to its business in Lilongwe.

The statement says the construction site was chosen to target both international and local business travelers and tourists.

It says: “This growth strategy is in line with the vision of the country where tourism is listed as one of the priority areas in the national development agenda, Malawi 2063.”

“The City of Lilongwe was chosen because of its central location and linkages to various parts of the country for international visitors.”

“The upgrading of road infrastructure currently in progress in Lilongwe will enhance the business of the hotel.”

The hotel will be operated under a long term management agreement with a leading widely known luxury hotel management company Marriott International under the brand name Protea Hotel by Marriott, and the design brief is being developed in line with Marriott International standards.

In Malawi, the month of September was designated National Tourism Month to create awareness on tourism and its benefits to the local economy.

Commenting in a Press Statement on World Tourism Day which falls on September 27, Minister of Tourism, Culture and Wildlife Michael Usi says this year’s commemoration is being celebrated under the theme ‘Rethinking Tourism’ with focus on the recovery of the sector from the pandemic of covid-19.

Usi also says the theme presents a paradigm shift in tourism to ensure that the benefits of tourism are realized and enjoyed widely and fairly with a focus on the rural based tourism resources to create a more sustainable, inclusive and resilient sector.

He says: “In accordance with this theme and in line with the Domestic Tourism Marketing Strategy, I would like to take this opportunity to encourage fellow Malawians to utilize tourism facilities and attractions within our national boundaries.”

“You will be interested to note that as Malawians we have the capability to travel and spend within the country following the Malawi Domestic Tourism Survey Report by National Statistical Office in 2021.”

“This report indicated that Malawians on average account for nearly 94% of all outbound expenditures resulting from travelling from Malawi to other countries as compared to 6% for residents yet residents utilize our attractions more than we do.”

According to the report, 42% of Malawians travel to visit friends and relatives and only 1.9% travel for recreation.

Usi says now it is the time the country turned tables so that more people travelling to visit family and friends can also visit nearby attractions in their locations.

Tourism attraction centres help to create and sustain jobs and other related opportunities including improving livelihoods of local communities as there is support and maintenance of local services.

The sector is also a catalyst for attracting foreign exchange hence increasing domestic spending.  

Mchenga Coal Mine is scouting for strategic investors in the development of its 100MW Rukuru Coal Fired Power Plant, which is expected to be constructed close to the M1 Road in Rumphi within the vicinity of the coal mining site.

Mchenga Coal Mine GM Lincoln Bailey is quoted in the Malawi Investment and Trade Centre (MITC) Investment Projects Compendium Volume 4 as saying that they are seeking equity partners to invest in development of the plant which will comprise two power generating units (each with a rating capacity of 50 MW) fuelled by coal largely from the Mchenga Mine mixed with coals from other mines.  

Bailey explains that the project which is planned to supply power to the national grid will be executed in two phases, with the initial 100MW capacity representing the first phase of a targeted 250MW plant.

“Critical to the project’s success is the construction of the new Bwengu Substation, situated 65 kilometers south of the project site, adjacent to the M1 Road, and a 132kV outgoing transmission line linking the power plant to the new Bwengu Substation,” he says.

A feasibility study conducted by leading engineering consulting Fichtner indicates that the project can be effectively integrated into the national power grid, pending the negotiation and signing of a Power Purchase Agreement (PPA) with the Electricity Supply Corporation of Malawi (ESCOM).

Bailey says: “The CPL-Mchenga coal mining operations, a key supplier of coal for the Rukuru Power Plant, are situated in the Livingstonia Coalfield in Rumphi District, approximately 20 kilometers north of Mzuzu, Malawi’s northern capital. The power plant itself will be strategically positioned just 500 meters from Lake Malawi, making it a significant contributor to the region’s power needs.”

“The Rukuru Power Plant project aligns with the government’s objectives of economic development and energy security. Malawi currently grapples with a severe power deficit, hampering its economic growth and development. By supplying firm baseload power to the national grid, the Rukuru Power Plant aims to address these issues and meet the escalating demand for electricity in the country.”

“The project is not only economically viable but also promises numerous social benefits, including improved electricity supply reliability. It is poised to contribute substantially to the nation’s energy security, fostering a conducive environment for business growth and prosperity.”

He says in order to bridge the project’s funding gap, the project promoters are seeking a term loan of US$146.4 million while equity and strategic investors are also being courted to support the endeavor’s financial needs.”

Meanwhile, the Rukuru Power Plant project has already achieved significant milestones, including signing of a Memorandum of Understanding (MOU) with the Malawi government and an Engineering, Procurement, and Construction (EPC) Contract with Power Construction Corporation of China.

“Additionally, a Memorandum of Understanding and Power Purchase Agreement Term Sheet has been agreed upon with ESCOM,” says Bailey.

The project has undergone rigorous feasibility assessments, including a bankable feasibility study, financial model development, and an Environmental and Social Impact Assessment (ESIA). While a Partial Risk Guarantee from the African Development Bank (AfDB) was initially secured, it was later withdrawn due to pressure from the AfDB’s European and American funders who have imposed bans on coal-related funding.

The Rukuru Power Plant project demonstrates a promising Internal Rate of Return (IRR) of 10.2%, a Net Present Value (NPV) of US$27,893,761, and a Payback Period of 10.8 years.

In a related development, a locally registered firm Lone Star Energy is also scouting for investment partners to embark on the construction of a coal fired power generation plant in Rumphi district.

Listing on the Malawi Investment and Trade Center (MITC) investment projects compendium volume 4, the company is seeking a minimum investment of $90-million to fund the procurement and installation of a state-of-the-art power plant in the picturesque district of Rumphi.

MD for Lone Star Energy John Swira says the ambitious endeavor, which is poised to transform the energy landscape in Malawi, offers a unique opportunity for investors to engage in a low-risk venture with promising annual returns.

Swira explains that Lone Star Energy has already demonstrated its commitment by investing over $10-million to date and has received the green light from the Malawi government to conduct a comprehensive feasibility study.

He says: “The project has now reached a pivotal stage where it can extend its hand to new investors, offering them the prospect of owning a substantial share of Lone Star Energy Ltd, a Malawian registered company poised to revolutionize the energy sector in the region.”

“The ownership stake on offer ranges from 40% to 60%, providing investors with a significant influence on the company’s direction and future profitability.”

“One of the most significant beneficiaries of this venture will be the government of Malawi itself, as it has been earmarked as the primary buyer of the electricity generated by Lone Star Energy. This initiative is anticipated to address the acute shortage of electricity in the country, acting as a catalyst for economic growth across all sectors.”

There is need for Malawi to seize the opportunity to diversify its energy sources by, among other things, explore for oil and gas in the country’s East African Rift System whose potential for discovery of hydrocarbons has long been known.

This is contained in a keynote speech which was delivered by University of Malawi Vice Chancellor Sunduzwayo Madise at an Energy Symposium that was held at Bingu National Convention Centre in Lilongwe.

The symposium, which was held with the theme ‘Optimising Energy, Oil, and Gas Exploration and Production in Malawi,’ also marked the launch of the Centre for Strategic Studies by the Malawi Defence Force (MDF) in conjunction with Malawi University of Science and Technology (MUST) in collaboration with National Planning Commission.

The Centre will undertake strategic studies including geological studies that are crucial in fulfilling the Malawi 2063 Vision to transform into “An Inclusively Wealthy and Self-reliant Nation.”

Madise, however, called on all stakeholders in the extractive sector to tread cautiously and ensure that any exploration activity on Lake Malawi is guided by rigorous scientific analysis and adherence to environmental protection measures.

He said: “While exploration in other East African countries has yielded promising results, Malawi remains relatively unexplored.”

“However, we must tread cautiously, keeping in mind our commitment to environmental stewardship and the preservation of our natural heritage.”

“We must take a pragmatic and strategic approach to explore and develop our energy resources. As we venture into the potential of drilling in Lake Malawi, we are acutely aware of the environmental and ecological concerns.”

“This pristine ecosystem is home to a rich biodiversity and sustains the livelihoods of over 1.5 million people. The impact on local communities and heritage sites must be thoughtfully considered.”

Madise pointed out that Lake Malawi is one of the largest freshwater lakes in the world that presents the country with both opportunities and challenges.

He said the lake’s sanctuary of biodiversity, supports unique ecosystems and provides livelihoods for millions of Malawians.

Madise said: “Any exploration and drilling activities must be conducted with utmost care and adherence to stringent environmental standards.”

“We must prioritize onshore exploration and consider directional drilling as the first choice under the lake, mitigating potential risks and ensuring the protection of this invaluable resource.”

“However, as we embark on this journey, we must also manage expectations. Oil and gas exploration is a long and complex process that requires time, investment, and global market dynamics to align favorably.”

“While we may envision substantial wealth from our natural resources, we must remain grounded in the reality of the challenges and uncertainties that lie ahead.

“We must diversify our economy and strengthen other sectors while developing our energy resources sustainably.”

Madise also explained that in as far as optimization of energy, oil, and gas exploration and production is concerned, stakeholders must also address the broader context of national development agenda.

The country’s goal of becoming an inclusively wealthy and self-reliant industrialized upper-middle-income country by 2063 relies on the three inter-linked pillars of agriculture productivity and commercialization, industrialization, and urbanization where by energy infrastructure is a key enabler for the success of these pillars.

Madise said the country needs to explore innovative solutions, establish robust partnerships, and unlock the immense potential that lies within the nation.

He said the country has to foster an environment that attracts investment, encourages research and development, and promotes sustainable practices, to ensure that the energy sector becomes a catalyst for economic growth, job creation, and social development.

He said: “We must attract investment and create an enabling environment for businesses to participate in climate-related sectors and energy projects.”

“We therefore need bankable projects which can attract both foreign and domestic investment. The private sector will not invest in projects that are not sustainable or have no economic potential.”

“Development partners’ support will also play a pivotal role in bolstering our efforts to tackle climate change and adapt to its impacts. But let us be careful lest we dance to the tune of others.”

“Ultimately, our success will be measured not only by economic growth but also by the well-being and prosperity of our people and that we must prioritize social inclusivity, equitable distribution of resources, and environmental sustainability in every step we take.”

Meanwhile, Malawi has six vacant oil and gas exploration blocks in its Great East African Rift Geological Zone after original tenement holders relinquished licenses about three years ago.

Government is yet to advertise the blocks to new investors as it has been preoccupied with developing the legal frame work for oil and gas exploration and production including coming up with a new Petroleum and Production Policy, reviewing the Petroleum (Exploration and Production) Act 1983 and coming up with a model Petroleum Sharing Agreement.

Malawi’s leading hospitality group Sunbird Tourism plc. says it has registered a growth of 184% in profit in the first half of 2022 fiscal year, a positive signal attributed to an increased in tourism and travel activities in the country.

In the profit and loss statement co-signed by the Group’s Board Chairman Vilipo Munthali and Director Moureen Mbeye, sunbird boasts to have posted Mk400.2 million in profit after tax favourably to the loss of K475.8 million attained in the same period last year.

It has also recorded a 58% increase in total revenue in the first half as at June 2022 total revenue amounted to K10.0 billion which is higher than prior year’s first half revenue of K6.4 billion.

Sunbird hails the corporate segment as the highest contributor with 82% of the rooms sold and it continues to be the anchor segment for the business.

“The segment is expected to remain the key driver for the business in the second half of the year. Efforts to grow other segments with focus on domestic leisure are in place, despite the challenges associated with the cost of living due to the prevailing economic environment that has direct impact on the price sensitive segment,” it says.

The company also says the increase in business levels has had a positive impact on the profitability despite the sharp increase in operating costs.

It says: “Sunbird half year performance indicates that the tourism industry is positively recovering from the heavy impact of pandemic and confidence in hospitality and travel has returned both at national and international level. However, the lakeshore ban for government meetings and conferences in the resorts has negatively affected the growth and performance of the industry.”

“Despite the recovery disruption, the positive trajectory due to increase in tourism and travel activities is expected to continue to the year-end, and key is the increasing of routes by Malawian Airlines and anticipated resumption of other airlines which will help with opening up Malawi further for international arrivals.”

Despite acknowledging that the recovery of tourism has gathered pace in many parts of the world, the company also points out weathering challenges constraining business operations including the Covid-19 pandemic as well as Russia-Ukraine war which has disrupted global supply chain leading to price increase of vital commodities.

Meanwhile, the company is still optimistic to record a significant profit in the second half of the year as it is implementing a number of key product improvement plans across the country including unveiling of a new Lake View Restaurant at Sunbird Livingstonia in May 2022, and phase one of soft refurbishment of Sunbird Ku Chawe and Mzuzu is underway.

“The Board is focused on building a resilient brand by improving service delivery and guest experience through implementation of the 5-year strategic plan to ensure that the company maintains its market leadership in the hospitality industry.”

A locally registered firm Why Limestone Mining is looking for potential partners to invest a minimum of $200,000 to enhance productivity of a lime plant in the district of Karonga in northern Malawi.

In a Malawi Projects Investment Compendium Volume 4 published by the Malawi Investment and Trade Centre (MITC), MD for the Company John Swira says that the opportunity being offered has the capacity of generating more benefits and is a low risk investment.

“The current developers have invested over $800,000 to date, have installed production machinery and have ran batches of lime productions successfully,” says Swira.

He explains that the business process has brought the project to the point where it is possible to offer additional new investors the following benefits: 60% to 90% shareholding in Why Limestone Limited, a company which has a capacity of production of lime of 200 tones per month.

He says what is required for the project is financiers or equity partners who can inject money in order for the business to reach its full potential, or acquisition of the business is possible.

The project which is located in Northern part of Malawi in Karonga District, currently operational, already carried pre-feasibility studies, feasibility studies and other studies.   

Mining in Malawi is an under-explored activity accounting for about 1% of Gross Domestic Product (GDP) but it holds a great potential to develop Malawi’s economy and attract a great deal of investors.

According to the Geological Survey Department, an airborne geophysical survey conducted in 2015 revealed an abundance of mineral deposits including rare earth minerals, bauxite, uranium, graphite, vermiculite coal, gemstones, alluvial gold, monazite, limestone, phosphate, pyrite, glass sands, dimension stone and titanium heavy bearing mineral sands.

Formal mining activities are happening for coal, and lime while gemstones are extracted by small-scale miners.

In order to cultivate and sustain a conducive environment for growth of investments in the sector, the Government of Malawi reviewed and endorsed the Mines and Minerals Act of 2023.

The Government grants duty free and VAT free importation of mining equipment to investors in the mining sector.

In order to access the incentives, an investor is required to obtain a mining license from the Ministry of Mining.

Furthermore, the Department of Geological Survey set up a geo-data management platform to ease information access by investors and other stakeholders.