Kayerekera Mine Violating Local Procurement Laws: Mwenefumbo Warns of Impending Crisis
National Development Party (NDP) President Frank Mwenefumbo has issued a stark warning over the operations of Lotus Resources PLC at Kayerekera Mine in Karonga, accusing the Australian firm of blatant disregard for Malawi’s mining laws.
Writing on his Facebook page, he has since called on the government to take immediate action, warning that failure to enforce compliance could lead to serious economic and social unrest in the mining district.
At the center of the controversy is Lotus Resources’ alleged violation of Section 6 of the Mining and Minerals Act, which mandates that mining license holders prioritize local suppliers for goods and services.
Mwenefumbo has revealed that the company has outsourced its procurement functions to a South African-based firm, effectively shutting out Malawian businesses from participating in the lucrative project.
He further criticized Lotus Resources for failing to advertise procurement opportunities in local media, depriving Malawian enterprises of a fair chance to compete.
“This is a dangerous precedent that could fuel community resentment, disrupt operations, and lead to instability in Karonga,” Mwenefumbo warned.
“Mining should be a vehicle for national development, but what we are witnessing is exploitation—where local businesses and communities are excluded from economic benefits while foreign firms enrich themselves at our expense.”
Mwenefumbo has challenged the Ministry of Mining and the Malawi Government to take urgent corrective action. He called on the authorities to hold Lotus Resources accountable and compel the company to adhere to the country’s procurement standards.
“Government must immediately intervene and ensure that all mining firms operating in Malawi respect our laws. If this is not addressed now, it will be seen as a betrayal of Malawians and a failure to protect our economic sovereignty,” he stated.
The NDP leader further warned that failure to act decisively could set a dangerous precedent for other foreign investors, who may follow Lotus Resources’ example and continue to sideline Malawians in critical sectors of the economy.
“The people of Karonga will not sit back and watch as their rightful opportunities are stolen from them. If the government fails to act, this could escalate into a serious crisis that may threaten the stability of the entire mining industry,” he cautioned.
Mwenefumbo’s statement adds to growing calls for stronger enforcement of local content policies to ensure that mining benefits extend beyond foreign investors and directly contribute to the economic empowerment of Malawians. As tension builds, all eyes are now on the government to see whether it will rise to the occasion or allow Kayerekera to become another symbol of lost national wealth.
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