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  Malawi's artisanal gemstone miners struggle to improve income from local production


July 14, 2013


Bordered by Tanzania in the north, Mozambique in the south and Zambia in east, it would come as no surprise that the landlocked nation of Malawi is blessed with a wide variety of gemstone deposits. But, despite its natural wealth, it ranks among the world's most densely populated and least developed nations, with 53 percent of its citizens living below the poverty line. According to the International Fund for Agricultural Development, about 90 percent of Malawi's 16 million people live on $2 per day or less.

The most well-known gemstone mining operation is at Chimwadzulu Hill in the south central part of the country, and is from where the distinctive Nyala rubies and sapphires are produced. But almost all other gemstone mining in Malawi is artisanal, and for the most part it is seen by locals as a way of supplementing income. In this way, the country produces amethyst, aquamarine, beryl, garnets and gem-quality quartz.

There is in fact a lucrative trade in gemstones from Malawi, but only a fraction of the revenues derived from this business filters back to the local miners.

IRIN, a news service operated by the UN Office for the Coordination of Humanitarian Affairs, reports on a rose quartz mining operation in the northern Malawian town of Mzimba. Using basic tools, miners earn $1.50 a day extracting rough that they manage to sell for about $30 a ton. According to IRIN, a U.S.-based website is offering less than half a kilogram of rough rose quartz for $8.95, which translates into a value of $19,725 per ton.

Malawi's Mining Ministry considers small-scale mining as "one of the key sources of economic growth and poverty reduction." But the development of the sector faces a great many challenges, including cross-border smuggling, lack of investment, an absence of credit facilities and poor working conditions.

For its part the government says it is trying to formalize and regulate artisanal and small-scale mining, and assist "those with viable projects" with loans. Like its Southern African neighbors, it wants to promote downstream value-added industries, including jewelry manufacturing.

Financing a small-scale mining operation in Malawi costs between $400 and $650 per month. Added value in a rose quartz operation could be achieved simply by having a crusher to produce rose quartz powder, which can be sold at retail for more than $650 per kilogram.

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