By Chisomo Phiri
An accredited gemologist and founder of Yami Gemstone Lab and Exports, Yamikani Jimusole,has expressed support for the ban of the minerals exportation announced by the Ministry of Mining, calling it a long-overdue step toward reforming the sector but warns that the government’s approach could lead to unintended consequences if not handled carefully.Â
He said in an interview with 247 Malawi News:“For the past Seven years, we have been advocating for improved valuation systems and transparency in the gemstone sector.
“The ban is a step in the right direction, but it must be followed by concrete actions to reform the sector.”Â
Jimusole, who is also a small-scale miner, highlighted the challenges faced by miners due to the lack of a proper valuation system.
“Mining is capital-intensive, but gemstone prices have been very low for years.
“You spend millions and millions on exploration and production, yet middlemen want to buy gemstones for less than the production costs.This is unsustainable and discourages investment in the sector,” he said.
The geologist emphasized the need for a clear distinction between formal and informal markets to ensure fair pricing and protect miners from exploitation.
He explained:“The informal market is dominated by middlemen who exploit miners, while the formal market lacks transparency and proper valuation systems.This has to change if we want the sector to grow.”
Jimusole also revealed that he has been unable to sell any gemstones since 2018 due to the lack of a proper valuation system, despite incurring significant costs for warehouse storage and labor.
“It is disheartening to invest so much and get nothing in return.The government must act now to address these challenges,” he said.
Jimusole cautioned that prices for various gemstones could increase once the ban is lifted, potentially causing more chaos.
“If the government imposes higher prices without proper consultation and market exposure, it could backfire.
“Buyers may reject the new prices, leading to unsold inventory and financial losses for miners and traders,” he said.
To avoid this, the geologist suggested that the government collaborate with miners and dealers to visit select world-class gem shows and gemstone mining companies in neighboring countries.
“We need to see how our friends are doing it.By learning from their experiences, we can develop a pricing system that is fair, transparent, and acceptable to all stakeholders,” he said.
Jimusole also emphasized the need for the government, through the Export Development Fund (EDF) and Makawi Mining Company (MAMICO), to provide ready markets for miners and dealers.
“Even though EDF started buying gemstones in 2023, it is only purchasing a select few types of gemstones at low prices.
“This calls for a review to ensure that all gemstones are fairly valued and that miners receive fair compensation,” he concluded.
