By Chisomo Phiri
Yamikani Jimusole, one of the few active accredited Gemologists in the private sector and Chief Executive Officer (CEO) of Yami Gemstone Lab & Exports (YAGLE), a local mining and mineral trading business in Malawi, has threatened to take legal action against the Ministry of Mining and the Malawi government over alleged incompetence, undervaluation of gemstones, and lack of seriousness.
Since 2021, Jimusole’s company has been trying to engage with the Ministry’s laboratory department to verify the quality of their gemstones, including rare rose quartz.
Despite numerous attempts, they have faced significant challenges.
In an effort to resolve the issue, Yami Gemstone Lab & Exports sent 63 samples to the laboratory, but only received two incomplete and substandard documents.
This has resulted in a significant loss of business and forced the company to close down due to lack of working capital.
Furthermore, the company invited the Ministry of Mining, in collaboration with the Malawi Revenue Authority(MRA) and Malawi Bureau of Standards(MBS), to assess and value their inventory in April.
However, it is now August, and they are yet to hear from them.
“This lack of seriousness and disregard for our business is unacceptable.
“We have tried to communicate with key stakeholders, including the Minister of Mining,Monica Changanamuno, her two Principal Secretaries, Dr. Joseph Mkandawire and Mr. Martin Kaluluma Phiri, directors, and other officials, but to no avail.
“We believe that the Ministry’s actions are not only incompetent but also malicious, and we will not hesitate to take legal action to protect our business and reputation,” he said.
Jimusole also highlighted the lack of expertise and infrastructure within the Ministry, saying:”Currently, the Ministry of Mining is the only or solo Gemological service provider in Malawi, although its laboratory is yet to be accredited.
“The Ministry’s solo accredited Gemologist, Mr. Rodrick Phiri, a graduate of the Asian Institute of Gemological Sciences, conducted laboratory tests, but his reports are substandard and fail to meet industry standards.”
Additionally, Jimusole pointed out that the Ministry lacks grading certification and appraisal systems.
“This means that Malawi continues to export its minerals without knowing their true market value, resulting in significant losses for local businesses and the economy,” he said.
Jimusole emphasized that gemstone and appraisal reports are supposed to meet minimum industry standards set by reputable associations like the International Colored Stone Association (ICA), Responsible Jewellery Council (RJC), and CIBJO, NAJA, just to name a few.
“It is unacceptable that the Ministry’s reports fail to meet these standards, further eroding trust in the industry,” he said.
Jimusole also disclosed that he expects its inventory to be valued in the millions of dollars, which will lead to the commercialization of their mining projects.
These projects have the potential to generate at least $1 billion annually in the near future.
“For a country facing forex shortages, we believed the ministry and government could have supported our efforts, but to no avail,” he said.
Jimusole drew parallels with Tanzania, which in 2017 under late President Magufuli imposed a ban on all gemstones exports for a few years while putting systems in place to protect the gemstone industry.
“Tanzania recognized the need to safeguard their industry and took bold action. Why can’t Malawi do the same?,” he said.
Jimusole wondered how the government can collect more revenue in the absence of proper Grading certification and appraisal systems, and when its own experts are undervaluing the gemstones.
He cited an example where in 2020, they sent 1.3 kgs of tourmaline samples to Columbia Gemhouse, which declared a value of $2500/kg.
Surprisingly, in 2022, Mr. Rodrick Phiri, the Ministry’s solo accredited Gemologist, valued superior quality tourmaline at $4/kg.
“This is a clear example of undervaluation, and it’s unacceptable.
“How can the government expect to collect fair revenue when its own experts are undervaluing the gemstones?,” Jimusole said.
In a separate issue, Jimusole highlighted the sale of a huge rock crystal by the Ministry of Mining in 2020, which was confiscated from Malawian and Chinese illegal miners.
The crystal was sold for below $3000, despite the then Minister, Rashid Gaffar, protesting that the stones could be worth over MK170 million.
“This is a clear case of undervaluation and lack of transparency.
“The government is losing millions of dollars in revenue due to its own incompetence and lack of expertise,” he said.
He said he will invite media houses to a press briefing where he will share evidence of the Ministry’s incompetence, including letters sent to key stakeholders, substandard gemstone and appraisal reports, and documentation of the company’s attempts to engage with the Ministry.
“I want to transparently share our experiences and the evidence we have gathered.
“We believe that the public has a right to know what is happening in the mining sector and how the Ministry is handling these critical issues,” Jimusole said.
He added:”As one of the few accredited Gemologists in Malawi and Africa, the country was supposed to be proud of its experts. Instead, we are being undermined and undervalued. I have vowed to lead by example and showcase the true potential of Malawi’s gemstone industry.”
With over 25 different types of gemstones discovered by YAGLE across Malawi, Jimusole is optimistic about the future.
“The future looks bright, and we are committed to developing the industry and creating opportunities for Malawians. We will not let the Ministry’s incompetence hold us back,” he said.
Jimusole’s determination and expertise have positioned YAGLE as a leader in the gemstone industry, and his efforts to promote Malawi’s gemstones globally are being recognized internationally.
Despite the challenges, Jimusole remains committed to his vision of developing Malawi’s gemstone industry and creating a positive impact on the economy and communities.
“We will continue to push for excellence and transparency, and we will not be silenced or deterred by the Ministry’s actions,” he said.
As a final warning, Jimusole has threatened that should the Ministry not respond within 7 days, he will be forced to seek an injunction stopping the Ministry of Mining from issuing gemstone export permits until proper grading certification and appraisal systems are put in place.
“We cannot continue to operate in an environment where our business is undervalued and undermined by the very authorities supposed to support us.
“We urge the Ministry and the government to take our case seriously and take immediate action to address our concerns and support the growth of the mining sector in Malawi.
“The good thing is that the Attorney General, Mr. Thabo Chakaka Nyirenda, is aware of our case, so it won’t come as a surprise,” Jimusole added.
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