By Chisomo Phiri
Yami Gemstone Lab and Exports (YAGLE), a Malawian gemstone mining company established in 2018, has faced significant challenges in its operations due to the absence of crucial systems in the industry.
In 2022, YAGLE exposed two critical issues: the lack of effective grading, certification, and appraisal systems, and the widespread undervaluation of gemstones.
The company received substandard gemstone and appraisal reports from the Ministry of Mining, which were later found to be inaccurate.
Despite the Ministry’s claims that it was their first time conducting such an exercise, they confidently proceeded with the results, leading to a loss of investor confidence.
The undervaluation of gemstones has resulted in significant revenue losses for both YAGLE and the Malawian government.
The accredited Gemologist,Rodrick Phiri, who conducted the valuation, undervalued YAGLE’s gemstones, leading to a loss of investors.
The investors had doubts about the true value of the gemstones, believing that YAGLE was exaggerating their potential worth.
This undervaluation has had severe consequences for YAGLE, including loss of investor confidence, reduced investments, stifled growth, and lost opportunities.
Furthermore, the lack of accurate valuation has hindered YAGLE’s ability to secure funding.
The company is currently in talks with the National Bank of Malawi(NBM) to secure a loan, but the bank is waiting for the asset documents, which are dependent on the Ministry’s valuation.
Despite these challenges, YAGLE believes its gemstone inventory has the potential to fetch millions of dollars on the international markets.
Moreover, the company is confident that once it conducts a thorough exploration of its mine assets utilizing latest technology such as airborne magnetic surveys and remote sensing, the resource estimates from its mines will be in the billions of dollars.
YAGLE currently holds three small-scale mining claims for aquamarine, rose quartz, milky quartz, and mica in Mzimba district, a potential ruby and gold deposit spanning 25,000 hectares in Mangochi, and a reserved mineral license, allowing YAGLE to purchase, hold, and sell over 25 different types of gemstones.
In an effort to resolve these issues amicably, YAGLE has attempted to engage with the Minister of Mining. Monica Changanamuno, and her two Principal Secretaries, Dr. Joseph Mkandawire and Martin Kaluluma Phiri.
Unfortunately, there has been little to no support from the Ministry, leaving YAGLE with limited options.
Recently, YAGLE requested the Ministry of Mining, in collaboration with the Malawi Revenue Authority (MRA) and Malawi Bureau of Standards(MBS), to assess and value their gemstones.
However, it has been over three months since the request was made, and YAGLE is still waiting for a response.
This delay has not only hindered YAGLE’s progress but also raised concerns about the effectiveness of the industry’s regulatory framework.
The lack of reliable systems, timely responses from authorities, and accurate valuations threatens the growth and development of the gemstone industry in Malawi.
Furthermore, the Export Development Fund (EDF), which started buying gemstones from Malawians in 2023, is also struggling with the absence of effective systems.
The root cause of this issue is the lack of accredited Gemologists and appraisers, which hinders companies like YAGLE from selling gemstones to the EDF and accessing the market.
This shortage of expertise prevents the accurate valuation and certification of gemstones, making it challenging for companies to secure funding and investment.
YAGLE is led by Yamikani Jimusole, an accredited Gemologist from the prestigious Gemological Institute of America (GIA) Thailand campus, with over a decade of experience in the gemstone industry.
Notably, Jimusole is the only GIA-trained Gemologist in Malawi and one of the few in Africa, bringing unparalleled expertise to the company.
Jimusole emphasized that if the government can develop and implement effective systems, the gemstone and jewelry industry in Malawi is capable of generating over $1 billion annually, which can replace the falling tobacco industry.
This statement highlights the immense potential of the gemstone industry in Malawi and the need for government support to unlock its full potential.
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