Malawi demands billions of dollars from US mining company

The Malawian government is demanding $309 billion in unpaid taxes and royalties from the US company Columbia Gem House for gemstones exported over the past decade.

Malawi's attorney general, Thabo Chakaka Nyirenda, said the country is also seeking $4 billion in unpaid revenue from French oil giant TotalEnergies, as well as $9.5 million from Turkish tobacco company Star Agritech .

The amount sought from the three agencies is reportedly nearly 300 times Malawi's national debt of about $1.2 billion. Last year, the country received a loan of about $178 million from the International Monetary Fund (IMF) amid an economic crisis .

The landlocked country is rich in minerals such as phosphates, coal, limestone, uranium, iron ore, and precious stones. However, official figures reveal that the mining sector contributes only 1% to Malawi's GDP. The government is targeting an increase of up to 10% by 2063 .

The US-based company Columbia Gem House has dismissed the claims, stating that the figures are flawed . The US Embassy in Malawi has made an attempt to resolve the dispute but was unsuccessful .

TotalEnergies reportedly declined to comment on allegations that it had failed to honor a 2001 agreement with Malawi to supply oil in exchange for tax incentives .

Star Agritech International (SAI), which is also accused by Malawian authorities of refusing to pay for three million tonnes of tobacco worth $15 million that it purchased from Malawi through three subsidiaries registered in Mauritius, Hong Kong, and South Africa in 2013, has also denied the allegations .