Kayelekera Uranium Mine in Karonga officially resumed operations yesterday with production projected at 2.4 million pounds at full operation annually and earn the economy between $160 million (about K278 billion) and $190 million (about K330 billion).
Speaking during the official commissioning in Karonga yesterday, President Lazarus Chakwera warned politicians against meddling in the affairs of the mining venture, further indicating that safeguards have been put in place to tame that.
He said: “We have changed the mining law and things will no longer be the same. My government has created a mining company, Mining Regulatory Authority and we have ensured that we have progressive Mine Development Agreements.
“I don’t want politicians to meddle in the affairs of mining and Lotus, you have just started, don’t sleep. I don’t want to see our resources being smuggled out of Malawi, I want jobs being created, but also social corporate responsibility.”
The President also took a swipe at previous administrations for purportedly lacking seriousness in managing resources from the mine, which saw a few individuals benefiting, leading to the closure of the mine in 2014.
He said: “Komanso zoti mgodi umenewu unasokonozedwa ndi anthu andale mpaka kufika potsekedwa, chinali chibwana chachikulu. Chibwana choterechi nchimene chinatilanda mwayi opeza forex kudzera mgodi umeneu.
“Chibwana choterechi nchimene chinatilanda mwayi olemba achinyamata ntchito pa mgodi umeneu. Chibwana choterechi nchimene chinatilanda mwayi omangila miseu, zipatala, masukulu, mabiriji, ndi mafakitale kuchokera mundalama zobwere. [Politicians failed this mine, leading to its closure shows lack of seriousness. It is this lack of seriousness that robbed the country of forex from the mine, youths were robbed of job opportunities, resources for construction of roads, hospitals, schools, bridges and factories].”
Records show that Kayelekera Uranium Mine, whose open cast mining started in July 2008, closed for “care and maintenance” in 2014 when Paladin Africa, the former owners, suspended operations due to low uranium price. The Malawi Government held a 15 percent equity stake in the mine acquired through a Mining Development Agreement (MDA) while Lotus Resources Limited, an Australian company, had 85 percent.
In an interview on the sidelines of the commissioning, Lotus Resources Limited chief operation officer Mike Da Costa said that Malawi is expected to earn 50 percent of the total direct economic benefits and financial returns.
According to him, they are currently in the process of commissioning the processing plant and expect the first production by end of September.
Minister of Mining Ken Zikhale Ng’oma said government has put in place safeguards to tame leakage of resources.
Lotus signed the CDA where, as per Section 164 of the Mines and Minerals Act (MMA 2023), it will be providing 0.45 percent of its annual gross sales to the local community.
On his part, Paramount Chief Kyungu of Karonga and Chitipa urged the government and Lotus Resources Limited to ensure that the CDA is respected.
