Lotus, Karonga Council to meet over Kayerekera
Karonga District Council expects a community development agreement (CDA) with Lotus Resources Limited that will cover commercial benefits of the district to optimise economic benefits of the Kayerekera Uranium Mine in Karonga.
Karonga district commissioner Frank Mkandawire said the council will be meeting the company to discuss the CDA, but disclosed that the content of their proposal emanates from the district development that already sets development and investment priorities.
“We have priorities within the district development plan (DDP). We have just finalised that DDP so that will guide the CDA to ensure the aspirations of the people of Karonga,” said Mkandawire.
Lotus Resources Limited signed a mining development agreement on July 27, which provides for 0.45 percent of annual revenue to be ploughed back to the surrounding community through Corporate Social Responsibility programs.
However, Mkandawire said, among others, the CDA will ensure Lotus Resources prioritizes firms from Karonga on supplies and any businesses that will support operations of the mine.
Natural Resources Justice Network chairperson MacBowman Mtegha said they are representative organisation in Karonga that is part of the process until the CDA is signed.
He urged mining companies to ensure the CDA are well understood by the people around the mining areas.
Meanwhile, Lotus Resources is hopeful that the restart of Kayelekera Uranium Mine will breathe life into Karonga, which stands to benefit economically as the company aims to first offer jobs to people in the district unless there is skills gap.
As time draws closer to its re opening, this time by Lotus Resources which bought the mine from Paladin Africa, it is the people of Karonga that are expected to see the benefits first with a boost of economic activities in the district beyond the 500 jobs it will create, according to the company.
“If this mine will not change the lives of people around here then we shouldn’t be here,” said Lotus Resources Limited country manager Theo Keyter who met National Planning Commission (NPC) on their tour of the mine.
NPC director general Thomas Chataghalala Munthali said their visit was to check on the status of the mine ahead of its anticipated reopening following the signing of MDA.
He said the mine is important in the context of the development objectives under the Malawi 2063 as it falls on the pillars that hold the long-term aspirations.
Feasibility study figures showed that the mine will make around 95 million Australian dollars ($64 million) in the first year of production projected in 2025 before increasing revenue to 278 million Australian dollars ($187 million) in 2026 going forward, a significant forex injection into the country that would only be beaten by the whole tobacco industry.
Keyter said the company could not wait to reopen the mine pushing to be operational “as early as humanly possible” to recover expenses that the idle mine has consumed over the decade.
The definitive feasibility study report released in 2022 by Lotus Resources shows the Kayelekera mine has a low upfront capital requirement of $88 million.
“Lotus is planning significant improvements to Kayerekera, including the use of ore sorting, connection to the national grid, a new acid plant with associated co-generation plant and nanofiltration to improve acid recovery,” reads the report.
