Malawi uranium valued at K48 billion in 2012
A 2013 Malawi Government annual report has valued uranium total production at Malawi’s biggest mining investment, Kayelekera Uranium Mine, in Karonga at K47.75 billion.
“In 2012, the company produced 1,236 tonnes valued at $136.4 million equivalent of about K47.75 billion,” reads the annual report in part, prepared by Malawi’s Ministry of Economic Planning and Development.
According to the report, despite the economic slowdown that the country was undergoing in 2012, production of uranium concentrates during the year kept on increasing.
The revelation about uranium output and the corresponding value on the market last year ,comes barely few weeks after it was revealed that uranium output from Malawi’s sole uranium-producing mine, located in the northern district of Karonga, fell marginally in the first three months of 2013 from 350.3 tonnes to 345.6 tonnes.
The slight drop in production at the mine, which is operated by Australia-based Paladin Energy, was due to poor equipment availability and the rainy season hampering output.
“The Kayelekera Uranium Mine which was commissioned in 2009 has remained the largest mining investment in the country’s mining sector,” added the report.
The 3.3 million pounds Kayelekera project was officially inaugurated by former president, the late Bingu wa Mutharika, in 2009. Paladin owns 85 percent of the project, which cost around $200 million to develop.
The mine is operating under four components which are royalty, company tax, government equity in the project and specified benefits to the local community which is being provided by Paladin.
Commenting on the overview of mining and quarrying sector in 2012, the economic report says the sector experienced tremendous growth in the year 2012.
It says mineral production also increased as a result of continued demand by the consuming industries and the export market.
On coal production, the report says Mchenga, Kaziwiziwi and Eland Coal Mine Companies continued to be the sector’s largest producers of coal in Malawi, contributing to about 95 percent.
The three coal companies have a combined maximum capacity of up to 10 000 metric tonnes of production per month.
Malawi has over 22 million tonnes of proven coal reserves in a number of coal fields across the country and in general remains one of the most mined mineral in Malawi, according to the annual report.
In Malawi, coal is mainly used for provision of energy for different production processes in the cement, tobacco, textile, brewery, food processing and ethanol industries.
On employment, according to the sector, employment levels in the sector declined significantly in 2012.
“The decline was as a result of reduced produced of quarry aggregate which employs a large number of people.”
