President Dr. Lazarus Chakwera has pledged that Malawi will reap greater benefits from the reopening of the Kayelekera Uranium Mine in Karonga, ensuring that proceeds from the project contribute meaningfully to national development.
Speaking on Tuesday during the mine’s inauguration, Chakwera noted that the site, which had been closed since 2014 after Paladin Africa suspended operations due to low uranium prices, will now be managed by Lotus Resources. He emphasised that the new ownership will avoid past mistakes.
“For a long time, the mine was underutilised and misused by politicians who denied us employment opportunities and infrastructure development. This time, under the new owners, this will not happen again,” Chakwera said.
The President attributed the mine’s revival to radical reforms in the mining sector aimed at sealing loopholes previously used to siphon government revenue.
“Some people deliberately ignore this government’s efforts to improve Malawians’ lives and spread misinformation. We have introduced mining development agreements and revitalised the industry to improve livelihoods,” he added.
Chakwera urged Lotus Resources to prioritise local development and create opportunities for surrounding communities as well as the nation.
“Since my first term, we have implemented various development projects. Together with my running mate, Vitumbiko Mumba, we are committed to even greater progress in the second term,” he said.
Lotus Resources Chief Operating Officer Mike de Costa disclosed that the government’s share of revenue from the mine exceeds 50 per cent, including a 15 per cent equity stake, 30 per cent corporate tax, 5 per cent royalty on gross revenue, and other taxes.
The mine’s reopening after over a decade of inactivity is expected to create up to 600 jobs, with 90 per cent reserved for Malawians. Under a Community Development Agreement, 0.45 per cent of total revenue will fund local projects, with Karonga suppliers given priority.
De Costa praised the government’s integrated approach linking mining with agriculture and tourism, describing these as key pillars for achieving the Malawi 2063 vision.
“The inauguration revitalises strategic mining activity, contributing to global clean energy, inclusivity of women and youth, and domestic recruitment enhancing Kayelekera’s economic impact,” he said.
Paramount Chief Kyungu of Karonga and Chitipa welcomed the reopening but urged the mine to deliver tangible benefits this time.
