Malawi Uranium Mine Signs Deal to Share Revenue with Communities
Lotus Africa Limited General Manager Theo Keyter emphasised that qualified communities would have autonomy in deciding how to use the funds.
KARONGA, Malawi— Lotus Africa Limited signed an agreement Monday to share mining revenues with communities near its Kayelekera uranium mine, marking a key step toward resuming operations at the northern Malawi facility, writes Victor Musongole.
The mining company committed to channelling 0.45% of annual revenue sales to development projects in communities within 20 kilometres of the mine site, spanning both Karonga and Chitipa districts.
"For our mining industry to be meaningful, the community must benefit from the resources," said Paramount Chief Kyungu at the signing ceremony held at Karonga Museum Amphitheatre.
He added that local chiefs would monitor mining activities.
Lotus Africa Limited General Manager Theo Keyter emphasised that qualified communities would have autonomy in deciding how to use the funds.
"We will not dictate" development priorities, he said.
The mine, which operated from 2007 to 2014 under previous owner Paladin Africa, is set to employ 444 Malawians, representing 85% of its total workforce. Lotus Resources Ltd. owns an 85% stake in the operation, with the Malawi government holding the remaining 15%.
Joseph Chirwa, regional engineer for the mining ministry, said officials are working to place mining experts in district councils to provide technical oversight of operations.
The agreement follows July's signing of mining development agreements between the Ministry of Mining and Lotus Resources Limited.
The original mine closure in 2014 was attributed to declining global uranium prices.