* 30% will come from corporate tax, 5% royalty on gross revenue, and other taxes as President Chakwera vows Malawi will benefit more from Kayelekera Mine
* For a long time, the mine was underutilised and misused by politicians who denied us employment opportunities and infrastructure development
By George Mponda, MANA
Lotus Resources Chief Operating Officer, Mike de Costa, highlights that Malawi Government’s share of revenue from Kayelekera Uranium Mine in Karonga exceeds 50% — including a 15% equity stake, 30% corporate tax, 5% royalty on gross revenue, and other taxes.
Mike de Costa
He unpacked this yesterday when President Lazarus Chakwera presided over the reopening of the mine — which ceased its operations since 2014 under management of another Australian investor, Paladin Africa due to what was reported to be low uranium prices.
De Costa added that the mine’s reopening, after more than a decade of inactivity, is expected to create up to 600 jobs, with 90% allocated to Malawians.
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Additionally, a Community Development Agreement allocates 0.45% of total revenue to local projects, and local suppliers from Karonga are prioritised.
He commended government’s integrated approach linking mining with agriculture and tourism, pillars essential to achieving the MW2063 national 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,” De Costa said.
The Malawi Government holds a 15% equity stake, while Lotus Resources Limited owns 85% and on his part, President Chakwera pledged that Malawi will reap greater benefits from Kayelekera’s reopening by ensuring the project’s proceeds contribute meaningfully to national development — while emphasising that the new management under Lotus Resources should 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,” said the President, who attributed the revival to radical reforms in the mining sector that have eliminated loopholes previously exploited to siphon money from the government.
“Some people deliberately ignore the efforts of this government to improve Malawians’ lives and spread misinformation. We have introduced mining development agreements and revitalised the industry to improve livelihoods.”
Chakwera urged Lotus Resources to develop Karonga through the mine and create opportunities for local communities and 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.
Present was Paramount Chief Kyungu of Karonga and Chitipa, who welcomed the reopening, urging the company to deliver tangible benefits this time.
“We hope the community agreement is a living document that benefits Malawians,” he said. “Previously, our people were exploited, but now we expect long-term production and job creation.”
Kyungu stressed the need for skilled Malawians in the mine’s management and called for safeguarding the investment for future generations.
Kayekera mine will initially rely on diesel power until connection to the national grid is completed.—Edited by Maravi Express
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