BLANTYRE – An Australian firm on Friday inaugurated a 220-million-dollar uranium mine project in northern a Malawi, in a major boost to the impoverished country.
‘The mine will generate over US$150 million in export earnings per year,’ John Borshoff, managing director of Paladin Africa, said at a ribbon-cutting ceremony broadcast live on state radio.
Borshoff said the mine will produce about 1 500 tons of natural uranium oxide which is used to manufacture fuel for nuclear power stations.
Paladin Africa is a subsidiary of Paladin Energy of Australia.
Paladin owns an 85 per cent stake in the mine, while the government owns the rest. A 10-year development agreement for the project was inked in 2007 between Paladin and the southern African country.
‘We have entered a new era of economic development and transformation,’ President Bingu wa Mutharika said at the ceremony.
The mine outside of Karonga town will contribute 10 per cent of the gross national product.
‘The mine will also contribute 20 per cent of export earnings,’ Mutharika added.
Malawi currently depends on agriculture, especially tobacco, which accounts for about 70 per cent of foreign exchange earnings.
Mutharika said the mine would help develop the mining industry in Malawi, noting the country was also endowed with bauxite, emeralds and traces of diamonds.
Malawi has huge bauxite deposits on Mulanje Mountain in the south, but despite deepening poverty, has never made any serious attempts to mine it.
-Nampa-AFP
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