First Kayelekera uranium shipment valued at $10 million

**By Mercy Matonga: **

Malawi is expected to benefit from the first shipment of uranium from Kayelekera Mine.

The uranium has been valued at approximately $10 million.

Malawi Chamber of Mines and Energy National Coordinator Grain Malunga told Business Times that the uranium, estimated at over 65,000 kilogrammes (kg), is estimated to be worth around $10 million (K17 billion).

“We are expecting employment of around 500 Malawians, with a multiplier effect of five times. Lotus has the obligation to secure the transportation of the uranium oxide. Safeguards are in place,” Malunga said.

Ministry of Mining spokesperson Tiyanjane Mambucha said government receipts arise through applicable taxes, royalties and other statutory payments.

She said the receipts may also include dividends payable in respect of government’s shareholding in the project, subject to relevant legal and commercial arrangements.

“Noteworthy, the government’s free-carried interest in the project is at 15 percent. Accordingly, the value of this particular consignment should not be interpreted as the amount that the government will directly receive from the sale,” Mambucha said.

She added that the ministry would continue working with relevant institutions, including the Ministry of Finance and the Malawi Revenue Authority, to ensure that applicable government revenues are properly assessed, accounted for and collected.

According to a statement published on its website, Lotus Resources Managing Director Greg Bittar said the first shipment, comprising four containers with approximately 145,000 pounds of uranium oxide concentrate (U3O8), had departed Kayelekera Mine for Walvis Bay.

“The successful dispatch of [the] product from Kayelekera is a pivotal moment for Lotus and is one of the final steps in delivering product to customers and beginning to generate revenue and cash flows.

“At the same time, we continue to focus on optimising Kayelekera operations and ramping up production,” Bittar said.

Kayelekera began open-cast mining in July 2008, with the Malawi Government holding a 15 percent equity stake, under a Mining Development Agreement, while Lotus Resources Limited holds the remaining 85 percent.