Australia-based exploration company, Lotus Resources Limited, which recently acquired Kayelekera Uranium Mine, has bought stakes in Livingstonia Uranium Project from a local entity at $25,000 [about K20 million].
This is according to a press statement published by the mining company Thursday.
This comes at a time the government renewed the firm’s exploration and mining licence for the Kayelekera Uranium Mine last month.
The company plans to commence an exploration programme at the site as results of its survey show that mineralisation continues.
The Livingstonia Project is located in Northern Malawi, approximately 90 kilometres from the Kayelekera Mine.
Lotus Managing Director Keith Bowes said in the statement that the move that has the potential to increase their global mineral resource by 16 percent.
“Assuming exploration success, the company will undertake ore-sorting test work on the Livingstonia material in 2022 as part of the process for determining whether Livingstonia could become a future satellite operation for the company,” Bowes said.
Ministry of Mining Principal Secretary Joseph Mkandawire confirmed the development in an interview.
“We have given an exploration licence to Lotus to do detailed exploration in the Livingstonia area and we will be able to know whether we have new uranium deposits apart from Kayelekera,” Mkandawire said.
Reacting to the development, Natural Resources Justice Network Chairperson Kossam Munthali said Malawians were yet to benefit from such deals.
“The few reforms being tackled by the government are not tackling the real issues of development.
“Malawians are yet to start reaping the benefits from the minerals that are within their backyards; the models that are being used are not for Malawians to benefit. There’s a lot needed to be done, particularly when we talk about large-scale mining,” Munthali said.
Earlier this year, President Lazarus Chakwera bemoaned slow strides made in the mining industry.