Australia-based exploration company, Lotus Resources Limited has finalised exploration at Chilumba and Livingstonia where the company intends to establish new uranium and rare earth mines.
In the $1.1 million drilling programme, the miner is also exploring uranium on Milanje Hills in Karonga District.
Lotus Resources Limited General Manager for Malawi Theo Keyter said the firm took samples which were inspected by the government and have been sent to South Africa for another assessment.
“The drawing programme is the first part of very long project and then there will be more exploration being done in the area because we want to see if it is viable to in that area. It is not a thing that you draw today and then tomorrow you start mining, a lot of work needs to be done,” Keyter said.
Minister of Mining Albert Mbawala said if the two mines at Kayelekera and Chilumba are opened, it would be a plus for Malawi.
“What we have now from Kayelekera it is ten years deposits but when they open to those areas, it will be another twenty years which is good for the country. We will be engaging the community in the said areas will be handled as they firm up on the deposits,” Mbawala said.
Recently, the company said since it rolled out its operations in the country 13 years ago Malawi has benefitted over K52 billion from the mine. This is money through corporate taxes, royalties and corporate social responsibility activities.
Some quarters have said the money is meagre consideration the worthiness of uranium.
Mining expert Paul Mvula from Church and Society of the Livingstonia Synod, said Malawi has been getting raw deals.
Mvula said it is high time the government would learn from past mistakes.
To bring sanity in the industry in 2021, president Lazarus Chakwera stamped an authority that the mining sector would become Malawi’s next big thing by among others establishing a state owned mining company.
The rationale was to among other capacitate Malawi to be able to test its own samples but also be able to go full swing into mining, the kite is yet to land.
Commenting on the progress made, Mbawala said the government is still mobilising resources.
The government needs about K5 billion for the mining company investment.