Paladin Africa Limited is the licence holder of the mining project at Kayelekera and will be mining uranium at the site producing about 1,000 tonnes of uranium oxide each year worth about K14 billion (US$100 million) at current price.
During the ceremony President Mutharika disclosed that the mining venture would add 10% to Malawi's Gross Domestic Product (GDP).
“Since the project will also add 20% of the country's export earnings, this is one major reason why the establishment of the mine by Paladin should be applauded,” said Mutharika.
“This mining activity will put Malawi on the world map of uranium mining activities and will in the end boost the economy of the country,” said Australian-based Paladin Africa Limited managing director, John Borshoff.
According to Borshoff, the US$200 million capital cost of the project could generate between US$150 million and US$180 million a year, depending on the price of uranium.
The project has created over 1000 jobs during this construction phase and more than 200 permanent jobs will be available in the operations phase, besides the employment of contractors.
