An Australian mining firm said on Thursday it had received a licence to construct a $185-million project to mine uranium in northern Malawi.
The project, hailed as Malawi’s biggest investment to date, had been delayed by an an environmental impact assessment, with rights groups arguing the project could be environmentally hazardous.
”Yes, we received a licence and approval of the environmental impact assessment a week ago and we hope to start mining at the end of 2008,” said Martin McAllen, a representative of Paladin Africa.
Paladin Africa, a subsidiary of Australia’s Paladin Resources, and the Malawi government last month signed a 10-year development agreement for the project, located at Kayelekera, 40km west of Karonga district.
Uranium mining is expected to earn $220-million annually in export earnings for the impoverished south-eastern African nation, representing about 10% of gross
national product and 40% of current export income.
Right groups were concerned the project could pollute Lake Malawi, Africa’s third largest freshwater lake and a source of clean water, protein through fish and employment for millions of Malawians.
”No process or waste waters will be directly discharged into the environment or the rivers, but will be captured in and stored in specially designed dams and ponds,” McAllen said.
The mine will produce about 1 500 metric tonnes of natural uranium oxide — used to manufacture fuel for nuclear power stations — annually over the first seven years of its operation.
Paladin’s social obligations under the accord will include building modern primary and secondary schools and health facilities worth $10-million within Kayelekera.
The country has an annual per capita income of $210.
About 65% of its 12-million population lives below the poverty line and earn less than a dollar a day. – Sapa-AFP