Government, mining companies finally sign Mining Development Agreements-MDAs
Government through Ministry of Mining and Ministry of Finance has finally signed Mining Development Agreements (MDA) with Lancaster Exploration Limited (BVI) and Lotus Resources after two years of negotiations.
The agreements paves the way for the resumption of mining operations at Kayelekera Uranium Mine in Karonga and Songwe Hill in Phalombe respectively.
Speaking during the official signing ceremony for the MDAs facilitated by Presidential Delivery Unit-PDU in Lilongwe on Friday, Minister of Mining, Monica Chang’anamuno said the agreements are a win-win product based on the belief that government, the mining investor and Malawians share some fundamental interests on benefiting from the mining activities.
“These mines will go a long way in reshaping and strengthening Malawi’s economy by among other things creating jobs, generating the much needed forex and stimulate local economic activities in general,” she said.
Chang’anamuno highlighted that the Lotus alone is expected to create 450 direct employment and 200 indirect jobs with anticipated revenue of $1.6million revenue per year in dividends, $20million in royalties annually and other taxes while the Songwe Hill project will create 1200 jobs and 10,000 indirect jobs with anticipated revenue of $120.6 per annum in form of royalties, dividends ND other taxes.
In his remarks, Minister of Finance Simplex Chithyola Banda expressed excitement that the mining agreements will bring financial resources into the country.
“The agreements are guiding principles of actual mining work in this country,” he said.
Chithyola Banda believed that the investors will explore the means and ways of processing and adding value to the minerals in order to generate more than simply exporting the raw materials.
One of the Mining investor, Lancaster Exploration Limited (BVI) Director, Alex Lemon said his company is extremely happy to sign the agreement with the government.
“The agreement will allow Malawi to develop its mining industry which has been pointed out as one of the pillars to grow the economy of the country,” he said.
Lemon assured government that the companies are ready to start the operations as soon as possible.
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