Thomas Munthali, NPC Director
Director General of the National Planning Commission, Thomas Munthali, says the signing of two mine development agreements between the government and Mkango Lancaster Exploration for rare earth mining in Phalombe and Lotus Resources for revamping the Kayerekera Uranium Mine in Karonga, marks a milestone in Malawi’s economic recovery.
The signing took place on Friday, 26 July 2024, at Capital Hill in Lilongwe.
Munthali stated that the development is a steady solution to the persistent low economic growth rates Malawi has experienced since 2021.
He emphasised that this aligns with the Malawi 2063 vision, which calls for substantial investments, with large-scale mining being a crucial component.
“The signing of these two MDAs at once sends a clear message that Malawi is open for the mining business,” said Munthali.
He added, “The fact that these have been facilitated by a multi-institutional government negotiating team, put together at short notice by the Presidential Delivery Unit, shows that the country’s leadership is walking the talk of promoting the ATM within the Malawi 2063 thrust of wealth creation.”
The signing ceremony was attended by Minister of Mining, Monica Chang’anamuno and Minister of Finance, Simplex Chithyola, among other government officials.
Lotus Resources is expected to realise a revenue of $1.6 million per year in dividends and $20 million in royalties annually, while Lancaster Exploration projects to raise $120.6 million per year in the form of royalties, dividends, and other taxes.
