Australian resources group Paladin says 
 it has earned $33-million to date from 
 uranium exports from its Kayelekera mine, in northern Malawi.

The mine started exporting yellowcake in September 2009.

Paladin made the announcement when it presented a symbolic cheque for 385-million Malawi kwacha (about $1,6-million) for mining royalties and taxes to the Malawi government at a ceremony held in Lilongwe recently.

“The response from buyers is that we are producing an outstanding quality of yellowcake. 
“Our exports so far have gone through without any problems,” said Paladin’s CFO, Garry Korte, who presented the cheque to Malawi’s Minister of Natural Resources, Energy and the Environment, Grain Malunga.

Korte said that the mine was currently producing at about 50% of its capacity, which is 3,3-million pounds of uranium a year, but hoped to reach its full capacity next month.

“By the end of January, Kayelekera had 
exported 5 000 lb of uranium, worth $33-million, and the response from buyers continues to be positive,” says Korte.

Malunga said that the payment of the 
royalties and taxes marked a turning point for Malawi’s mining sector, noting that the amount paid by Paladin was the highest earned by government from a single mining operation in a short period.

“We expect the [payments] to improve significantly once the mine reaches its 100% 
capacity,” said Malunga.

He added that the Malawi government was satisfied with the performance of Kayelekera and hoped that the mine would achieve its target, earning $200-million this year.

Kayelekera is the biggest-ever mining operation in Malawi, which is traditionally agriculture dependent, with tobacco being its major foreign exchange earner.

Mining accounts for a paltry 1% of the country’s gross domestic product; however, the contribution is projected to jump to 10% when the Kayelekera project reaches full production.

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