afrol News, 17 April - Malawi expects to see more foreign earnings with the opening of the new uranium mine in the northern part of the country by the end of the year.

The new project, raising hopes of Malawi's natural resources potential, will get a US$ 220 million investment through an Australian mining group, Paladin Energy Ltd, which will own all the mining rights with government holding the reserved 15 percent stake.

"The mine will generate over $150 million in export earnings per year," the managing director of Paladin Africa, John Borshoff told local media.

Mr Borshoff said the mine is expected to make an output of about 1,500 metric tons of uranium, with the project also to create more than 300 new jobs with a trickling factor, while also contributing 10 percent of the GDP.

Paladin Africa, a subsidiary of an Australian firm, already owns another uranium nine in Karonga, 600 kilometers north of the capital, Lilongwe.

Hailing the opening of the new mine as a great success during his term in office, president Bingu wa Mutharika, who is seeking the second term in the 19 May elections, said Malawi had entered a new era of economic development and transformation.

Malawi, whose economy is dependent on agriculture, especially tobacco, has recently opened the country for foreign investors and explorers of its natural resources' wealth that also include bauxite and germ stones.

The Southern African state, which saw very little development during decades of the iron fist under president Kamazu Banda, returned to multi-party democracy in 1994. Known as the warm heart of Africa, Malawi is reknowed of its tobacco farming, tourism and fisheries from the giant Lake Malawi.

By staff writer

© afrol News

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