Once a beacon of hope in the mining sector in Malawi, now it is approaching its ruins.
Reports from the Kayelekera uranium mine in Karonga indicates that Paladin company that runs the mine is set to lay off some 300 staff today as the company sees no future in its operations in the country.
The decision has come after some civil societies, and Peoples’ Transformation Party President — Kamuzu Chibambo, had had queries with the government and Paladin on how the proceeds from the mining were being used.
Reports indicated that Paladin was on a tax holiday to the Malawi government and further allegations indicated that there was corruption in the awarding of the licence and its subsequent management. However, Paladin Africa denied the corruption allegations.
Meanwhile, some commentators had warned that the tax holiday that Paladin was given was a non-starter in the mining business but there calls were not heeded to by the government.
Malawi has been attempting to make in-roads into the mining sector but has always met setbacks. The most recent have been the case of the oil exploration on Lake Malawi which have stirred trouble with Tanzania. On the other hand, bauxite mining from Mulanje mountain has been met by a court order locals obtained against the activity.