Malawi set to resume uranium exports in August after minister’s talks with mine operator

Malawi is poised to recommence uranium exports from the Kayelekera Uranium Mine in August, marking a significant revival for the country’s mining sector. This development follows recent discussions between the Minister of Mining, Thoko Tembo, and the operator, Lotus Resources Limited. The resumption is underpinned by a new Mining Development Agreement (MDA) signed in July 2024, which outlines the fiscal regime, government equity, and a stability period. This move is expected to boost Malawi's economy, which has seen the mining sector's contribution to GDP decline since the mine's suspension in 2014. Legal professionals should note the implications of the updated Mines and Minerals Act 2023 and the Environmental Management Act 2017, as well as specific MDA terms, for future mining investments and operations in the country.

Malawi is on the cusp of a significant economic and legal development with the impending resumption of uranium exports from the Kayelekera Uranium Mine, located in the northern Karonga District. This follows recent high-level discussions between Malawi’s Minister of Mining, Thoko Tembo, and representatives of Lotus Resources Limited, the Australian operator of the mine. The planned restart of operations and subsequent exports in August signal a pivotal moment for Malawi, which aims to leverage its mineral resources to drive national development under its Malawi 2063 blueprint.

The Kayelekera Mine, once a substantial contributor to the nation's Gross Domestic Product, ceased production in 2014 due to a downturn in global uranium prices. Its reactivation reflects improving market conditions for nuclear fuel and a renewed governmental focus on attracting responsible investment in the extractive sector. For legal practitioners, this development underscores the evolving regulatory landscape in Malawi, particularly concerning mining law, environmental compliance, and the intricate details of Mining Development Agreements (MDAs) that govern large-scale projects.

This article will delve into the legal framework facilitating this restart, examining the relevant statutes, the historical context of the mine, and the specific legal and fiscal arrangements now in place. It will also explore the broader implications for legal professionals advising on mining investments, environmental governance, and revenue management in Malawi.

The Kayelekera Uranium Mine has a notable history within Malawi's nascent mining sector. Originally owned by Paladin (Africa) Limited, an 85% subsidiary of Paladin Energy, the mine commenced operations in 2009. The Government of Malawi acquired a 15% equity stake in Paladin (Africa) Limited in July 2009, under the terms of a Mining Development Agreement signed in February 2007. Production at Kayelekera was suspended in February 2014, with the mine placed under care and maintenance due to a significant decline in global uranium prices, leading to a sharp drop in the mining sector's contribution to Malawi's GDP.

In 2020, Paladin sold its 85% interest in the project to Lotus Resources, which later acquired the remaining stake from Lily Resources in 2021, making Lotus Resources the primary operator. The legal framework governing mining in Malawi has undergone significant reforms. Historically, the sector was regulated by the Mines and Minerals Act of 1981, which was widely criticised as outdated. This was superseded by the Mines and Minerals Act 2019 (Act 8 of 2019), which aimed to promote sustainable development, improve the welfare of citizens, and create an attractive investment environment. More recently, the Mines and Minerals Act 2023 (Law No. 25/2023) has been enacted as the primary legislation, further refining the regulatory landscape.

Complementing the mining legislation is the Environmental Management Act 2017 (Act 19 of 2017), which provides a comprehensive framework for environmental protection, management, and the sustainable use of natural resources. This Act mandates environmental and social impact assessments for mining projects and establishes the Malawi Environmental Protection Authority (MEPA) as a key regulatory body. Malawi's fiscal regime for mining is determined by the Mines and Minerals Act, the Taxation Act, and specific terms outlined in individual Mining Development Agreements (MDAs), which have historically included provisions for royalties, corporate tax, and stability periods.

The planned resumption of uranium exports from Kayelekera is primarily facilitated by the new Mining Development Agreement (MDA) signed between Lotus Resources Limited and the Government of Malawi in July 2024. This MDA is a critical legal instrument, guaranteeing a 10-year stability period during which the project's fiscal regime will not be subject to detrimental changes. Under this agreement, the Government of Malawi holds a 15% free carried interest in the mine, a provision consistent with the state's right to acquire equity in large-scale mining projects as stipulated in the Mines and Minerals Act 2019 (and likely maintained in the 2023 Act).

Regulatory compliance for the restart involves adherence to the updated legal framework. The discussions led by Minister Tembo, involving a technical team from the Department of Mines, the Malawi Mines and Minerals Regulatory Authority, the Malawi Revenue Authority, and the Ministry of Finance, underscore the multi-faceted regulatory oversight. This collaboration is crucial for ensuring that the mine operates in full compliance with the Mines and Minerals Act 2023, which governs prospecting, exploration, and mining, and the Environmental Management Act 2017, which mandates environmental standards and impact assessments. The Environmental Management Act 2017, in particular, empowers the Malawi Environmental Protection Authority (MEPA) to enforce environmental policies and legislation, which is vital for a project involving radioactive materials.

Regarding exports, uranium is classified as a strategic mineral under Malawi law, requiring an export license issued by the Ministry of Industrialisation, Business, Trade and Tourism, as per the Control of Goods Act. While President Peter Mutharika issued an executive order in October 2025 prohibiting the export of raw, unprocessed minerals, this prohibition explicitly exempts minerals that have been processed, refined, or value-added in Malawi. Uranium oxide, or yellowcake, is a processed form of uranium, thus falling outside the scope of the raw export ban, provided it meets the value-addition criteria.

The fiscal regime for Kayelekera, as outlined in the 2024 MDA, includes a 5% royalty rate and a 30% corporate tax rate. A key aspect of the recent ministerial engagement was the directive to establish a reference price for yellowcake uranium, which is essential for accurate royalty calculations. This focus on transparent and equitable revenue collection addresses historical concerns raised by civil society and the World Bank regarding Malawi's mining fiscal regime, which has previously been criticised for weak terms and tax concessions that led to significant revenue losses. Malawi's commitment to the Extractive Industries Transparency Initiative (EITI) further promotes transparency in revenue flows from the sector. Furthermore, Malawi, alongside other SADC countries, is actively working to harmonise regulations on uranium transportation, a move supported by the International Atomic Energy Agency (IAEA), to streamline logistics and enhance safety protocols.

The resumption of uranium exports from the Kayelekera Mine represents a critical juncture for Malawi, offering a pathway to increased foreign exchange earnings and economic diversification. The government's proactive engagement with Lotus Resources Limited and its emphasis on compliance with the updated Mines and Minerals Act 2023 and the Environmental Management Act 2017 signal a more structured and transparent approach to mineral resource development. This renewed activity, coupled with the stability period enshrined in the new MDA, aims to foster investor confidence while ensuring greater national benefit.

For legal practitioners, this development necessitates a thorough understanding of Malawi's evolving mining and environmental regulatory frameworks. Advising clients on new investments or existing operations will require meticulous due diligence, particularly concerning the specific terms of Mining Development Agreements, the requirements for environmental and social impact assessments, and adherence to local content and community development provisions. Furthermore, monitoring the implementation of the raw mineral export ban and any further harmonisation of regional regulations for strategic minerals like uranium will be crucial. The success of Kayelekera's restart will serve as a significant precedent for future large-scale mining projects in Malawi, underscoring the importance of robust legal frameworks and transparent governance in harnessing the nation's mineral wealth.