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The Australia-based mining company Paladin Energy Ltd. issued a statement Aug. 26 that it will begin uranium mining production in Malawi in January 2009. If Paladin meets its production targets, Malawi will become a significant uranium producer and see a boost to its otherwise meager economy. While successful production by the junior mining company is likely to attract takeover interest from mining energy majors, the government of Malawian President Bingu wa Mutharika will use its newfound revenues to tighten its grip on its political opponents.

The target output for Paladin’s Kayelekera mine near the northern Malawian town of Karonga is almost 1,300 tons per year. Kayelekera will be the country’s first uranium mine, and overall reserves are estimated at 18.7 million metric tons. Should Paladin hit its production target, Malawi will rank ninth in the world in uranium mining production, immediately after the United States and ahead of Ukraine.

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November 20, 2008 | 1849 GMT

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