Paladin stops Malawi uranium exploration: Uncertainity over licences

Uranium Australian miner Paladin Energy Limited has suspended further exploration activities of uranium in Malawi following uncertainty hovering around its five exclusive prospecting licences (EPLs).

John Borshoff

John Borshoff

Paladin boss Walker with some members of the Karonga district council

Paladin boss Walker with some members of the Karonga district council

Paladin has a major uranium-mining project at Kayelekera, in northern Malawi, and the five EPLs cover areas close to Kayelekera Mine (KM in Karonga.

According to Paladin former managing director and chief executive officer John Borshoff said in the company’s latest quarterly activities report, Department of Mines has informed the miner that Malawi Government has imposed a moratorium on applications and grants of all mining and exploration activities, adding that it has also introduced a new cadastral system and a new Mines and Minerals Act.

“Paladin anticipates that its five EPL applications are unlikely to be granted before the March quarter 2016,”Borshoff states.

Paladin has since suspended exploration activities in Malawi until there is clarity on the provisions of the new mining code and its EPL applications have been granted.

There has been calls for Malawi government to remove in the deal the suspicious agreements signed between Paladin Resources Limited and the DPP led administration of late President Bingu wa Mutharika.

One of the concerned Malawians who has been forceful on the alleged dishonest deal is Kamuzu Chibambo, President of People’s Transformation Party (PETRA).

Chibambo has on several occasions called on government to renegotiate the agreement and also threatened to mobilise Malawians to protest if it does not do so, arguing the deal was not benefiting poor Malawians.

The PETRA president, among others, said under the current agreement government granted exclusive rights to Paladin to borrow against “all ore and mineral-bearing materials, sand, slimes, tailings and residues of whatsoever nature located on and under the tenement.

Kayelekera, whose licence covers an area of 55.5 km2 and was granted for a period of 15 years, renewable for further ten-year period, is Malawi’s largest mine and according to the deal, the country collects only $100 million yearly in taxes.

Before its establishment, the mining industry was only contributing less than three percent to the country’s GDP but now it has risen to 10 percent.

Malawi launched a Mines and Minerals Policy, which points at inadequate and outdated legal provisions and lack of harmonisation of legislations that affect mining activities.

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michael
Guest

Malawi’s largest mine and according to the deal, the country collects only $100 million yearly in taxes.
Malawi Govt should tell us where that money goes
100 million thats 10 times what Lutepo stole.
Where was this money when MBS needed it

daniel samarakunjuta
Guest

The mapwevupwevu government of Malawi granted a 40year deal to paladin just for for winning uranium,for what reason?…. And yet it doesn’t even benefit the locals not even the government itself but only one individual. Am extremely happy to see the crying of innocent Malawians being noticed at once!law of winning in any country the beneficiallies are the pple around the morning plant then the government get 50% of the profit.The contract is only signed each and every five consecutive years not 40years for what reason???? Ask Patrice Mosepe will rl will tell how the minning is being done.

Dr.prof.nyada
Guest
@ The most stupid that malawi government did is to allow these stupid and worthless thieves to come here and masqurad as innocent miners. Let them go. They have stolen enough and leave in dire situations of consequences that come along with uranium mining. 10years down road people karonga and even the whole malawi will not be the same due externalities caused by emissions from mining. Malawi will psy haevy cost for this. Check this out: cancers,abortions, blindness, jnfertility, disability will be the order of day for malawi, not to talk of the diminishing aquatic life and the environmental degradation.I… Read more »
Sapitwa
Guest

Just be very careful that if they leave, they should still be responsible for mine rehabilitation. It is most likely that you will not find another miner for Uranium coming as would be the case with coal or other commodities.

Mwalyafyale Mukulumba
Guest
Mwalyafyale Mukulumba
Paul Kagame already said that African natural resources belongs to Africans.The little money you get from aid,is made from the same mineral of yours since they know that most Africans are sleepy headed by they crooked politicians who wants everything for themselves.Bingu benefitted alot from these dodgy agreement and the greedy Aussies.Well done Kamuzu Chibambo for blowing the whistle.This uranium has just brought misery for people of Karonga by increasing the cost of living as if everybody works at Kayerekera.They are even poisoning our environment for nothing.At the end it will be Greg Walker and his Aussie friends in Sydney… Read more »
DPP Guru
Guest

Amalawi kusinza. We need a revolution now.

ALOSWEA
Guest

I thought that kwacha will be stronger with there mining late them go mimba thesethese akitibera kkkkkkk

...
Guest

Chuma chathu chimenechi chinapindulira ma banja awiri: Walker family and Mutharika family.
God help us

Mulukhu
Guest

These azungu together with moya lead government should renegotiate failing to do so yoo.

Achawa Business Consultancy
Guest
Achawa Business Consultancy

These guys have already benefited hence they are just planning an exit strategy

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