Australian-based uranium miner Paladin Energy on Monday said Ban Reserve Bank of Malawi (RBM) Governor Dr Perks Ligoya has apologised on his radio remarks when he said government has realised some of the mistakes and would demand to “renegotiate” the terms for the Kayelekera project.
The mining licence which covers an area of 55, 5 km2, and was granted for a period of 15 years, renewable for further ten-year periods.
But in a statement made available to Nyasa Times,Paladin boss John Borshoff moved to allay investor fears and informed that Ligoya has apologised for the remarks.
“The Governor has personally apologised for these comments, and since the release of the article, has subsequently clarified his comments to the news agency and the Malawi media,” Borshoff said.
Ligoya had made the comments on Capital Radio Straight Talk programme and was reported by Nyasa Times.
Paladin said it would hold further discussions with the appropriate Ministries to reinforce the importance of adherence to legally binding terms of the agreement, in ensuring the continuing operations of the Kayelekera mine.
Borshoff said the development stability agreement between Paladin and the government of Malawi established the fiscal and regulatory framework for the company’s investment in that country, and guaranteed a period of stability in recognition of the Kayelekera mine’s unique position as the first significant foreign investment in Malawi’s resources sector.
The agreement also provided Malawi with a 15% equity stake in Paladin (Africa) Limited, the owner company of the Kayelekera mine.
The Kayelekera mine has a nameplate capacity of 3.3-million pounds a year. It produced 566 248 lb in the June quarter.
Meanwhile, Ligoya speaking on Zodiak Broadcasting Service clarified that he never meant that government would want to “renegotiate” the deal, saying the powers rest in the line ministry of energy.
He, however, disclosed that Malawi has started an export tracking system.
“We want transparency on export proceeds,” he told the radio.
“We have put up export tracking system,” said Ligoya.
Malawi is also expecting other uranium projects at Kanyika, in the central district of Kasungu, and at Livingstonia, in the northern region, where preliminary exploration work by another Australian firm, Globe Uranium, is proving promising.Follow and Subscribe Nyasa TV :