44
MODERN MINING
February 2014
URANIUM
T
he closure is bad news for Malawi,
as Kayelekera is virtually the only
large-scale commercial mine in
the country. The Government of
Malawi (GoM), which has a 15 %
interest in PAL, has been notified of this deci-
sion and PAL says it will be working with the
relevant GoM authorities on implementation
of the suspension of operations.
According to Paladin, the decision to sus-
pend production at KM is based on two
factors, both beyond the control of PAL and
Paladin: firstly, the continuing depressed price
for uranium oxide, which has been severely
negatively impacted since March 2011 fol-
lowing the nuclear reactor damage caused by
the Fukushima earthquake and tsunami; and,
secondly, the unsustainable cash demand to
maintain the loss-making operation at KM.
The Managing Director/CEO of Paladin,
John Borshoff, said that the decision to place
KM on care and maintenance would be in the
best long term interest of all stakeholders, as
the operation would resume only when it was
profitable to do so.
“The Kayelekera Mine has performed excep-
tionally well technically, with production
levels recorded at or near nameplate capac-
ity over the past 12 months and significant
achievements made in PAL’s cost reduction
programme. That is a credit to all the staff at
KM and something of which they can be very
proud. Nevertheless, despite these consid-
erable efforts, KM continues to operate at a
loss due to the low prevailing uranium price.
Paladin is unable to continue to provide the
level of financial support that PAL has required
in recent years, hence the decision at this time.
“By placing Kayelekera on care and mainte-
nance now, we are preserving the remaining
value of the orebody until it can be mined prof-
itably to make a positive contribution to the
Australian uranium miner Paladin Energy, listed on the ASX, reports that its subsidiary company,
Paladin (Africa) Limited (PAL), is suspending production at its KayelekeraMine (KM) in northernMalawi.
The suspension will involve placing the operation on care and maintenance until the price of uranium
recovers. This decision will preserve the remaining orebody until a sustained price recovery occurs and
Paladin determines that production may be resumed on a profitable basis.
Night-time operations in
the Kayelekera pit.
PALADIN ENERGY
suspends
production at
Kayelekera
