There is growing belief among some sections of the society that Malawi is losing out on the Kayerekera mining and have since called on the government to renegotiate the deal.
Leader of Malawi’s opposition People’s Transformation Party (Petra) Kamuzu Chibambo — who is also a prominent lawyer— said unless the deal were renegotiated, Malawi would continue to lose out in the mining sector and called upon all Malawians to galvanise their voices to press government to enter into negotiation with the miners.
Paladin has MK3.9bn environmental bond for Malawi uranium mine -Walker, Nyasa Times, 3 April 13, Australian Miner Paladin Energy Limited, operators of the Kayerekera Uranium Mine in Karonga district have a US$10 million Environmental Performance Bond with two commercial banks in Malawi to among other things cater for rehabilitation costs for signs of default during and after mine life.
“Paladin has a MWK 3.9 Billion (US$10 Million) Performance Bond in place to satisfy the environmental obligations of Clause 18.14(a). This comprises a US$ 5 Million Performance Bond with Standard Bank Limited and US$ 5 Million Performance Bond with Nedbank Malawi Limited,” Paladin General Manager for International Affairs Greg Walker toldNyasa Times in an email response.
The bond, in the form of irrevocable letters of credit, will deal with issues like water and environment contamination and the eventual clean up.
A letter of credit is a letter from a bank guaranteeing that a buyer’s payment to a seller will be received on time and for the correct amount. In the event that the buyer is unable to make payment on the purchase, the bank will be required to cover the full or remaining amount of the purchase.
The bond further obliges the company to sensitize people on the potential dangers associated with radioactive substances and prevention procedures.
Clause 18.14(a) of the Development Agreement states that the Environmental Performance Bond “is to be in the form of an irrevocable letter of credit, with a commercial bank in Malawi and is to be in favour of the Director of Environmental Affairs.”
Walker said therefore under Clause 18.14(a) his company is obliged to establish the Environmental Performance Bond with a commercial bank in Malawi and not the Central Bank…..
There is growing belief among some sections of the society that Malawi is losing out on the Kayerekera mining and have since called on the government to renegotiate the deal.
Leader of Malawi’s opposition People’s Transformation Party (Petra) Kamuzu Chibambo — who is also a prominent lawyer— said unless the deal were renegotiated, Malawi would continue to lose out in the mining sector and called upon all Malawians to galvanise their voices to press government to enter into negotiation with the miners.
Karonga Business Community, a local non-governmental organisation, also threatened to hold demonstrations against the mine if their demands, among them turning Karonga District Hospital into a referral facility, were not met.
Civil society activists and Members of Parliament have in past also urged government to re-negotiate its contract with PAL., which owns 85 percent of Kayelekera Mine. Government owns the remaining 15 percent…… http://www.nyasatimes.com/2013/04/03/paladin-has-mk3-9bn-environmental-bond-for-malawi-uranium-mine-walker/
aladin is ripping us off all because our politicians are greedy and ignorant on how to sign deals.Paladin palm oiled government and that is why both DPP and PP have never wanted to be transparent about the deal. The west of course has been quiet because the money Paladin is ‘stealing’ from Malawi is enriching the west. Then they give back our money as ‘aid’. If Banda was to demand that the deal is renegotiated you will see the west ganging up against Malawi. That is how bad the west is exploiting poor countries but pretending that they are democratic and transparent. 
