Key contracts signed for Malawi uranium project

Australia-based exploration and development company Paladin Resources' African subsidiary, Paladin Africa, has signed three major contracts for the development of its Kayelekera uranium project, in Malawi.

The engineering, procurement, construction and management (EPCM) contract has been awarded to Engineering & Projects Company (E&PC), which has been appointed as the project engineer, Paladin said.

E&PC is a Johannesburg-based mining and minerals engineering firm, and is part of the multidisciplinary group Aveng.

The mining and earthworks contracts have been awarded to international earthmoving and construction consortium Mota Engil Engineering. Mota has already been involved in the Kayelekera project in establishing the 11-km branch road to the project site and preparing all lay-down areas for the anticipated equipment arrival, Paladin explained.

Mota has also started preparing the site for the erection of the 800-person construction camp, which is currently being transported from Langer Heinrich, Paladin's uranium mining operation in Namibia.

"It is anticipated that Mota will be ready to start the civil earthworks for the project by the end of August. Major mining equipment orders are also in place and planned delivery is on schedule for late 2007 in readiness for mining prestrip operations to begin," Paladin said in a statement.

The company commented that, following the awarding of the contracts and the finalisation of a project labour agreement with the Malawian Workforce Community Forums, the tempo of the project development was increasing rapidly.

Worker recruitment programmes had been initiated and there were already 200 employees active on site, the vast majority of whom are local Malawians. The total number of people employed is expected to peak at about 1 000 during the construction period.

Both the construction plans and engineering designs have reached an advanced stage and purchase orders for some of the longer-lead items are already in place. Enquiry documentation is currently being prepared for the remainder of the subcontracts and process equipment.

Plant commissioning remains on schedule for the fourth quarter of next year, Paladin said.