PERTH, WESTERN AUSTRALIA--(Marketwire - June 12, 2007) - Paladin Resources Ltd. (TSX:PDN)(ASX:PDN) responded today to an article that appeared on May 28, 2007 on the Mineweb website reporting a news article published in Malawi suggesting that the Kayelekera Uranium Project start up date may not be achievable because the Malawi Electricity Supply Company (ESCOM) could not afford to construct major power distribution infrastructure and, to avoid this, Paladin would need to invest a considerable amount of capital on grid power supply.
Due to the identified unreliable grid power supply, the Kayelekera Bankable Feasibility Study (BFS) only considered on-site diesel power generation for its electricity supply and all costings that have been presented in the BFS are calculated on this basis. The Government of the Republic of Malawi was fully appraised of this during the preparation of the BFS. Grid power may be used at a later date if and when ESCOM can deliver required quality and reliability of electricity.
Paladin has already placed an order for its 10MW power generation facility and this is expected to be on site in the scheduled project time frame. This key element is therefore not expected to delay the September 2008 commissioning date that has been set for the project.
Caution Regarding Forward Looking Statements: Statements regarding the Company's plans to develop the Kayelekera Project are forward-looking statements that are subject to risks and uncertainties that may cause actual results to differ from those expressed or implied by such statements. There can be no guarantee such statements will be realised. In particular, there can be no assurance that Paladin will be able to successfully build, develop and operate a uranium mine or that it will be able to raise the funds necessary to complete such tasks. Furthermore, there can be no assurance that if completed, any mine will be profitably operated.
Showing posts with label ESCOM. Show all posts
Showing posts with label ESCOM. Show all posts
Tuesday, 12 June 2007
Friday, 1 June 2007
World Bank part of Malawi–Moz interconnector engagement
The World Bank, the lead financier of the $84-mil- lion Mozambique–Malawi electricity interconnector project, is engaged in a series of discussions with stakeholders in Mozambique and Malawi in order to kick-start the long-awaited project.
The interconnector project will involve the construction of a 200-km, 220-kV power line from the Matambo substation, in Mozambique, to Phalula, north of Malawi’s commercial capital, Blantyre.
Augusto de Souza Fernando, the director of power production and transport at Mozambican electricity utility EdM, says a World Bank team has visited Mozambique to discuss the implementation of the project with various stakeholders.
“This is a project which is 100% owned by EdM, [but] in implementation, there will be some coordination with Cahora Bassa Hydroelectric (HCB), which owns the Matambo substation. “The arrangement is that HCB will operate the line, as is the case with the line to Zimbabwe,” says Fernando.
He says the stakeholders have agreed that there will be initial financing of $60-million for the project, of which about $25-million will be invested on the Mozambican side.
The Swedish Agency for International Development and the Norwegian International Development Agency have joined the World Bank as financiers of the project.
Electricity Supply Corporation of Malawi (Escom) CEO Kandi Padambo says the parastatal expects to seal a power-purchase agreement with HCB before the end of the year.
“So far, there are no obstacles in our discussions with HCB, the supplier, and the World Bank as the lead financier. We just have to finalise some processes,” says Padambo.
The discussions between Escom and HCB hit a snag a year ago because Escom was discouraged by the high price demanded by HCB.
As Escom was considering engaging into discussion with another supplier from the southern Africa region, HCB revised the price downwards forcing Escom to rescind its decision and continue with the arrangements to purchase power from the Mozambican firm.
The Mozambique–Malawi power interconnector is part of the Southern African Power Market project that is being implemented under the auspices of the Southern Africa Power Pool.
The interconnector project will involve the construction of a 200-km, 220-kV power line from the Matambo substation, in Mozambique, to Phalula, north of Malawi’s commercial capital, Blantyre.
Augusto de Souza Fernando, the director of power production and transport at Mozambican electricity utility EdM, says a World Bank team has visited Mozambique to discuss the implementation of the project with various stakeholders.
“This is a project which is 100% owned by EdM, [but] in implementation, there will be some coordination with Cahora Bassa Hydroelectric (HCB), which owns the Matambo substation. “The arrangement is that HCB will operate the line, as is the case with the line to Zimbabwe,” says Fernando.
He says the stakeholders have agreed that there will be initial financing of $60-million for the project, of which about $25-million will be invested on the Mozambican side.
The Swedish Agency for International Development and the Norwegian International Development Agency have joined the World Bank as financiers of the project.
Electricity Supply Corporation of Malawi (Escom) CEO Kandi Padambo says the parastatal expects to seal a power-purchase agreement with HCB before the end of the year.
“So far, there are no obstacles in our discussions with HCB, the supplier, and the World Bank as the lead financier. We just have to finalise some processes,” says Padambo.
The discussions between Escom and HCB hit a snag a year ago because Escom was discouraged by the high price demanded by HCB.
As Escom was considering engaging into discussion with another supplier from the southern Africa region, HCB revised the price downwards forcing Escom to rescind its decision and continue with the arrangements to purchase power from the Mozambican firm.
The Mozambique–Malawi power interconnector is part of the Southern African Power Market project that is being implemented under the auspices of the Southern Africa Power Pool.
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