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 Paladin. Show all posts
Showing posts with label Paladin. Show all posts
Tuesday, 12 June 2007
Thursday, 7 June 2007
Rights groups sue Paladin over Malawi uranium mine project
A coalition of Malawian rights groups sued Australian firm Paladin and the government on Thursday in a bid to halt to a 185 mln usd uranium mine project.
'We have obtained an injunction against Paladin and the Malawian government for flouting procedures about uranium mining,' John Chawinga, secretary of the Catholic Commission for Peace and Justice, one of the rights groups, told Agence France Presse.
He said that the coalition wants the government to review an environmental impact assessment of the project, and said the 'project is environmentally hazardous and we don't want to take chances with people's lives'.
'We have only been told about the economic benefits but Malawians have not been told about the advantages and disadvantages of uranium mining. What are the dangers?' Chawinga said.
The project to mine uranium at Kayelekera in northern Malawi could have 'catastrophic consequences for future generations if people are exposed to radiation', he said.
The coalition also said that the project could pollute Lake Malawi, Africa's third largest freshwater body and a source of clean water, fish and employment for millions.
In April, the project by Paladin Africa, a subsidiary of Australia's Paladin Resources, received a mining licence after the firm and the government inked a 10 year development deal.
The mining is expected to earn the impoverished nation 220 mln usd annually in export earnings at the end of 2008, representing about 10 pct of gross national product and 40 pct of current export income.
Martin McAllen, a representative of Paladin, parried concerns about pollution. 'No process or waste waters will be directly discharged into the environment of the rivers, but will be captured in and stored in specially designed dams and ponds,' he said.
Charles Msosa, a spokesman from the energy and mines ministry, defended the government, saying it had 'complied' with the environmental management act and had 'undertaken to monitor the project on an ongoing basis'.
'The government would like to inform all Malawians who wish the country well that it is in the public's interest that the uranium project at Kayelekera be carried out by Paladin,' Msosa said in a statement.
A court hearing has been fixed for June 19 in the administrative capital Lilongwe.
'We have obtained an injunction against Paladin and the Malawian government for flouting procedures about uranium mining,' John Chawinga, secretary of the Catholic Commission for Peace and Justice, one of the rights groups, told Agence France Presse.
He said that the coalition wants the government to review an environmental impact assessment of the project, and said the 'project is environmentally hazardous and we don't want to take chances with people's lives'.
'We have only been told about the economic benefits but Malawians have not been told about the advantages and disadvantages of uranium mining. What are the dangers?' Chawinga said.
The project to mine uranium at Kayelekera in northern Malawi could have 'catastrophic consequences for future generations if people are exposed to radiation', he said.
The coalition also said that the project could pollute Lake Malawi, Africa's third largest freshwater body and a source of clean water, fish and employment for millions.
In April, the project by Paladin Africa, a subsidiary of Australia's Paladin Resources, received a mining licence after the firm and the government inked a 10 year development deal.
The mining is expected to earn the impoverished nation 220 mln usd annually in export earnings at the end of 2008, representing about 10 pct of gross national product and 40 pct of current export income.
Martin McAllen, a representative of Paladin, parried concerns about pollution. 'No process or waste waters will be directly discharged into the environment of the rivers, but will be captured in and stored in specially designed dams and ponds,' he said.
Charles Msosa, a spokesman from the energy and mines ministry, defended the government, saying it had 'complied' with the environmental management act and had 'undertaken to monitor the project on an ongoing basis'.
'The government would like to inform all Malawians who wish the country well that it is in the public's interest that the uranium project at Kayelekera be carried out by Paladin,' Msosa said in a statement.
A court hearing has been fixed for June 19 in the administrative capital Lilongwe.
Malawi uranium project has government backing - Paladin
Mining exploration and development firm Paladin Africa said on Thursday that it had received a statement from the Malawian government confirming its support for Paladin’s Kayelekera uranium project, after a group of nongovernmental organisations named them in two actions.
The government said in a press statement that it had complied with the Environmental Management Act in relation to the Kayelekera uranium project.
"The government has complied with the Act and it has undertaken to monitor the Kayelekera uranium project on an ongoing basis,” Paladin cited the government as saying. “It is in the public's interest that the project should be carried out by Paladin as the Ministry believes that the government of Malawi has not transgressed any of its laws.”
Paladin said that it remained confident that it had proceeded in the proper manner and that it was encouraged by the “positive stance” that the government of Malawi had taken.
The government said in a press statement that it had complied with the Environmental Management Act in relation to the Kayelekera uranium project.
"The government has complied with the Act and it has undertaken to monitor the Kayelekera uranium project on an ongoing basis,” Paladin cited the government as saying. “It is in the public's interest that the project should be carried out by Paladin as the Ministry believes that the government of Malawi has not transgressed any of its laws.”
Paladin said that it remained confident that it had proceeded in the proper manner and that it was encouraged by the “positive stance” that the government of Malawi had taken.
Monday, 28 May 2007
Paladin Resources Ltd.: Kayelekera Project, Malawi
PERTH, WESTERN AUSTRALIA -- (MARKET WIRE) -- May 28, 2007 -- Paladin Resources Ltd. ("Paladin" or "the Company") (TSX: PDN)(ASX: PDN) wishes to advise shareholders that its subsidiary Paladin (Africa) Limited ("PAL") and the Government of Malawi have been named defendants in two actions commenced by a group of Non-Government Organisations ("NGO's") in Malawi. Shareholders should also be aware that the NGO's claim that their actions are not intended to stop the development of the Kayelekera Project. Mr Mwakasungula of the Centre for Human Rights and Rehabilitation, who has sworn the affidavit in support of the legal actions, states: "Centre for Human Rights and Rehabilitation (CHRR), which I represent, and all the other Plaintiffs herein are not against the Kayelekera Project. It is a very welcome project ..."
The two actions referred above seek to delay the Kayelekera Project until the Government and PAL, amongst other things:
(i) rectify alleged deficiencies in the process associated with the grant of approval under the Malawi Environment Management Act ("EMA"); and
(ii) put in place additional protective measures affecting both the local community and the country.
Both the Government and PAL intend to vigorously defend all claims particularly those concerning the Environmental Impact Assessment ("EIA").
The EIA was prepared by Knight Piesold (Pty) Limited ("Knight Piesold"), a member company of the International Knight Piesold Group. Knight Piesold is an engineering and environmental consulting firm based in Johannesburg, South Africa. International Knight Piesold Group has offices in Canada, Australia, the USA, and various offices in Africa and South America. A team of in-house and sub-contracted specialists sourced from Malawi and from around the world were involved in the preparation of the EIA. The EIA was reviewed by the Director of Environmental Affairs in accordance with the EMA prior to the grant to PAL of the approval to proceed with the Kayelekera Project.
The two actions referred above seek to delay the Kayelekera Project until the Government and PAL, amongst other things:
(i) rectify alleged deficiencies in the process associated with the grant of approval under the Malawi Environment Management Act ("EMA"); and
(ii) put in place additional protective measures affecting both the local community and the country.
Both the Government and PAL intend to vigorously defend all claims particularly those concerning the Environmental Impact Assessment ("EIA").
The EIA was prepared by Knight Piesold (Pty) Limited ("Knight Piesold"), a member company of the International Knight Piesold Group. Knight Piesold is an engineering and environmental consulting firm based in Johannesburg, South Africa. International Knight Piesold Group has offices in Canada, Australia, the USA, and various offices in Africa and South America. A team of in-house and sub-contracted specialists sourced from Malawi and from around the world were involved in the preparation of the EIA. The EIA was reviewed by the Director of Environmental Affairs in accordance with the EMA prior to the grant to PAL of the approval to proceed with the Kayelekera Project.
Friday, 11 May 2007
May 10 Uranium Stocks Update: Paladin Resources (TSE:PDN)
Befitting its status as one of the go-to uranium plays, Paladin has made steady progress over the last few months. Its flagship Langer Heinrich project in Namibia opened and should have been running at 100% of design throughput since late April. The company projects that Langer Heinrich will reach output of 2.6 million lbs of yellowcake per year sometime next month; an expansion late next year should increase output to a minimum of 3.7 million lbs/year.
Meanwhile, its Kayelekera project in Malawi will be 85% owned by Paladin and 15% by the government, a compromise that assures the company of ten years worth of no taxation or royalty increases. A bankable feasibility study (BFS) confirmed the viability of Kayelekera to produce 3.3 million lbs of yellowcake over the first seven years, with a CapEx of $185 million. Environmental approval and a mining license has also been obtained by Paladin and the project is slated to be commissioned in September 2008 with full production expected Q2 2009. In addition, the threat of non-governmental organizations (NGOs) in Malawi potentially stopping Paladin from mining seems to have faded as local support for Kayelekera appears to be strong.
Putting the two projects together, if Paladin continues to meet production deadlines (which the company has been able to do thus far), it expects to cash flow ~$2.8billion US from now until 2012, assuming a yellowcake price of $90 US/lb.
Moving to the acquisition side of things, Paladin appears to be successful in its second bid for Summit Resources Ltd, which holds 50% of the Valhalla uranium deposit in Western Australia. As of April 27, the company had received acceptances of 58.21% of Summit’s issued capital and has also extended the bid period until May 18. However, the caveat here is that Areva, the French uranium giant, has filed a complaint against Paladin with the Takeovers Panels, insisting that Summit shareholders be allowed to decide on the deal at a general meeting. Areva owns a 10.46% stake in Summit, so this controversy could take some time to resolve itself.
With a $4.2billion Cdn market cap, Paladin is by no means a small company anymore, but with one of the best track records thus far of uranium producers, continues to trade at a premium. Truly a good stock to hold and perhaps buy on weakness.
Meanwhile, its Kayelekera project in Malawi will be 85% owned by Paladin and 15% by the government, a compromise that assures the company of ten years worth of no taxation or royalty increases. A bankable feasibility study (BFS) confirmed the viability of Kayelekera to produce 3.3 million lbs of yellowcake over the first seven years, with a CapEx of $185 million. Environmental approval and a mining license has also been obtained by Paladin and the project is slated to be commissioned in September 2008 with full production expected Q2 2009. In addition, the threat of non-governmental organizations (NGOs) in Malawi potentially stopping Paladin from mining seems to have faded as local support for Kayelekera appears to be strong.
Putting the two projects together, if Paladin continues to meet production deadlines (which the company has been able to do thus far), it expects to cash flow ~$2.8billion US from now until 2012, assuming a yellowcake price of $90 US/lb.
Moving to the acquisition side of things, Paladin appears to be successful in its second bid for Summit Resources Ltd, which holds 50% of the Valhalla uranium deposit in Western Australia. As of April 27, the company had received acceptances of 58.21% of Summit’s issued capital and has also extended the bid period until May 18. However, the caveat here is that Areva, the French uranium giant, has filed a complaint against Paladin with the Takeovers Panels, insisting that Summit shareholders be allowed to decide on the deal at a general meeting. Areva owns a 10.46% stake in Summit, so this controversy could take some time to resolve itself.
With a $4.2billion Cdn market cap, Paladin is by no means a small company anymore, but with one of the best track records thus far of uranium producers, continues to trade at a premium. Truly a good stock to hold and perhaps buy on weakness.
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