Government of Malawi Not Sure If It Will Renegotiate Agreement With Paladin

The list continues to grow of people in Malawi who have publicly asked the Government of Malawi to renegotiate the Mining Development Agreement it signed with Paladin Energy Ltd.

Earlier this month, for example, Kamuzu Chibambo of the People’s Transformation Party (PETRA) gave the government and company a 14-day ultimatum to explain why the deal cannot be renegotiated.

This ultimatum was met with negative reactions from Paladin Africa’s General Manager for International Affairs, Greg Walker, and Malawi’s Minister of Mining, John Bande. However, Bande has committed to making the agreement public although it is currently bound by a confidentiality clause.

In an updated response to the 14-day ultimatum, which has now passed, Malawi’s Minister of Information and Civic Education, Moses Kunkuyu, said that consultations are underway to discuss calls for renegotiation. The government’s position is to be made known after consultations have taken place.

Government through the Ministry of Mines in making consultations to make a sound decision on the matter. Issues to do with contracts, like that of the mining deal, require thorough consultations for the betterment of both parties.

Blame has been placed on the previous government, under Bingu wa Mutharika, for signing the agreement without making the terms known.

Paladin Africa, a subsidiary of Paladin Energy, is operating Malawi’s largest mine, Kayelekera Uranium Mine, in Karonga, northern Malawi. The known terms of the fiscal regime in the agreement are listed in the image below. They have been taken from a letter (23 February 2007) that was signed by Paladin’s Managing Director, John Borshoff, and sent to the Company Announcements Office of the Australian Stock Exchange.

Image

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4 responses to “Government of Malawi Not Sure If It Will Renegotiate Agreement With Paladin

  1. Pingback: Chibambo renews calls for renegotiation of the “stinking development agreement” between Malawian Government and Paladin | Mining in Malawi·

  2. Pingback: Paladin honouring Environmental Performance Bond commitment stipulated in Mining Development Agreement | Mining in Malawi·

  3. Pingback: Malawi’s mining stakeholders divided over new report on lost tax revenue | Mining in Malawi·

  4. Pingback: Khwima Phiri dies at Paladin’s Kayelekera uranium mine days after UN says Malawi is losing out from mine | Mining in Malawi·

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