Paladin Energy Crashes, Files For Insolvency

Paladin Energy, operators of Kayelekela Uranaium Mine in Karonga Malawi and Langer Heinrich in Namibia has filed for insolvency at the Australian high court after the company failed to pay a debt of USD277 million to a France based company called Electricite de France, The Southern Times reported. Kayelekera Uranium Mine in northern Malawi was the country’s only large-scale mining operation. But for more than five years, the mine is not operating and is under ‘care and maintenance’ because of global low uranium prices. Malawi awarded a 15-year license to Paladin to mine uranium in Kayelekera in April 2007. In return, Paladin agreed to build a school, a clinic and rehabilitate the airport, among other promises. Economics Association of Malawi (Ecama) president, Henry Kachaje agreed with Gondwe saying the resumption of the mine is a mirage. “The company was not profitable and filing for insolvency and the appointment of administrators is meant to protect shareholders, clients and creditors,” Kachaje said. The development comes at a time when Malawi launched its first ever extractive sector transparency report, which showed that the sector raked $8 million into state coffers. Read more.