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Kayelekera mine targeted again by environmental activists. A storm has caused minor damage to the water management system, and small amounts of storm water have been released from the mine site. Our view of the company remains unchanged. Paladin Energy ( OTCPK:PALAF ) has issued two press releases regarding its Kayelekera mine in Malawi, which the company has put on care and maintenance as discussed in our most recent article on the Australian-listed uranium producer. The first press release comes in response to accusations and media reports regarding the alleged illegal discharge of contaminated sludge from the tailings dam into the water system. Paladin Energy strongly denies these allegations, and reasserts its intentions to begin discharge of purified surplus water in the upcoming wet season in early 2015. The company maintains that the water quality of this released surplus water will ” meet Malawi and internationally recognised discharge standards, including the World Health Organisation (WHO) drinking water guideline for uranium content. ” The second press release reports on minor storm damage at the Kayelekera mine caused by a severe downpour on January 5, 2015. The liner in one of the run-off tanks was ruptured due to the surge of rain water ” releasing up to 500m 3 of material to the bunded areas of the site .” The company reports approximately 50 liters of run-off water have over-topped the bunds. Protection and remediation action has been taken and a sampling programme to analyze water from within the local stream system has been initiated. The Kayelekera mine remains on care and maintenance and therefore does not provide much benefits for the host country at present. NGOs and individual activists have targeted this operation in the past, and the combination of the mentioned media reports with the storm damage does not exactly improve the company’s standing in the country. The described events do not change our view of Paladin Resources, but developments in Malawi need to be watched since this mine will provide important leverage once uranium prices pick up again. Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks. Now that you’ve read this, are you Bullish or Bearish on ? Bullish Bearish Sentiment on ( ) Thanks for sharing your thoughts. Why are you ? Submit & View Results Skip to results » Share this article with a colleague Scalper1 News
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