Saturday, October 03, 2009

(NYASATIMES) Paladin accuses NGOs of being paid to stop Malawi uranium mine

Paladin accuses NGOs of being paid to stop Malawi uranium mine
By Nyasa Times
Published: October 2, 2009

Paladin Energy Ltd., an Australian company that mines uranium at Kayelekera in Malawi’s northern region, accused some non-governmental organizations in the country of being paid by Western donors to oppose the mining of the metal.

The Catholic Commission for Justice and Peace, the Roman Catholic church’s human-rights group, and Citizens for Justice received 49 million Malawi Kwacha ($350,000) from western corporations that are against the use of uranium as an alternative source of energy, Neville Huxham, Paladin’s country representative, told a parliamentary committee on health and population in the capital, Lilongwe.

Huxham didn’t identify the corporations.

The Kayelekera Uranium mine, which will bring in annual taxes and royalties of $45 million for the Malawian government, was commissioned on April 17.

Malawi President Bingu wa Mutharika said at the opening that the mine “promises to turn the country’s economy around.”

The CCJP denied that it had received any money to be used to attack Paladin.

“Yes, we receive our funding from Catholic Relief Services to carry out our programs in the country, one of which is to monitor uranium mining at Kayelekera,” Charles Chinula, chairman of CCJP, said in an interview Friday from the Karonga district, which borders Tanzania.

“As a civil society organization we want to make sure that uranium is mined safely and in a regulated manner. There are no secrets about our activities on uranium mining.”

The CCJP is concerned that Paladin may back-track on commitments it pledged to the people of Karonga, where it operates the mine, Chinula said.

He accused Paladin of not doing enough to protect water sources from contamination.

There was no harm in mining uranium in Malawi because the country’s uranium is of low quality, Huxhum told the committee.

Huxhum didn’t immediately respond to calls today from Bloomberg News seeking comment. The Citizens for Justice also couldn’t immediately be reached for comment.

– Bloomberg

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