COMMENT - Under the present investment regime, not only will the benefits not accrue to anyone in Zambia, but the local population and their descendants will bear the damage of uranium mining for generations to come. They should receive international support and attention in their actions.
Residents oppose two uranium mining ventures in Siavonga
By Staff Reporters
Wed 18 Aug. 2010, 13:40 CAT
THE opening of two uranium mining ventures in Siavonga have met resistance as residents led by former member of parliament Frederick Hapunda are up in arms describing the operations as danger to their communities. And Council of Churches in Zambia policy and advocacy advisor Evans Rubara has called on the government to be clear about its policy on uranium mining.
The Siavonga residents, led by Haapunda, have rejected the intended opening of uranium mining in two areas of the district, saying dangers of the mineral outweigh the benefits.
A cross section of residents in Siavonga have unanimously resolved to take on the government and ensure it does not award mining licences to two named investors that had already shown interest in undertaking full-scale mining of uranium in the district.
Hapuunda observed that having uranium mined in the district would put the lives of the people in the area at risk because of fissionable and radioactivity of the mineral in question.
Denison Mines Zambia Limited and Africa Energy Resources are currently in Siavonga district carrying out exploration works in Muntanga and Sikoongo areas respectively awaiting government approval to award them full-scale mining licences slated for 2012.
During the CCZ-organised public forums held in Siavonga last weekend, the residents drawn from a cross section of society declared that investment in terms of uranium mining was not welcome in their district.
And in an interview on Sunday, Rubara asked the government to ensure that there was a specific policy that dealt with uranium mining.
Rubara observed that without a clear mining policy on uranium mining, people's lives could be adversely affected.
“Without a policy we are faced with social issues; people are going to be displaced, the livelihood of the people will be affected even though they will live five kilometers away from the mining activity area because they will breathe the same air,” Rubara said.
He added that without the policy, the companies mining uranium would develop with high levels of impunity as there was currently no law that could take them to task and there was no legislation that would protect the community.
“As a representative of this mother body (CCZ) we would like to find out what principle was used by the government that was voted into power by the people, what methodology was used to allow activities of uranium such as exploration works, to commence in the two mines before a policy is put in place. We would like government to respond,” Rubara questioned.
He said CCZ strongly believed that the profits that could be gained from uranium mining could not be compared to the negative impacts on the livelihood of the people.
Rubara advised that government needed to pay attention to consequences that would befall the country in an event of pollution of Lake Kariba.
CCZ programme assistant Nsama Chikwanka observed that there had been inadequate community sensitisation on uranium mining with regards its negative impacts.
Chikwanka said for the activity of uranium nature, more sustained engagement would have been done to prepare the affected villagers since they are the ones that are relocated and displaced.
Labels: AFRICA ENERGY RESOURCES, CCZ, DENISON MINE, EVANS RUBARA, FREDERICK HAPUNDA, SIAVONGA, URANIUM
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Denison to open uranium mine in Siavonga
Written by Chiwoyu Sinyangwe
Wednesday, September 02, 2009 8:49:02 PM
DENISON Mines Zambia Limited has announced plans to open a uranium mine in Siavonga with an initial investment estimated at US $118 million.
According to the review of the Environmental Impact Statement (EIS) report and associated resettlement action plan submitted by Denison Mines Zambia Limited for the proposed uranium mining project to Environmental Council of Zambia (ECZ), the proposed projects would be at Mutanga and Dibwe to be mined by open pit.
The EIS stated that the ore from the said open pits would be subsequently processed into uranium oxide concentrate for export.
“Denison Mines Zambia Limited intends to mine uranium ore from the Mutanga and Dibwe open pits in Siavonga district,” the EIS read in part. “The project will develop two open pits, one at Mutanga covering approximately 33 hectares and the other at Dibwe covering approximately 54.3 hectares. The Mutanga open pit will be 750m long and 550m wide. The Dibwe open pit will be developed approximately 10 kilometres southwest of the Mutanga pit and will be 1,550 metres long and 350 metres wide. The investment cost of the project is estimated to be US $118 million.”
During the mine operations, approximately 107 households would be displaced from surrounding settlements which include Chiyobeka, Kasambo, Sinangosi, Kapita, Chilundu and Kumulilansolo villages.
Following the recent approval of new regulations to guide uranium mining activities by the United Nations International Atomic Energy Agency, the Ministry of Mines started issuing uranium mining licences to foreign companies.
Among the companies that are actively involved in uranium mining in the country included Lumwana Mining Company, Munali mines and Denison Mines Zambia Limited.
Labels: DENISON MINE, EIS, SIAVONGA, URANIUM
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Denison Mine to sell 19.9 per cent shares
Written by Nchima Nchito Jr
Friday, April 17, 2009 2:21:53 PM
DENISON Mine has revealed intentions to sell 19.9 per cent
shareholding in the company to Korea Electric Power Corporation (KEPCO) in a bid to strengthen its balance sheet.
Denison Mine owns the Mutanga mine project in the South of Zambia formerly called the Kariba Uranium Project.
Capital expenditures for the project are estimated to be over $100 million with a yearly operating cost reaching $40 million.
According to mining weekly, Denison was hoping to raise C$94.9 million (US $77 million) through the offer should it prove successful.
Denison, which said last month it was investigating a number of options to avoid being in breach of a debt covenant by year-end, expects that an agreement with the Korean utility would mean the company stays within the terms of the earnings covenant with its banker.
The company further stated that it planned to use the proceeds for debt repayment and project development, but the “majority” of the funds raised would be used to pay down the company's revolving credit facility.
Recently, there had been speculation that the company may need to sell assets to reduce its debt load.
But company president Ron Hochstein said the proposed agreement with Kepco would likely mean Denison avoids breaching the debt covenant.
“We haven't run all the numbers yet, but we expect that it should resolve the situation,” said Hochstein.
A memorandum of understanding has been signed between the parties, which includes proposals for an off-take agreement for Kepco to buy 20 per cent of Denison's yellowcake production from 2010, and a private placement of about 58-million Denison shares to Kepco, which would give it a 19.9 per cent stake in the Canadian company once the transaction is completed.
If the transaction is completed, Kepco will have the right to appoint two directors to Denison's board, and a right of first offer to buy up to 20 per cent of any assets Denison acquires with a partner or sells.
Entities nominated by Denison chairperson Lukas Lundin would also buy another 15-million shares, for C$19.5 million (about U.S $15 million).
Labels: DENISON MINE, KEPCO, KOREA, MUTANGA MINE
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