FREE ARTICLE PREVIEW: You are enjoying a free sample of exclusive
subscriber content. There is a limit of three free articles per week.

DAILY NEWS Feb 12, 2013 4:34 PM - 1 comment

Paladin sets things straight

TEXT SIZE bigger text smaller text

Paladin Energy (PDN-T) felt it necessary to set the record straight.

Last week, an online media report from Malawi said a group of recently fired employees forced their way on to their former place of employment — Paladin’s Kayelekera Mine. The report alleged that the disgruntled former employees posed a threat to Paladin’s personnel and property.

On Feb. 11, however, Paladin issued its own statement. According to the company, a group of 32 former employees entered the site last Thursday, although their chief complaint was with commercial banks in Malawi, who were withholding severance payments because of outstanding loans owed to the banks by some ex-employees.

Paladin says its management team at Kayelekera met with the group, and, after hearing their complaints, gave the disgruntled former employees letters for the banks “requesting sympathetic consideration of their situation”.

The group was then peacefully escorted from the site, and, Paladin says, at no time were the ex-employees a threat to its personnel or property.

Given the sensitivity of uranium mines, the company also stressed that the group never tried to gain access to any secure areas, but that those areas did go into lock-down mode as a precaution.

Police reinforcements were called in but didn’t end up being needed, according to the company, and there was no impact on the mining operation as production continued as scheduled.

In late January, Paladin cut 110 national employees at the mine as part of company-wide cost saving measures. The company says the affected employees received all due entitlements and termination packages exceeded minimum requirements.

The cuts came despite production at the mine being up roughly 21% last quarter. The increased production, however, didn’t make up for the negative effect of continued low prices for uranium, which Paladin blames for the mine operating at a loss.

Uranium prices have been trending lower since July of last year, when they fell below the US$50 per lb. mark. U3O8 has recently been trading for US$43.35 per lb.

Paladin shares were off as much as 8% last week when news of the incident was first released. But after clarifying matters from its point of view its stock recovered 6% to $1.17 per share.

© 1915 - 2016 The Northern Miner. All Rights Reserved.

Related News
Paladin gets PE from Asia
Japan sees reactors in future, uranium investors rejoice
Paladin suspends production at Kayelekera
Related Press Releases
Paladin Energy Ltd: December Quarter 2015 Conference Call and Investor Update - 17 February 2016
Paladin Energy Limited: Quarterly Activities Report for the Period Ending 31 December 2015
Paladin Energy Limited: Response to the Daily Times (Malawi) Article of 15 December 2015

Companies in This Story

Paladin Energy Ltd

Properties in This Story

Kayelekera Mine

Monitor These Topics
More Topics »

Horizontal ruler

Reader Comments

Most recent firstOldest first

Mining in Malawi

To read more about this and other stories about Malawi's mining sector, please visit

Posted February 26, 2013 04:25 PM

Horizontal Ruler

Post A Comment

Note: By submitting your comments you acknowledge that Northern Miner has the right to reproduce, broadcast and publicize those comments or any part thereof in any manner whatsoever. Please note that due to the volume of e-mails we receive, not all comments will be published and those that are published will not be edited. However, all will be carefully read, considered and appreciated.

Your Name (this will appear with your post) *

Email Address (will not be published) *

Comments *

* mandatory fields