what to do what to do...
- (a) form an advocacy group: Quite effective in some places, but I fear the
dollar bills dancing in their heads would outweigh any social conscience.
Call me a cynic
(b) form a Malawian Monkey Wrench Gang. Not a bad idea...Who would be
(c)become a shareholder of the company and try to influence management at
AGM, use stock dividends to pay school fees for nearby villages: Not likely,
but then again, this is cynical me, basing my responses on years of
experience dealing with this....
Solve the self/tribal/ethinic/lingual/religious self-interest and you
>-- Original Message --
>From: "Joanna Jane Hooper" <johooper@...>
>Date: Sat, 04 Jun 2005 09:39:43 -0600
>Subject: Re: [ujeni] news: Uranium mine to transform Karonga
>Interesting article Scott. Do you have any idea how
>Malawi will ensure that this Australian company doesn't
>just come in, take the vast majority of the profits, bring
>mostly their own employees, and leave the Malawians to do
>the skut work--how do developing countries deal with this?
> Will Malawi actually profit, or will the spoils all go
>back to Australia?
>On Thu, 2 Jun 2005 18:04:35 +0300
> "Scott Geibel" <scott@...> wrote:
>> This is an interesting development, which I've been
>>monitoring for a while.
>> The article greatly overexagerates the national-level
>>economic impact, but
>> the operational facts check out.
>> Uranium mine to transform Karonga
>> by Francis Tayanjah-Phiri, 26 May 2005 - 14:01:38
>> Malawi?s northern town of Karonga is sitting on a
>>fortune which is anticipated
>> to turn the economy of the country around should both
>>government and investors
>> take it seriously.
>> The project, lying on the northern part of the Northern
>>Rukuru River basin
>> within Karroo Sandstones, is also expected to transform
>>the livelihood of
>> people in Karonga.
>> The investors, Paladin Resources Limited, a company
>>listed on the Australian
>> Stock Exchange, is talking big of how the Uranium
>>deposits at Kayelekera,
>> 40 kilometres west of Karonga along the Chitipa road,
>>could make Malawi
>> swim in money.
>> Going by the Uranium captains? zeal, one would say town
>> act fast before they are overtaken by events in this
>>already growing town.
>> Currently, Paladin Africa Limited, a company founded by
>>the mother Australian
>> firm to run the Karonga uranium initiative, has already
>> a camp on the mine site. Immediately this camp finishes,
>>maybe in a week
>> or two, what they call ?bankable feasibility studies?
>> ?We have finished marking the drilling sites and are
>>ready for a process
>> we term assaying ? which is establishing how much
>>uranium there is down
>> ?This process would involve metallurgy, which is a
>>treatment test ? how
>> to take the uranium out of the rock ? and this test
>>would be done by independent
>> experts, Mintek of South Africa, with other samples also
>>sent to Australia
>> for diverse laboratory tests,? says Paladin Resources?
>> Ed Becker.
>> Becker, in the company of Project Geologist, Alexander
>>Kathewera said prospects
>> of going full throttle mining within a couple of years
>>are high .
>> ?The current process of bankable feasibility studies
>>would be done by independent
>> consultants, and this would involve drilling a total of
>>5,500 metres on
>> different sites within the uranium territory and we have
>>120 drill holes
>> earmarked,? he said.
>> The geologists also said in two months time the mine
>>site would boast of
>> its own modern weather station used to indicate weather.
>>This, he said,
>> is a requirement in the uranium mining process.
>> ?Currently we are acquiring the equipment from South
>>Africa,? he said.
>> Kathewera and Becker also say the ongoing feasibility
>>studies would involve
>> a thorough environmental impact study ? to be done by an
>> just like the other phases of the study.
>> Focus of the study, says Becker, is detailed
>>verification of the new mining/milling
>> concepts planned to be adopted in the project and
>>validation or modification,
>> if required, of all other mine model parameters used in
>>the 1990 feasibility
>> This new study will be done in two stages and is
>>expected to take 18 months
>> to complete.
>> The 1990 feasibility studies were conducted by the
>>Central Electricity Generating
>> Board in Great Britain (CEGB), a company that initially
>>discovered the high
>> grade Kayelekera sandstone uranium deposits in early
>> That company carried out extensive work on the project
>>and completed the
>> feasibility studies in 1991. Their studies indicated
>>that the project was
>> uneconomic, using the mining model they adopted ? and
>>later, it was abandoned
>> in 1992, largely due to poor outlook for uranium and the
>> CEGB, pressurising the company to return to its core
>> But one sees the seriousness of the new investors in
>>their mine initiative
>> when told that the company (Paladin Resources) has
>>injected US$2 million
>> ? whose end results would determine the total capital
>>investment for the
>> ?However, from our preliminary studies, we estimate the
>>mine would require
>> about $60 million to fully start operating as a mine,?
>> Once mining starts, it is expected that several other
>> will crop up in Karonga and Malawi as a whole. For
>>instance, Paradin Resources
>> top management talks of the requirement to have a daily
>> to and from Karonga, which automatically brings back to
>>life the Karonga
>> It is expected that the bulk of core trained employees
>>of the mine would
>> net a monthly income of approximately $1,000 ? which
>> mean transformation of lives in Karonga, as these people
>>would do most of
>> their shopping in that town.
>> The bulk of the employees would be residing at Karonga
>>town and commute
>> by company bus every day to the mine site at Kayelekera.
>> into a booming demand of residential houses in the town.
>> The frequency of officials flying from Australia and
>>other countries where
>> Paradin Resources has mining investments would also
>>necessitate decent accommodation
>> and restaurants in the town ? obviously boosting the
>> Village head Kayelekera beams with pride when he
>>visualises how the mine
>> would transform lives of people in his area.
>> ?The first thing I think of is that my village would be
>> of a sudden poverty would either completely go, or be
>> in my village solely depend on subsistence farming,
>>which has not taken
>> us anywhere. Now they will have a chance to work on the
>>mine,? he says.
>> It is all clear that once the project becomes
>>operational it will have a
>> great impact on and make a difference on the people of
>>the town and Malawi
>> as a whole
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