suspension of production at kayelekera

Uranium Supply receives yet another squeeze ! This time it's Paladins Kayelekera Mine in Malawi.



IMO : This is in the advent of continued low Uranium prices " Good news " for shareholders.


And well overdue, as Kayelekera should have been placed on hold 12-18 Months prior.


Paladin advises that its subsidiary company, Paladin ( Africa ) Limited, is suspending production at its Kayelekera Mine in Malawi.


The suspension will involve placing the Operation on care and maintenance until the price of Uranium recovers.
This decision will preserve the remaining ore body until a sustained price recovery occurs and Paladin determines that production may be resumed on a profitable basis.

The Government of Malawi (GoM), which has a 15% interest in PAL, has been notified of this decision
and PAL will be working with the relevant GoM authorities on implementation of the suspension of operations.



Reasons for Decision

The decision to suspend production at KM was based on two factors, both beyond the control of PAL and the Company.

1. The continuing depressed price for uranium oxide, which has been severely negatively impacted since March 2011 following the nuclear reactor damage caused by the Fukushima earthquake and tsunami, and

2. The unsustainable cash demand to maintain the loss:making Operation at KM.




Cheers from G64 :)


.