australian mine project slammed

the australian newspaper 30/8/2006

Australian mine project slammed
From correspondents in Blantyre
August 30, 2006
MALAWIAN rights groups petitioned the government today against a plan to grant a 16-year tax break to an Australian firm set to mine uranium, saying the project could be environmentally hazardous.

"A 16-year tax exemption is deplorable and in bad taste when the mining life span is ten years," Undule Mwakasungura, a spokesman for a coalition of five rights groups, said, after sending the petition to the government.

"We wish to remind Malawians that uranium mining and milling is a dangerous, risky and polluting process," Mr Mwakasungara said.

Mr Mwakasungura said Paladin Africa Limited, a subsidiary of Australia's Paladin Resources Ltd, was still conducting studies on the possible environmental impact, "needed to apply for a full mining license".

He said the rights groups, which include the influential Centre for Human Rights and Rehabilitation (CHRR) and Citizens for Justice, are "appealing to the government to let all legal procedures in such an investment ... and act as the guardian of protecting the interests of Malawians".

The groups warned that uranium mining threatened the health of workers, communities and the environment.

They say the project could pollute Lake Malawi, Africa's third largest freshwater lake and a source of clean water for millions of Malawians.

Paladin announced plans last year for a multi-million-dollar project to mine uranium in the northern district of Karonga. It is still awaiting a licence.

Full mining is expected to start in 2008, with projected annual export earnings pegged at $US44 million ($58 million), according to company projections.

Malawi, whose economy is powered by agriculture, also has huge coal deposits but the uranium project will become the biggest mining venture in Malawi once it takes off.

Malawi, one of the world's poorest countries, has an annual per capita income of $US210 ($277). About 65 per cent of its 12 million people still live below the poverty line.

Paladin claims its operations will contribute five per cent of the country's gross domestic product.