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PALADIN (AFRICA) forcefully responds to Dr Perks Ligoya Radio Remarks

In remarks on radio on 25 November and published in the local media on 26 November and 30 ovember, Dr. Ligoya criticised the Paladin Group of Companies. Dr. Ligoya:

Paladin (Africa) Limited rejects Dr. Ligoya’s claims. They are unfair, untrue and misleading. The facts are:

  1. There is nothing about the operation of Paladin’s offshore account which is not completely transparent and already well known to the Reserve Bank of Malawi
  2. There is also nothing new in the announcement by Dr. Ligoya of the proposal for the ReserveBank to become a co-signatory to Paladin’s offshore account
  3. agreed to this request 12 months ago – it has not happened because the Reserve Bank did not return documentation required by the relevant commercial bank to enable this change
  4. The Government of Malawi approves all contracts for sale of uranium oxide before export
  5. The Reserve Bank is fully informed on use of proceeds of uranium sales from Kayelekera Mine
  6. Paladin provides the Reserve Bank full disclosure – on a monthly basis – of transactions of the Company’s offshore and onshore accounts, including full reconciliation of all exports proceeds from export sales, deposits into the offshore account, loan repayments and deposits to the onshore account, together with provision of supporting bank statements

Uranium Sales Proceeds and Lending Requirements

Benefits to Malawi

Kayelekera Mine is the first large, modern mining project developed in Malawi on an internationalscale. Paladin’s investment in Malawi now exceeds MWK 825 billion (US$ 500 million) – more than any other investment made in the country.

As a result of that investment, Malawi has gained the following benefits:

Concessions and Conditions

Dr Ligoya said: “We gave out a lot of concessions and funny conditions that Kayelekera people – they are in Namibia – they don’t have those conditions like they sort of coined with us here in Malawi.”

The facts are:

Transparency and Accountability

Dr. Ligoya stated: “There was no accountability whatsoever in how much money they are getting as profits. It’s pathetic.”

The facts are:

Profitability of Kayelekera Mine

Despite the assertions by Dr. Ligoya, the people of Malawi should know and understand that Paladin’s Malawi operations are currently loss making (not profitable) and its running costs, including wages and salaries, continue to be part funded by the parent company in Australia, thus enabling the Kayelekera Mine to continue operating.

Despite these difficult circumstances, Paladin (Africa) Ltd continues to meet in full its obligations to the Government of Malawi and, on a monthly basis, makes very significant payments in taxes and royalties, generates valuable export earnings and continues to provide employment to 994 Malawians.

Paladin is proud of its faith and investment in Malawi. The Company looks forward to a brighter future when the uranium price fully recovers, as we confidently expect it to do. In the meantime, Paladin expects that its commitment will be matched by a level of cooperation and consideration on the part of the Reserve Bank and the Government of Malawi. A lack of mutual commitment will be detrimental for all stakeholders.

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