Paladin Energy’s social and environmental record in Africa

Jim Green, Nuclear Monitor #847, 21 July 2017,

https://www.wiseinternational.org/nuclear-monitor/847/paladin-energys-social-and-environmental-record-africa

Paladin Energy’s operations in Africa ‒ the Kayelekera uranium mine in Malawi and the Langer Heinrich mine in Namibia ‒ have been marked by regular accidents and controversies. The WISE-Uranium website has a ‘Hall of Infamy’ page dedicated to the company.1 Some of the accidents and controversies are listed here and a more detailed account is posted on the Nuclear Monitor website.2

April 2006: Paladin CEO John Borshoff told ABC television: “Australia and Canada have become overly sophisticated. They measure progress in other aspects than economic development, and rightly so, but I think there has been a sort of overcompensation in terms of thinking about environmental issues, social issues, way beyond what is necessary to achieve good practice.”3

November 2006: NGOs groundWork and the Centre for Civil Society gave out the ‘Southern African Corpse Awards’ ‒ an annual mock ceremony for big business ‒ in Durban. Paladin was awarded the ‘Pick the Public Pocketprize’ thanks to a nomination from Malawian NGOs.4

2007: Criticisms of operations at Kayelekera outlined by the Catholic Church and other Malawian community and environmental organisations included the following issues of concern: inadequacy of the Environmental Impact Assessment; flaws in community consultation; government deferring its role in safeguarding community interests to the company; destruction of cultural and historic sites; increased social disorder; unfair compensation for those forcibly relocated; and undue interference with makeup of community based organisations.5

4 January 2007: Two Malawian NGO members were ordered to go to the Karonga Police Station by the Chief of Police and threatened with arrest for taking an Australian photojournalist sponsored by the two Australian unions (MUA and CFMEU) to Kayelekera. The Chief of Police said they were acting on a complaint from Paladin.6

March 2007: Paladin’s Kayelekera project would not be approved in Australia due to the major flaws in the assessment and design proposals, independent reviewers concluded. Their report covered baseline environmental studies, tailings management, water management, rehabilitation, failure to commit to respecting domestic laws, use of intimidation and threatening tactics against local civil society, improper community consultation and payments to local leaders, and destruction of cultural heritage.7

27 March 2008: The open pit at Paladin’s Langer Heinrich mine was flooded with run-off water from a rainstorm and was out of use for about one month.8

April 2008: A spill of a large quantity of sulphuric acid at the Langer Heinrich mine raised questions about safety procedures at the mine. The Namibian newspaper was informed that a mine employee lost grip on the hose transferring the acid from a truck to a storage facility. The employee apparently fled to call for help, after which a forklift dumped a large quantity of caustic soda on the spill to neutralise the acid. The result was explosive ‒ a series of loud bangs could be heard from a distance, but nobody was injured.9

16 March 2009: A chemical fireball and explosion killed two workers and badly injured another at the Kayelekera mine. Over the next two days, the fatal accident prompted 200 contract workers to strike over pay and working conditions. The International Consortium of Investigative Journalists noted in a 2015 report that three more workers, including a contractor, died in other incidents at Kayelekera in the years after the fireball.10

18 March 2009: Malawian police fired tear-gas at workers at the Kayelekera mine construction site. The workers, mostly casual laborers, were on a sit-in since the previous day to pressure management for better working conditions. The strike forced Paladin management to temporarily shut down the mine and evacuate its senior managers to Lilongwe.11

August 2009: Neville Huxham from Paladin Energy Africa said: “We’re taking the uranium out of the ground, we’re exporting it to be used for productive purposes, so we should be getting a medal for cleaning up the environment.”12

September 2009: Australia’s Fairfax press reported on the Kayelekera mine: “The company’s approach has caused friction with local non-government groups, which took legal action to impose tougher controls on the project in 2007. The case was settled out of court. Since then it has been accused of lax safety standards (three workers have died in accidents this year) and failing to bring promised benefits to local communities …”13

Australian-based scientific consultant Howard Smith said regulations were ”essentially a self-regulation system, which will ultimately result in releases [of contaminated water] that are under-reported, uncontrolled and hidden from the affected public.”13

October 2009: Fourth death in 2009 at Kayelekera. The company said that an employee had died at the mine as a result of a mini-bus rollover on October 7. Paladin said 19 people including the driver were injured, with 15 admitted to hospital. Paladin advised on August 25 that a construction contractor had died at the mine, also as a result of a motor vehicle incident. The company reported on April 5 that two sub-contractors had died in a flash fire at the mine construction site on March 16.14

September 2010: Paladin orders miners to work at Kayelekera in spite of a shortage of dust masks. A Nyasa Times undercover journalist who visited the mine on 23 September 2010 found that most miners did not wear masks, and their hands and face were caked with uranium ore. The workers protested to management about the development. The geology superintendent of the mine, Johan De Bruin, confirmed the lack of dust masks. In a September 23 email sent to mine workers, he ordered staff to continue working despite the shortage of dust masks. “Mining is a 24 hour operation and cannot be stopped as a result of a shortage of available dust masks,” said De Bruin in his September 23 email.15

June 2011: A truck driver died in an accident at the Kayelekera mine ‒ the Tanzanian national died after the truck he was driving struck a water tank.16

15 August 2011: Progress on Expansion Phase Three of the Langer Heinrich mine came to a standstill after employees of the main contractor, Grinaker LTA, downed tools due to grievances related to impending layoffs. According to a workers committee representative, more than 600 employees stopped work at noon on August 15 and continued to strike the following day.17

2012: CRIIRAD, a French NGO specialising in independent radiation monitoring, conducted radiation monitoring activities around the Kayelekera mine. Its report stated: “CRIIRAD discovered hot spots in the environment of the mine and a high uranium concentration in the water flowing from a stream located below the open pit and entering the Sere river. Results that relate to the radiological monitoring of the environment performed by the company are kept secret. The company should publish on its web site all environmental reports. No property right can be invoked to prevent public access to Paladin environmental reports (especially as Malawi State holds 15 % of the shares of the uranium mine). It is shocking to discover that million tonnes of radioactive and chemically polluting wastes (especially tailings) are disposed of on a plateau with very negative geological and hydrogeological characteristics.”18

11 May 2012: Workers at Kayelekera went on strike over labor conditions: The local workers told Nyasa Times that they were demanding a pay increase from Paladin. Workers downed tools on May 11, halting production at the site. On May 16, Paladin announced than an agreement in principle was achieved for a return to work by the striking employees.19

December 2012: Paladin threatened 75-year old Australian pensioner Noel Wauchope with legal action for posting on her antinuclear.net website an article critical about Paladin’s operations in Malawi. The threat backfired when it was publicised in the widely-read Fairfax press in Australia. Fairfax business columnist Michael West wrote: “The price of Noel Wauchope’s concern for the people Karonga was a long and intimidating letter of demand from Ashurst on behalf of the uranium company Paladin Energy … “20

2013: A detailed report by the African Forum and Network on Debt and Development states:21

“Consistent with what many analysts and commentators have said, this research study unequivocally established that the benefits that Malawi, as a country, is gaining from the deal made with Kayelekera are tangential and dismal. Among the reasons why benefits are skewed more favourably towards the mining company are that the negotiations were done hastily under an atmosphere that was not transparent. Furthermore, the government officials involved were not experienced and were no match for the skilled negotiators for Paladin.

“Above and beyond this, the major problem that contributed to the disproportionate sharing of benefits are the country’s archaic laws that fail to hold the Multinational Corporation (MNCs) more accountable to pay taxes and remit profits to Malawi. … The investment incentives offered to Paladin have revenue implications to the Malawi government. These include; (1) 15% carried equity in project company to be transferred to the Republic of Malawi, (2) Corporate tax rate reduced from 30% to an effective 27.5%, (3) 10% resource rent reduced to zero, (4) Reduced Royalty rate from 5% to 1.5% (years 1 to 3) and 3% (thereafter), (5) removal of 17 % import VAT or import duty during the stability period, (6) immediate 100% capital write off for tax purposes, The capitalisation (debt: equity) ratio of 4:1 for the project, and (7) stability period of 10 years where there will be no increase to tax and royalty regime and commitment to provide the benefit of any tax and royalty decrease during the period. This clause in the agreement statement implies amortization of profits. This means that there shall be a reduction or cancellation of taxes to be paid during future years of subsequent profits as a means to compensate the debt accrued by the company during years of registering losses.”

27 June 2013: About 300 workers, including mine staff and contractor employees, picketed at the Langer Heinrich mine, protesting the way they were being treated and paid. The protesting workers and media were barred from the mine site where the demonstration was supposed to take place.22

July 2013: UN Special Rapporteur on the Right to Food, Olivier De Schutter, rubbished the Kayelekera uranium mine deal between Malawi and Paladin, saying Malawi had a raw deal that is robbing the poor. He said that over the lifespan of the mine, Malawi is expected to lose almost US$281 million. “Mining companies are exempt from customs duty, excise duty, value added taxes on mining machinery, plant and equipment. They can also sign special deals on the rate of royalty owed to the government,” he said.23

30 July 2013: An employee died in an accident in the Kayelekera mine’s engineering workshop after being struck in the chest by a light vehicle wheel he was inflating.24

October 2013: The Opposition People’s Transformation Party (PETRA) appealed to government authorities to renegotiate what it called the “stinking development agreement” between Malawi and Paladin regarding the Kayelekera mine.25

3 October 2013: Three miners were injured at Langer Heinrich following a “serious electrical incident”. Paladin said two of the workers received significant burns while a third worker suffered smoke inhalation. One of the workers was flown to South Africa for treatment.26 On October 30, Paladin announced that the injured worker flown to South Africa had died in hospital.27

February 2014: Paladin reported that a truck carrying a container of uranium from Kayelekera overturned. The container fell loose and was punctured by a tree stump, and a “small quantity” of uranium oxide concentrate spilled out. Paladin said the uranium and the soil it came in touch with were removed and taken back to the tailings dam at the mine.28

2 October 2014: About 50 employees staged a protest at the Langer Heinrich Uranium (LHU) mine’s head office in Swakopmund before handing over a petition listing their complaints. Workers employed by companies sub-contracted to LHU claim they had been mistreated at work. The workers from Sure Cast, Gecko Drilling, LBS, Quick Investment, RVH and NEC Stahl claimed they were made to work without benefits, such as medical aid, transport allowances and pension.29

November 2014: Paladin came under fire from a coalition of 33 Malawian civil society groups and chiefs over its proposal to discharge mining sludge into the Sere and North Rukuru rivers. The toxic substances that would flow from the tailings pond at the Kayelekera mine into Lake Malawi 50 kms downstream include waste uranium rock, acids, arsenic and other chemicals used in processing the uranium ore, the coalition said. The lake provides water for drinking and domestic use to millions of Malawians. Part of the lake is protected as a national park.30

2015: A report by the office of Namibia’s Prime Minister said there is a lack of safety at the Langer Heinrich mine and that workers are not aware of policies, rules and procedures as outlined in the radiation management plan.31

January 2015: At the Kayelekera mine, heavy rain caused a liner in the plant run-off tank to rupture, releasing some 500 cubic metres (500,000 litres) of material to the bunded areas of the site. Up to 50 litres may have overtopped one of the containment bunds.32

February 2015: About 60 permanent employees of the Langer Heinrich mine participated in a demonstration to hand over a petition to mine management. Employees sought the removal of the manager for human resources on allegations of victimising employees as well as disregarding employees’ safety. They also accused him of implementing a new salary structure without union agreement. The workers, through the Mineworkers’ Union of Namibia (MUN), also demanded the removal of the mine’s managing director, saying he had total disregard for the union. Workers also said the mine never implemented recommendations made after a 2013 accident that claimed the life of a miner. The workers’ petition said: “Our members are exposed to safety hazards. The company does not properly investigate incidents at the mine.” The workers also alleged that the removal of contract workers from the mine resulted in a lack of rest and increase in fatigue.33

April 2015: Despite opposition from a group of 33 civil society organizations, Paladin began discharging treated waste water from the Kayelekera mine into the Sere River. The discharge of contaminated water was expected to take place for three months. Paladin decided to discharge the waste because the dam at the Kayelekera mine was full, raising the possibility of unplanned and uncontrolled discharges after heavy rains.34

June 2015: A report by ActionAid stated that Malawi ‒ the world’s poorest country ‒ lost out on US$43 million revenue from the Kayelekera mine over the previous six years due to “harmful exemptions from royalty payments from the Malawi government, and tax planning using treaty shopping by Paladin.”35

Australia’s Fairfax press reported: “Between 2009 and 2014, Paladin Energy moved $US183 million out of Malawi to a holding company in the Netherlands and then on to Australia. A 15-page report by London-based ActionAid has found the Dutch transfers and a special royalties deal – in which Malawi’s mining minister agreed to drop the initial tax rate applied to the uranium mine from 5 per cent to 1.5 per cent – have cost the Malawi public $US43 million. In Africa’s poorest nation, where per capita GDP is just $US226 a year and life expectancy 55, that money could provide the equivalent of 39,000 new teachers or 17,000 nurses, according to the aid group.”36

December 2015: Matildah Mkandawire from Citizens for Justice wrote: “In August this year, Citizens for Justice and Action Aid Malawi, with support from the Tilitonse Fund, organized an interface meeting with the local communities, government representatives at district level and Paladin representatives. The aim of this meeting was to discuss the concerns of the community regarding the failure of Paladin to stick to the agreements in the MOU. Paladin cancelled with us at the 11th hour claiming they needed a formal letter of invitation and not the one they got from the community. The meeting had to go ahead without them although this left the community furious as the issues they wanted to raise were key to their health and sanitation, environmental health and social well-being. The lack of clean water, and the delay in providing educational and health facilities as agreed, spoke volumes of the company’s lack of responsibility for the community it operates in.”37

2016: A human rights body in Malawi sued Paladin Africa Ltd for alleged damage the Kayelekera mine has caused to some miners and the surrounding communities in Karonga district. The Centre for Human Rights and Rehabilitation accused Paladin of not prioritising the welfare of its employees and the community.38

16 June 2016: Security guards at the mothballed Kayelekera mine downed tools over poor working conditions.39

September 2016: Human Rights Watch released a detailed report on mines in the Karonga region of Malawi, including the Kayelekera uranium mine: “Using Karonga district in northern Malawi as a case study, the report documents how Malawi currently lacks adequate legal standards and safeguards to ensure the necessary balance between developing the mining industry and protecting the rights of local communities. It examines how weak government oversight and lack of information leave local communities unprotected and uninformed about the risks and opportunities associated with mining.”40

20 December 2016: Eight Tanzanians were arrested while travelling to participate in a fact-finding mission of the Kayelekera mine. They are from the area where the Mkuju River uranium mine is planned in Tanzania. They were accused of trespassing, spying and working as foreign agents. They were denied bail and held in sub-standard conditions; their legal access was impeded and their legal team harassed with death threats and the mysterious disappearance of their laptops; their legal defence team was prevented from fully cross-questioning witnesses; and the trial was postponed on six occasions, each time disrupting the defence team that travelled from Lilongwe and Dar-es-Salaam. In April 2017, after almost five months in detention, the eight people were convicted of Criminal Trespassing and carrying out a reconnaissance operation without a permit, and given suspended four-month sentences.41

January 2017: Paladin and the Malawi government rejected requests to disclose the results of water monitoring performed in the surroundings of the Kayelekera mine.42

References:

  1. WISE-Uranium, ‘Paladin Energy Ltd Hall of Infamy’, www.wise-uranium.org/ucpalhi.html
  2. ‘Paladin’s social and environmental record, https://wiseinternational.org/nuclear-monitor/847/nuclear-monitor-847-21-july-2017
  3. http://parlinfo.aph.gov.au/parlInfo/search/display/display.w3p;query=Id%3A%22committees%2Fcommjnt%2F12858%2F0004%22
  4. Patrick Bond, 24 Dec 2006, ZNet.

Paladin persecutes Australian photojournalist in Malawi

  1. Background on Recent Developments at the Kayelekera Uranium Mine, 2007, www.minesandcommunities.org/article.php?a=1429
  2. MUA News, 15 Jan 2007, ‘Australian Company Uses Malawian Police Against Critics’, http://mua.org.au/news/general/malawi.html
  3. Mineral Policy Institute, March 2007, ‘Paladin Resources Kayelekera Uranium Project in Malawi, Africa would not be approved in Australia, concludes independent reviewers’, http://web.archive.org/web/20080719214944/http://www.mpi.org.au/campaigns/waste/malawi/
  4. Allgemeine Zeitung, 31 March 2008; www.wise-uranium.org/umopafr.html#LANGERH
  5. Namibian, 25 April 2008; www.wise-uranium.org/umopafr.html#LANGERH
  6. Will Fitzgibbon, Martha M. Hamilton and Cécile Schilis-Gallego / International Consortium of Investigative Journalists, 10 July 2015, ‘Australian Mining Companies Digging A Deadly Footprint in Africa’, www.icij.org/project/fatal-extraction/australian-mining-companies-digging-deadly-footprint-africa
  7. Nyasa Times, 18 March 2009; The Nation, 19 March 2009.
    12. IPS, 24 August 2009.
  8. Tom Hyland, 20 Sept 2009, ‘Miner accused on slack safety’, www.smh.com.au/world/miner-accused-on-slack-safety-20090919-fw3q.html
  9. Sydney Morning Herald, 8 Oct 2009; www.wise-uranium.org/umopafr.html#MW; www.wise-uranium.org/umopafr.html#KAYELEKERA
  10. Nyasa Times, 25 Sep 2010; www.wise-uranium.org/umopafr.html#MW
  11. Nyasa Times, 19 June 2011; www.wise-uranium.org/umopafr.html#MW
  12. The Namibian, 17 Aug 2011; www.wise-uranium.org/umopafr.html#LANGERH
  13. Bruno Chareyron, 2015, ‘Impact of the Kayelekera uranium mine, Malawi’. EJOLT Report No. 21, www.ejolt.org/wordpress/wp-content/uploads/2015/02/150222_Report-21.pdf
  14. Nyasa Times, 11 May 2012; www.wise-uranium.org/umopafr.html#MW; www.miningweekly.com/article/kayelekera-production-back-on-track-2012-05-16
  15. http://antinuclear.net/2013/09/02/ashurst-paladin-attack-this-website-with-legal-threats/
  16. African Forum and Network on Debt and Development, 2013, ‘The Revenue Costs and Benefits of Foreign Direct Investment in the Extractive Industry in Malawi: The Case of Kayelekera Uranium Mine’, www.afrodad.org/index.php/en/resource-centre/publications/category/22-economic-governance.html
  17. The Namibian, 2 July 2013; www.wise-uranium.org/umopafr.html#LANGERH
  18. 22 July 2013, ‘End of mission statement by the Special Rapporteur on the right to food’, www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=13567&LangID=E
  19. Paladin Energy Ltd July 31, 2013; Esmarie Swanepoel, 31 July 2013, ‘Fatality at Paladin mine’, www.miningweekly.com/article/fatality-at-paladin-mine-2013-07-31
  20. Nyasa Times, 5 March 2013.
  21. Esmarie Swanepoel, 3 Oct 2013, ‘Electrical accident injures three at Langer Heinrich’, www.miningweekly.com/article/accident-injures-3-at-langer-heinrich-2013-10-03
  22. www.wise-uranium.org/umopafr.html#LANGERH
  23. 17 Feb 2014, ‘Product Shipment Incident near Kayelekera Mine, Malawi’, https://finance.yahoo.com/news/paladin-energy-ltd-product-shipment-120000130.html
  24. Namib Times, 7 Oct 2014; www.wise-uranium.org/umopafr.html#LANGERH
  25. Environmental News Service, 25 Nov 2014, ‘Uranium Mine Sludge Discharge Permit Threatens Lake Malawi’, http://ens-newswire.com/2014/11/25/uranium-mine-sludge-discharge-permit-threatens-lake-malawi/
  26. The Namibian, 10 July 2015; www.opm.gov.na; www.wise-uranium.org/umopafr.html#LANGERH
  27. Esmarie Swanepoel, 10 Feb 2015, ‘Kayelekera no threat to environment – Paladin’, www.miningweekly.com/article/kayelekera-no-threat-to-environment—paladin-2015-02-10
    Esmarie Swanepoel, 7 Jan 2015, ‘Paladin reports spill at Malawi mine after minor storm’, www.miningweekly.com/article/paladin-reports-spill-at-malawi-mine-after-minor-storm-2015-01-07

Sarah-Jane Tasker, 8 Jan 2015, ‘Paladin Energy alerts ASX to spill at Malawi uranium mine’, www.theaustralian.com.au/business/mining-energy/paladin-energy-alerts-asx-to-spill-at-malawi-uranium-mine/story-e6frg9df-1227177696428

  1. New Era, 20 Feb 2015; www.wise-uranium.org/umopafr.html#LANGERH
  2. www.wise-uranium.org/umopafr.html#MW

Sarah-Jane Tasker, 8 Jan 2015, ‘Paladin Energy alerts ASX to spill at Malawi uranium mine’, www.theaustralian.com.au/business/mining-energy/paladin-energy-alerts-asx-to-spill-at-malawi-uranium-mine/story-e6frg9df-1227177696428

  1. ActionAid, 17 June 2015, ‘An Extractive Affair: How one Australian mining company’s tax dealings are costing the world’s poorest country millions’, www.actionaid.org/sites/files/actionaid/malawi_tax_report_updated_table_16_june.pdf
  2. Heath Aston, 11 July 2015, ‘Australian miner accused of dodging tax in world’s poorest country’, www.theage.com.au/federal-politics/political-news/australian-miner-accused-of-dodging-tax-in-worlds-poorest-country-20150710-gi6uzv.html
  3. Matildah M. Mkandawire, 17 Dec 2015, ‘Uranium mining in Malawi: the case of Kayelekera’, Nuclear Monitor #816, www.wiseinternational.org/nuclear-monitor/816/uranium-mining-malawi-case-kayelekera
  4. Norbert Mzembe, 22 June 2016, ‘Malawi: Paladin Africa Sued for ‘Gross Damage”, www.minesandcommunities.org/article.php?a=13429

Capital Radio Malawi, 22 June 2016, www.capitalradiomalawi.com/news/item/6349-paladin-africa-sued-for-gross-damage 
www.wise-uranium.org/umopafr.html#MW

  1. Nyasa Times, 17 June 2016; www.wise-uranium.org/umopafr.html#MW
  2. Human Rights Watch, 27 Sept 2016, ‘”They Destroyed Everything”: Mining and Human Rights in Malawi’, www.hrw.org/report/2016/09/27/they-destroyed-everything/mining-and-human-rights-malawi or www.hrw.org/sites/default/files/accessible_document/malawi0916_etr_web_1.pdf
  3. David Fig, 2 April 2017, ‘Why Malawi’s case against the Tanzanian eight is a travesty of justice’, https://theconversation.com/why-malawis-case-against-the-tanzanian-eight-is-a-travesty-of-justice-75555

Menschenrechte 3000 e.V., 28 Feb 2017, ‘Report on 8 Tanzanian Environmental and Human Rights Defenders arbitrarily detained in Malawi since 22. Dec. 2017’, www.uranium-network.org/images/pics/REPORT-MR3000-TUAM-update-1.pdf

Front Line Defenders, www.frontlinedefenders.org/en/case/8-tanzanian-environmental-defenders-convicted

www.wise-uranium.org/umopafr.html#KAYELEKERAVT

Malawi Times, 12 April 2017.

Bright Phiri & Nicely Msowoya, ‘REPORT on the continuation of court case against 8 Tanzanians detained in Malawi, on 13. and 14. February 2017’, www.wise-uranium.org/pdf/PhiriMsowoya17214.pdf

  1. BBC, 25 Jan 2017, ‘Fears of river poisoning in Malawi’, www.bbc.com/news/world-africa-38751257

www.wise-uranium.org/umopafr.html#MW