Antinuclear

Background information on Paladin’s operations:

• Paladin has two deposits in WA, Manyingee on the Central West Coast and Oobagooma near Derby in the Kimberley. There is no bipartisan support for uranium mining in WA there is a state election in March 2013.
• Paladin is involved in a joint venture at Angela Pamela near Alice Springs which has been heavily contested and plans to mine were blocked by the previous NT Government.
• They have projects in Queensland which are also heavily contested and again there is no bipartisan support for uranium mining in Queensland.
• Paladin has two operating projects in Africa – Kaylekera in Malawi and Langer Heinrich in Namibia.
• Both Kaylekera and Langer Heinrich have been plagued with industrial actions, safety breaches, low wages, accidents, and claims of corruption and a lack of transparency.

Background on Paladin’s economic situation and the global nuclear industry:

• The CEO of Paladin this year earned $3.4 million. In part this amount was made by cashing in leave entitlements and selling shares – a move that indicates the terminal sickness of the company.
• Paladin has returned record losses to their shareholders over a number of years. This year they posted a $173million loss despite achieving a generous sales deal at the end of 2011 which has meant Paladin can sell uranium at US$52lb – well above the current spot price of US$40.1lb.
• Paladin have indicated that they will halt all projects and expansions at their uranium sites until the uranium price recovers to US$85
• Cameco, the world’s largest uranium miner, made a similar comment about the global uranium price, indicating its Kintyre project in WA would break even at US$65lb.
• Given a downturn in nuclear reactors globally, the oversupply and stockpiling of uranium in Japan and the launch of new uranium mining projects in Canada, there is little evidence to indicate any meaningful revival in the uranium price.
• Background on areas of concern with Paladin’s projects:
  • Paladin is looking to shave $60 – $80 million off their operating costs. While shareholders may welcome these cuts environmental and social justice groups are concerned about what corners will have to be cut.  Paladin’s mines in Africa have been plagued with industrial action, complaints of safety breaches, low wages and accidents. Any further cost cutting at these uranium mines could prove to be fatal.
  • Specific concerns about Paladin’s behaviour at the Kaylekera mine in Malawi:
    • Workers’ pay and conditions – low-paid workers were denied a 66% pay rise
    • A protest planned against the Kaylekera mine became controversial when Paladin convinced a youth group to halt the protest and paid for the group to promote the cancellation of the protest – enraging local communities.
    • In 2011 Robert Chasowa, an engineering student from the polytechnic college, made claims that Paladin were making large donations to the President of Malawi. Paladin denied the claims vehemently Robert died shortly after in suspicious circumstances. Paladin has denied any involvement.
  • Specific concerns about the environmental impacts at the Langer Heinrich miner in Namibia:
    • Water scarcity, supply and impact on the Namib world heritage national park where the mine is located.
    • Radioactive contamination in surrounding waterways.
    • Transparency.
    • It remains unclear which countries Paladin has trading ties with.
    • The lack of documentation on carbon emissions from Paladin’s operations.