Uranium Mining: Whose Interest? Malawi Case

Slides:



Advertisements
Similar presentations
National Herbarium & Botanic Gardens of Malawi
Advertisements

International investments in agricultural production David Hallam Deputy Director, Trade and Markets Division, FAO.
GHANA STOCK EXCHANGE Bringing Companies and Investors Together. Presentation at ASEA Conference CAIRO – EGYPT 10 – 12 Sept By EKOW AFEDZIE GENERAL.
Slide 1 Role of the Auditor General in Extractive Industry Presented By: Anna O. Chifungula.
BY S. U. YAMUSA II AND A. H. ANSARI
Who Owns Vermont’s Rocks: A case for collecting economic rent to offset the depletion of nonrenewable mineral deposits Current Management Structure Act.
Corporate Governance A view from the private equity world John Mackie Chief Executive.
The FCTC and the Pattern of Unmanufactured Tobacco Exports in Malawi Donald Makoka. Centre for Agricultural Research and Development LUANAR University.
COUNTRY EXPERIENCE TANZANIA 8/25/ Tanzania Experience Outline : An Overview Deposit Insurance Board of Tanzania DIB Experience Lessons and Challenges.
MINERAL RESOURCES DEVELOPMENT POLICY(2013) 14 th February 2014 MINISTRY OF MINES, ENERGY AND WATER DEVELOPMENT 1.
1 Palabora Mining Company Limited (“PMC”) The effect of suspending section 45 on PMC’s BEE transaction 21 June 2011.
HOUSING INCENTIVE POLICY February 20, 2010 Presentation to Area Banks.
Revisiting the Economic Impact of the Fayetteville Shale Kathy Deck, Director Center for Business and Economic Research June 7, 2012.
MINERALS CORPORATION The Beginning of Chapter 2… June 2009.
Zambia Overview Cont. Zambia Overview Zambia has an estimated Population of 12 – 14 million people and the following are some major economic indicators.
CASE CLINIC: ZAMBIA AND DEBT OVERSIGHT HON VINCENT MWALE, MP.
DEATH & TAXES The true toll of tax dodging Exposing the scandal of poverty and challenging systems which make people poor.
Tax Incentives for Clean Coal Development in Australia Bill Butcher School of Business Law and Taxation, University of New South Wales, Sydney, Australia.
Extractives, Tax & Africa’s Development ITJA 2015 John GBENAGNON, Assistant of the Director of the Francophonie Numerique (OIF) FEMNET Member Global Youth.
Parramatta Economic Development Board Meeting of 9 June, 2004.
Fulfilling the Education Promise Michael J. Borges, Executive Director, New York State Association of School Business Officials Joint Legislative Budget.
Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed.
1 Banco Central do Brasil Foreign Direct Investment in Brazil Banco Central do Brasil Foreign Direct Investment in Brazil October 2001 Armínio Fraga.
Market Update ASLF 2016 Antonio Blázquez D. Securities Country Manager.
COMPETITION ASSESSMENT IN MALAWI TRANPORT SECTOR The Executive Director CFTC, Mpikisano House, Area 4, P/Bag 332 Lilongwe 3, Malawi Phone: /7.
Chapter 17 How External Forces Affect a Firm’s Value Lawrence J. Gitman Jeff Madura Introduction to Finance.
INQUIRY INTO THE NSW PLANNING FRAMEWORK NSW MINERALS COUNCIL OPENING STATEMENT 17 AUGUST 2009.
Federal Funding Overview and Risks
Outline: Introduction
Crude Oil Dynamics With Matthew Baller Title goes here.
PRELIMINARY BRIEFING: KUWAIT, SWITZERLAND, NETHERLANDS AND LUXEMBOURG
An International Sports Event: Atlanta; 1996
Healthier, Wealthier Cities: Climate Action in Cities
Damitha Kumarasinghe Director General
Employment Outlook for Ontario: Opportunities in the Resource Sector
Chapter 2 Section 4 Modern Economies
Influencing the Political Environment
Investing: Taking Risks With Your Savings
The Irish Economy: Prospects in Uncertain Times
NS4301 Summer Term 2015 China Devaluation: Implications for Africa
MEJN – Who are we? MEJN is a coalition of civil society organizations committed to championing participatory economic governance for poverty reduction.
International Economics By Robert J. Carbaugh 9th Edition
Pan-African Parliament Conference Anne Mayher, IANRA • 23 August 2017
AIM: How can U. S. trade impact us as consumers
Prosperity for Generations
Energy Management System (EnMS) Management Review
Malaysia - Trading for the Future
Presentation by Leonard Mandishara
Marcus Claridge Director Energy and Water October 2017
The competition enforcement in regulated sectors
Principles of Business, Marketing and Finance
International Economics By Robert J. Carbaugh 9th Edition
The importance of administrative data in the era of SDGs
ECONOMIC GROWTH IN DEVELOPING NATIONS
[ 7.3 ] Economic Growth Learning Objectives
ZAMBIA REVENUE AUTHORITY
MALAWI REVENUE AUTHORITY
Unit 8 Chapter 7, Sections 2-4
VIETNAM – AN ATTRACTIVE DESTINATION FOR INVESTORS
PRESENTATION TO IOSCO MADRID, SPAIN TRANSITION TO IFRS: CHALLENGES FOR SUPERVISORS A SOUTHERN AFRICAN PERSPECTIVE BY JEFF VAN ROOYEN CEO – URANUS GROUP.
The Role of Government in Business
SADC Protocol on Fisheries
CORRUPTION AND DEVELOPMENT SIMAD UNIVERSITY LECTURER: MOHAMED SHEIKH AHMED.
Way Forward By Ruth Wachira.
It’s Inevitable… TAXES!
London Business School and City University, London
LOAD SHEDDING; IMPACT ON BUSINESS ACTIVITIES
The second phase of industrialization
Tax Justice Conference NAIROBI 12th -14th March 2019
CHAPTER 1 CHAPTER 1: INTRODUCTION TO PUBLIC FINANCE (INDIVIDUALS AND GOVERNMENT) Prepared by Professor: Mr. SOEM Pheakkdey, (BA, MFI, and MPS) Telephone:
Presentation transcript:

Uranium Mining: Whose Interest? Malawi Case If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format. Investigating Extractive Industry Regional Conference Lusaka Zambia By Rex Chikoko 13-15 August 2012

Background Kayelekera Uranium Mine (KM) is located in northern Malawi, 575km north of the capital city, Lilongwe. Uranium was first discovered in the 1980s Central Electricity Generating Board of Great Britain (CEGB) The study then indicated the project was uneconomical and was abandoned in 1992. In February 2007 Paladin Africa Limited (PAL) ,a subsidiary of Paladin Energy, took over and offered 15% of equity to the Government of Malawi under the terms of the Development Agreement. If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

‘Malawi losing out in Kayerekera Mine deal’ The story was published in May, 2011 in Malawi News, one of the weekly newspapers in Malawi During the course of investigating the story a lot of information was uncovered albeit some of the information was sourced unofficially Some of the discoveries included: If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Weak Law and Poor Governance No legal and policy framework regulating the uranium mining industry in Malawi Mines and Minerals Act, the Uranium mining legislation the Atomic Energy Bill and Explosives Act If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Malawi, Paladin deal Paladin agreed to invest MWK60 billion (US$400 million) Paladin agreed to spend MWK2.25 billion (US$15 million) on community development projects including improving water system. Paladin agreed to build or upgrade schools and teacher housing in Karonga and improvements to the Karonga District Hospital. The company has also committed to spend MWK240 million (US$1.6 million) upgrading Karonga Airport. If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Malawi promises Malawi offered tax exemption as an incentive Paladin to pay 27.5 percent instead of 30 percent corporate tax A 10 percent exemption on rent tax. Royalties — ordinarily 5 percent — were dropped to 1.5 percent for the first three years and 3 percent thereafter. The company will also be exempted from paying value added tax for up to 10 years. If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Status as in 2011 More than 2 million lbs of uranium oxide (U3O8) has been exported since the commencement of production. In a full operating year, Kayelekera will produce 3.3 million lbs of uranium oxide (U3O8) per year In a full operating year, Paladin will pay more than MWK1.4 billion (US$9.5 million) in royalties and various taxes (payroll, non-residents tax and withholding tax) to the Government of Malawi. If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Status as in 2011 (cont’d) This means Malawi, despite gaining expected US$45 million in taxes and royalties from the mine per year, will lose about more than US$120 million in various taxes, due to the terms agreed with Paladin. The Malawi government traded a 15 percent stake in the project in exchange for favourable tax rates for the company. If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Way forward Next course of action for the Kayelekera Uranium Mine: There is a growing call for Economic impact assessment to ascertain whether the mine is benefiting local communities as the cost of living has increased ten-fold in the area; A thorough study indicates somehow that the mine is impacting on general health of the people surrounding the area Formulation of Independent monitoring of the uranium mining project and its effects on the community and the environment—training of local cadres to take part in the monitoring; If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Way forward (cont’d) Tax justice campaign to curb capital flight and transfer pricing; Continued community awareness of the impact of the uranium project; Lobbying for stringent mining policy and legal frameworks or the industry to export best practical technology from Australia and Canada If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

What newspapers said on August 9, 2012 If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Role of journalists Government and Paladin insist: “The terms of the Development Agreement signed between Government and Paladin are confidential” Officials are unwilling to provide information on record. Inconsistent information available from sources Journalists have to take a strong stand to investigate the Kayerekera deal If another slide is needed, do not click “new slide”. Click “duplicate slide” to get the correct format.

Conclusion Malawi’s poor handling of the deal is putting the country at a very awkward position financially Risk the lives of many Malawians who are directly or indirectly exposed to radiation of the uranium

ZIKOMO!!! BY Rex Chikoko