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Paladin resumes production at Malawi uranium mine
February 21, 2011 / 2:47 PM / 7 years ago

Paladin resumes production at Malawi uranium mine

LILONGWE, Feb 21 (Reuters) - Australia’s Paladin Energy Ltd (PDN.AX)PDN.TO said on Monday it had resumed production at its uranium mine in Malawi after a four-day shut-down caused by a fuel shortage.

The Kayelekera Uranium Mine in northern Malawi depends on diesel generators because of regular power outages in the southern African nation, which analysts say cost the economy an estimated $215 million a year in lost output.

“Regular diesel deliveries have resumed and scheduled plant maintenance which was brought forward was successfully completed,” the company said in a statement.

Malawi has been facing a serious fuel shortage because of a lack of foreign exchange resulting from low tobacco earnings and a high import bill for a subsidised fertilizer programme.

Last month, the company cut its 2011 output from the mine to 2.6 million pounds from 3 million because of the power disruptions.

Reporting by Mabvuto Banda, Editing by Ed Cropley

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