Paladin Energy cuts 110 jobs in Malawi's Kayelekera mine

Info2As the Nyasa Times reported today, the Australian uranium mining company Paladin Energy has let go 110 employees. This came as a surprise, because in the last quarter of 2012, uranium output of the Kayelekera Mine jumped 20.9 percent.

Nyasa Times cites Greg Walker of Paladin: "We have reviewed staff numbers and are retrenching 100 national employees. [...] While production has gone up, the uranium price has not; hence Kayelekera continues to operate at a loss. [...] We had warned government that this situation was unsustainable and would lead to job losses unless the uranium price improved, which it has not."

The firms job cuts were related to the drop of uranium prices on the world market, making business at the Kayerekela Mine no longer profitable - even at a 20.9 percent higher rate of output. This is especially tragic for the local community, which gave in to Paladins mining plans in hope of improving their economic situation.

[Nyasa Times]