B Y P A T R I C K M E D I U S N Y I R E N D A

E N V I R O N M E N T A L A F F A I R S D E P A R T M E N T , M I N I S T R Y O F N A T U R A L R E S O U R C E S ,

E N E R G Y A N D M I N I N G , M A L A W I

URANIUM MINING IN MALAWI

OUTLINE

� Introduction

� History of Mining in Malawi

� Operations at Kayelekera Uranium Mining

� Rehabilitation Works

� Care and maintenance

� Conclusion

INTRODUCTION

� Malawi, located in southeast Africa, is known as 'the warm heart of Africa'.

� The word “Malawi” means frames of fire.

� Malawi is bordered by Tanzania, Mozambique and Zambia to the north north-east, east-south-west and west respectively.

� The country is 900km long, its width varies between 80km and 160km. The country's population is about 16 million.

� Malawi has a total surface area of about 118,000 square kilometers 20% of which is covered by Lake Malawi.

� Lilongwe, the capital of Malawi, is located in the country’s central region with a population of 978,700 (as of 2014).

� Malawi’s economy is mainly agro-based. Agriculturecontributes about 80% to the GDP.

� Major cash crops include: tobacco, tea, coffee,sugarcane and cotton.

� Mining sector contributes about 10% to the GDP butit is expected to increase to 20% by 2020.

History of Mining in Malawi

� Mining in Malawi started in the 1970s with emphasis oncoal for industrial use.

� There are two medium scale and several small scalemines for coal, all of which are located in the north ofMalawi.

� In the early 1980s exploration for other minerals wascommissioned.

� In 1981 deposit of uranium ore was discovered atKayelekera in the north.

� Gemstone mining has been done in the central andnorthern regions.

� Meanwhile, deposits of low grade uranium, rare earthelements,, niobium, zircon, tantalum and monazite havebeen discovered in many parts.

Uranium Mining

� There is only one for Uranium mine in Malawi. Themine is located at Kayelekera in the border district ofKaronga about 85 km from Tanzania border.

� Kayelekera Mine is located 52 km from Lake Malawi – Africa’s third largest lake.

� The mine is designed to give an annual production of3.3Mlb U3O8 from the processing of 1.5Mtpa ofsandstone and associated ores by grinding, acidleaching, resin-in-pulp extraction, elution,precipitation and drying to produce saleable product.

� Open pit mining commenced in June 2008 todevelop initial stockpiles, with the first blastoccurring on 24 July 2008. Commissioning began inJanuary 2009 with first production achieved midApril.

1997 : Acquisition of Kayelekera deposit

1997 – 2004 : Resource base exploration and waiting for uranium market to improve

2005 – 2007 : BFS, EIA completed. Development Agreement negotiated. Project Finance Secured.

2008 – 2011 : Establishing Kayelekera Mine

– Construction Phase (2008 – 2009)

– Production Ramp-up (2010 – 2011)

2012-14 : Full production (5 years after ` decision to mine).

Paladin (Africa) Limited is a Malawian company incorporated 01 August 2000.

Company ownership:

• Paladin Energy Ltd 85%

• Government of Malawi 15%

PAL holds ML 152 and one exploration licence in the north

• Four EPL applications

pending.

High rainfall area – water management is the key

environmental issue.

Open pit is 1 km long x 500 m wide and 100 m deep.

It contains 14Mt ore & 31 Mt of waste rock.

The Kayelekera Mine footprint is quite small, with

all facilities established within a compact area.

Final disturbed area will be 2.8 square km

when all dumps are constructed.

Run-offwater ponds

TSF

Freshwater pond

Plantsite

Camp

Pit

Dumps

� Safety and Health

� Health and safety remains a key focus of management and all employees

� Medical clinic is available on site

� Vector control,

� HIV/AIDS and malaria programs are maintained

� NOSA safety system is maintained

� Environment

� Environmental Management Plan has been developed and subjected to external peer review

� Radiation

� Radiation Management Plan will be continued.

Environmental Management Plans for KUM addresses:

� Surface water

� Groundwater

� Erosion

� Vegetation and flora

� Weed

� Fauna

� Non-mineral waste

� Hazardous materials

� Dust

• Air quality

• Noise and vibration

• Greenhouse gas

• Tailings

• Waste rock

• Fire

• Rehabilitation

• Biodiversity

Rehabilitation Works

� The operator developed Decommissioning and Rehabilitation Plans

� Environmental bond is in place to address issues of remediation and rehabilitation

� Currently the company is undertaking progressive rehabilitation to reduce the amount of work and costs at the end of the project

Care & Maintenance

� KUM is currently under care and

maintenance since April, 2014

� The decision was based on two factors:

� Continued depressed price for uranium oxide since March

2011 following the nuclear reactor damage caused by

Fukushima earthquake and tsunami; and

� High operational cost since the mine operates on diesel

generators and long distance to the port of export.

� Since all wastewater and storm water are recycled during milling, the status as at now (care and maintenance) if not checked, may result into unplanned overflows.

� This has necessitated a decision to treat the wastewater and discharge the treated effluent into the environment to reduce the volumes.

Options to Resolve Surplus Water at KUM

� A “do nothing” option would result in unplanned flows to the

environment – simply not an option

� This left only one practical option - to treat surplus water to an

acceptable standard for release to the environment

� Components of the existing uranium processing plant have been

converted into a water treatment plant

� The water treatment method is a conventional lime and barium

chloride application followed by solid-liquid separation, then

neutralisation with sulfuric acid and final mixing with local river

water

Water Management at KUM – Water Balance

Water Treatment Plant Development

� Laboratory trials commenced in March 2014� Results were very favourable – with the removal of all metals including U and Ra

� Full scale water treatment plant commenced in July 2014� Trials have been completed on RWP2 and blend of RWP2/TSF water

� Laboratory results have been confirmed

� Water treatment plant has been commissioned and is fully operational

Application to Discharge and Approvals Process

� Relevant legislation is the Water Resources Act 2013

� PAL engaged with the WRD to discuss situation and to review the

proposal

� WRD provided guidance and instruction on the proposal

� PAL submitted an application to discharge effluent into public water on

30/7/14

� The application was assessed by the WRD and the Technical Committee

(16/9/14) with a recommendation being made to the Minister

� The Minister has approved the recommendation (22/10/14)

� WRD personnel will accompany KM Environment Department personnel on sampling events

� Continuous automated controls in WTP that ensures that the treatment process is working – based on pH, out of specification measurements force plant to shut down

� Samples are analysed by internal and external laboratories

� Fully equipped on site laboratory, and a separate environmental lab with ICP-OES equipped

� Four hourly analysis of critical parameters of U and SO4 in the WTP

� Twice per shift (4 per day) analysis of key parameters in the discharge line to the Sere River at 3 locations for� pH, EC, TSS, Ca, SO4, U, Ra226, COD, DO

� Inline magflow meters to automatically measure volume

� 13 locations up and downstream of the discharge point

� All discharge criteria parameters analysed by KM site lab:

� Biweekly downstream of discharge point (4 locations)

� Weekly distant downstream of discharge point (2 locations)

� Monthly upstream of discharge point (7 locations)

� All discharge criteria parameters analysed by External Lab:

� Monthly all locations (16 locations)

� Additional parameters for confirmatory analysis by External Lab

� Monthly all locations (16 locations)

Conclusion

� Although Malawi is relatively new in uranium mining, there is still a need to ensure that the industry is properly regulated especially on prevention of creating legacy sites which are expensive to rehabilitate.

� Efforts by various institutions and RSLS in particular are appreciated as they provide Malawi with vital information and guidance on the subject matter.