Payment from standby letters of credit (L/Cs) may be sought if community and official concerns continue to mount over fears that Uranium Miner Paladin Africa Limited may be discharging toxic waste into Lake Malawi.

Communities living along the northern part of Lake Malawi in Karonga district have launched a campaign to stop Paladin from dumping waste that may be responsible for the death of many fish.

Meanwhile, four government agencies have issued a joint press statement saying they would be launching an investigation to determine what is causing the fish to die.

Performance bond

Paladin has a US$10 million Environmental Performance Bond with two commercial banks in Malawi to pay for several eventualities should they arise.

The bond, in the form of irrevocable standby L/Cs, guarantees payment for events such as water and environment contamination and the eventual clean-up of Paladin's mining facilities.

Community concerns

Many people and livestock in rural Malawi rely on rivers and Lake Malawi for water and fish for consumption and commercial purposes.

Some communities blame the company for deliberately dumping waste into two rivers that discharge into Lake Malawi.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.