Paladin rejects toxic waste claim

The processing plant at Paladin Energy's Kayelekera mine in Malawi.

Paladin Energy has rejected allegations it has discharged toxic waste from its Kayelekera uranium mine in Malawi into a local river.

In a statement to the ASX, the company said recent reports, sourced from local non-government organisations and individuals openly hostile to the company, contained blatant falsehoods and misleading statements intended to cause alarm and distress to local communities in Malawi.

"Paladin emphatically refutes these accusations and will pursue legal steps unless these perpetrators of gross misinformation cease their dissemination of irresponsible and misleading fabrications," the company said.

Paladin uses captured run-off water in during the production and processing of uranium ore. The water is then recycled.

The company has previously announced it planned a controlled release of surplus water into the local river system early this year, during the monsoonal wet season.

However Paladin insisted the released water would meet Malawi and internationally-recognised discharge standards including the World Health Organisation's drinking water guideline for uranium content.

"The controlled water release is necessary to avoid any possible unplanned and uncontrolled discharge of run-off water contained in storage ponds at Kayelekera during the period of care and maintenance," the company said.

Paladin also noted no water had been treated or released to date because of relatively light and infrequent rainfall in northern Malawi during the wet season to date.

"When water treatment and release commences, Paladin will undertake constant environmental monitoring of the process, which will also be monitored and regulated by the Government of Malawi," the company said.

Paladin shares were off half a cent, or 1.35 per cent, to 36.5 cents at 9.20am.