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Article

26 Jul 2013

Author:
ABC

Malawi missing out on fair share of mining benefits says UN Special Rapporteur

The UN's Special Rapporteur on the Right to Food says the impoverished African nation of Malawi is losing out on millions of dollars because of the tax arrangements with Australian mining company Paladin. Olivier de Schutter has told PM that poor countries aren't able to negotiate fair deals with foreign mining companies...The criticism is the deals could have been much more equitable, and could have allowed Malawi to use its resources better for the benefit of the population...For its part, Paladin is...saying he has his facts wrong. Rick Crabb, the chairman of Paladin Energy Limited, says the UN's assertion that Malawi is missing out $200 million worth of tax revenue is based on incorrect assumptions, and the country is in fact doing well out of the deal.