Paladin Energy Ltd (TSE:PDN, ASX:PDN) sought to head off a public relations disaster on Monday relating to its Kayelekera mine in Malawi.
Reports in the media and blogs have suggested that water from a tailings facility at the mine has been released into the environment, but Paladin said the reports were untrue.
A series of major storm events over large areas of northern Malawi in early to mid-February and in early April delivered intense rainfall to the Kayelekera mine and the region generally, the company explained.
Rainfall run-off from these rains resulted in overflow and environmental release of some clean water from a rainfall run-off water catchment pond at Kayelekera mine site early last week in accordance with the Environmental Impact Assessment and Environmental Management Plan.
Water inventory in the Kayelekera Mine tailings storage facility increased due to the heavy rainfall events; however, the freeboard levels remain within the approved operating design criteria and this facility continues to be actively monitored and managed, the company added.
The dual-listed uranium producer saw its shares slide 5.7% on Monday on the Australia stock exchange.