(Kitco News) - Paladin Energy (ASX: PDN, OTCQX: PALAF) yesterday announced the decision to return the Langer Heinrich uranium mine in Namibia to production.
According to the company’s statement, the Paladin Board has made the decision to return the Langer Heinrich uranium mine to production with first volumes targeted for the March quarter of CY2024.
Paladin said that the decision to restart production at Langer Heinrich is supported by strong uranium market fundamentals and continued progress on uranium marketing activities including the execution of a binding contract for the previously announced Tender Award.
The restart scope of work will focus on general repairs and refurbishment required to return the existing process plant to operational readiness, coupled with the delivery of process upgrades to increase throughput capacity and operational availability.
Importantly, the company noted that mobilization of the project workforce is well advanced with current activities focused on detailed engineering and design for process upgrades, material and equipment purchasing and the preparation for the commencement of construction works.
Paladin pointed out that total project capital expenditures have increased to US$118M on a 100% project basis (previous guidance is US$87M), primarily driven by recent inflationary pressures across the project supply chain, brought forward power and water infrastructure works and increased owners team costs.
However, the company said that with US$177.1M in unrestricted cash as at 30 June 2022, it is well positioned to deliver first production from the LHM, pursue further uranium marketing activities and advance the global exploration portfolio.
In its press-release, Paladin also noted that the Langer Heinrich mine’s minority shareholder, CNNC Overseas Uranium Holding Limited (25% ownership), is yet to finalize its funding decision.
Paladin Energy is an Australian listed uranium company focused on returning the Langer Heinrich uranium mine to commercial production in CY2024.
The Langer Heinrich mine is a globally significant, long-life operation, having already produced over 43Mlb U3O8 prior to operations being suspended in 2018 due to low uranium prices.
Beyond the Langer Heinrich Mine, the company also owns a large global portfolio of uranium exploration and development assets.
