CHAMWE KAIRA
Production activities have commenced with first ore feed into the Langer Heinrich Mine processing plant on 20 January 2024 following successful commissioning of the beneficiation circuit, the its majority owner, Paladin Energy said. Operation of the mine had been suspended in 2018 due to low uranium prices.
Paladin received export permits from the Ministry of Mines and Energy in Namibia for 2024. Paladin said it had no lost time injuries or reportable incidents during the six months ending 31 December 2023. Over two million hours have been worked on the Langer Heinrich Mine Restart Project without any serious injuries and with no reportable environmental incidents.
Paladin said the project is over 93% complete with final construction and ongoing commissioning activities continuing across the processing plant. Paladin continues to target first commercial production by the end of the first quarter of this year but notes that lower contractor productivity over the Christmas/New Year period may result in a delay to early second quarter of this year.
The company is forecasting total project capital costs of approximately US$125 million (previously US$118 million). The company said recruitment of approximately 90% of the operations team, with all critical roles filled with experienced personnel.
It said demobilisation of the contractor workforce has commenced with approximately 760 personnel on site in January, a significant reduction from the peak of 1200.
Paladin said continued progress of power and water capacity upgrades with completion of the NamWater pipeline booster upgrade works.
“The company also has flexible shipping arrangements and early payment terms with its largest customer, providing significant delivery flexibility and improved cash flow during the Langer Heinrich Mine operational ramp-up. Paladin successfully executed a non-material offtake agreement for the supply of uranium to an industry leading counterparty in Europe.”
Paladin has a geographically diverse offtake book, with seven offtake agreements executed with top-tier counterparties in the US, Europe and China.
“Paladin successfully executed commercial agreements with two Western conversion facilities and commercial negotiations with shipping companies are being finalised ahead of the company’s imminent return to production.”
The company held US$61.6 million of cash and cash equivalents as at 31 December 2023 (excluding restricted cash of US$1 million), and has no corporate debt at balance date. In January 2024 Paladin executed a US$150 million syndicated debt facility to provide capital flexibility.
Paladin Energy is an Australian listed, independent uranium company with proven operations performance over 10 years.
