CHAMWE KAIRA
Paladin Energy has revised its 2025 production guidance at Langer Heinrich Mine to 3 to 3.6 million pounds (previously 4 to 4.5 million pounds).
The company said the revision was as a result of the lower-than-expected production results for October and ongoing challenges and operational variability experienced to date in ramping up production at the Langer Heinrich Mine.
Paladin noted that the increased range of potential production outcomes will have a material impact on the company’s unit operating costs and the realised price for uranium sales and forecast capital expenditure will be reassessed given the LHM operational performance to date.
The company expects production to be higher in the second half of 2025 as the company continues to work through the current challenges encountered at the LHM to date in ramping up operations.
October production (186 667 pounds) was lower than planned primarily due to continued variability in the stockpiled ore processed.
This resulted in a lower-than-planned average feed grade for the month and disruptions to the supply of water from NamWater, which restricted the throughput volume of ore tonnes processed through the plant.
The company reported an improvement in average recoveries for the month (approximately 87%), partially offsetting the challenges with throughput and grade variability during October.
“A planned shutdown, which will allow for various improvements and operational upgrades to be implemented at the LHM, is scheduled for the second half of November 2024 and is expected to run for approximately two weeks.”
During the shutdown, the water storage facilities at the LHM are expected to be filled and provide a
buffer against potential future water supply disruptions (particularly during the summer when water demand is expected to peak and supply disruptions to water sourced from the nearby Swakop River and from NamWater are more likely to occur).
Paladin disclosed that NamWater is continuing to optimise the operation of its base and booster stations with improvements expected to enable additional pipeline capacity and a more reliable water supply to the LHM.
The LHM is approximately seven months into a planned 21-month ramp-up period. Production levels are expected to increase as the overall ramp-up programme is progressed and due to the processing of higher-grade mined ore, which is expected to commence in the second half of 2025.
“The company remains confident of achieving a production run rate of 6 million pounds per annum at the LHM by the end of 2025.”
