CHAMWE KAIRA
Paladin Energy, which owns the Langer Heinrich mine in the Erongo Region, told investors it has secured 11 offtake agreements with tier-one industry counterparties.
During an investor conference call, the company said 88% of the mine’s total production will be exposed to market-related prices.
It also confirmed that the mine has already contracted for 50% of its production.
“Strong demand for nuclear energy is driven by global decarbonisation and energy security,” it said.
China’s CNNC, a major shareholder in Paladin, is one of the world’s largest uranium consumers.
“Chinese utilities are expected to become the largest consumers of uranium by 2028,” the company said.
There are currently 440 proposed nuclear plants under construction worldwide.
Nuclear energy is the second-largest source of global clean energy, accounting for nearly half of the clean energy supply in the US.
At COP28 and COP29, 31 countries, including the US, Canada, the UK and France, pledged to triple nuclear power capacity by 2050.
Paladin said western utilities have been securing enrichment and conversion services and are now shifting to the procurement of uranium oxide.
The company sees itself well-positioned to benefit from this evolving contracting cycle, backed by ongoing production at Langer Heinrich Mine.
In the first half of the 2025 financial year, Langer Heinrich Mine produced 1.3 million pounds of uranium oxide. December was its strongest month, with production reaching 308,604 pounds and an average plant recovery rate of 88% for the quarter.
Paladin signed four new offtake contracts in the first half of 2025, bringing the total to 11 agreements with tier-one global customers.
As of 31 December 2024, the company held US$166 million in unrestricted cash and short-term investments.
Langer Heinrich remains on track to meet its revised production guidance of 3 to 3.6 million pounds of uranium oxide for the 2025 financial year.
The mine resumed commercial production in March 2024 after an extensive repair and refurbishment program. It has ore reserves of 83.4 million pounds of uranium oxide, with a projected 17-year mine life.
