Chamwe Kaira
Paladin Energy, which is in the process of reopening its Langer Heinrich Mine in the Erongo Region has spent US$66.2 million on various services in the country in the current financial year.
The company said in the sustainability report that during the 2023 financial year, there was no direct economic value generated from revenues, however economic value distributed and retained, which included operating costs, employee wages and benefits, payments to providers of capital, payments to government by country, and community investments totaled US$66.2 million.
Langer Heinrich already produced over 43 million pounds of uranium oxide over ten years prior to operations being suspended in 2018 due to low uranium prices. Paladin says it has spent US$118 million on its restart project.
With the planned reopening in the first quarter of next year, Langer Heinrich plans a 17-year mine life, with target production of six million pounds of uranium oxide per annum during peak production for a total life of mine production target of 77.4 million pounds.
There are currently 436 operable nuclear reactors in 31 countries, with 60 reactors under construction in 17 countries. An additional 110 reactors are planned and 321 reactors are proposed, as reported by the World Nuclear Association (WNA).
Paladin said the Russia-Ukraine war has had an adverse impact on European Energy prices and the global oil price which has led to increases in the cost of reagents, diesel and Heavy Fuel Oil (HFO). Inflationary pressures globally have also had an impact on the cost of other inputs. These increases have been partially offset by the depreciation of the Namibian dollar against the US Dollar and increases in the uranium price, the company said.
Paladin has secured a strong uranium offtake portfolio with foundation customers, and has offtake contracts executed with top tier counterparties in the US, Europe and China.
Paladin’s forecast production from the Langer Heinrich Mine will represent around 4% of annual global uranium production.
Nuclear energy provided approximately half of the USA’s carbon-free electricity in 2022. Chinese demand for uranium has continued to strengthen to support its commitment to nuclear energy, with Chinese demand expected to grow from 18 percent to 35 percent of global requirements by 2040.
