Strong demand for nuclear energy

CHAMWE KAIRA 

The Namibian uranium industry continues to benefit from strong global demand for nuclear energy, driven by efforts to reduce carbon emissions and improve energy security.

Decarbonisation refers to reducing or eliminating carbon dioxide emissions from processes such as manufacturing and energy production.

Paladin Energy said in a presentation that nuclear energy is the second-largest source of global clean energy and produces almost no carbon emissions. In the United States, nuclear power supplies nearly half of clean energy.

During COP28 and COP29, 31 countries, including the US, Canada, the UK, and France, committed to tripling nuclear power capacity by 2050.

Paladin noted that artificial intelligence and data centres are increasing demand for clean energy from base-load sources.

Utilities have sourced over 90% of their uranium needs through term contracts in the past three years.

“Whilst term contract volumes have improved in recent years, contracted activity remains below replacement levels. Global nuclear utilities have one billion pounds of uncovered uranium requirements over the next decade.” 

In terms of term activity drives uranium pricing outlook, Paladin said Langer Heinrich Mine said contracts book leverages strong uranium market fundamentals offtakes secured with Tier-1 industry counterparties, seven in the US, three in Europe and two in Asia.

Paladin said the life of mine production contracted in 2025-2026 volumes is largely contracted with a mix of pricing mechanisms offtake with China National Nuclear Corporation (CNNC), one of the largest consumers of uranium in the world. The CNNC is a state-owned enterprise founded in 1955 in Beijing.

The Langer Heinrich Mine restarted commercial production in March 2024 after an extensive repair and refurbishment program and debottlenecking of the existing plant.

“Langer Heinrich Mine is in ramp-up, delivering commercial production volumes to customers. Currently, the mine is processing medium-grade stockpiles, transitioning to open-pit mining in mid-2025.”

The mine is a proven low-risk, conventional alkaline leach processing circuit with 83.4 million pounds of oxide ore reserves leading to a 17-year life of mine.

Paladin said advancing early commencement of the mining phase with the preferred mining contractor selected.

The company said the restart of Langer Heinrich was completed on time and within budget.

The mine produced 1.8 million pounds of uranium oxide in the first nine months since restarting.

Paladin delivered uranium under long-term contracts and reported positive cash flow from operations in the first half of the 2025 financial year.

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