ASX-listed Paladin Energy said its Langer Heinrich uranium mine in Namibia is on track to restart operations in the first quarter of 2024 and within a budget of N$2.1 billion.
In a quarterly report on Thursday, the company said a workforce of over 600 personnel had now been mobilised to site, with work at the project some 40% complete at the end of the quarter.
“Paladin continues to progress restart activities at the Langer Heinrich mine in Namibia. The work executed to date, combined with our well-defined pathway to production and on-site project execution team ensures that the project remains on time and budget with first production targeted for first quarter of 2024,†Paladin CEO Ian Purdy said in a report for the three months to March.
“With a strong uranium contract book and a world-class asset in the Langer Heinrich mine, Paladin remains well positioned to deliver long-term value for our stakeholders.â€
The company, which currently has five uranium offtake agreements with leading counterparties in the USA, Asia and Europe, said it was finalising an outstanding tender award.
“Paladin has a stated strategy to secure contracts ahead of production. These contracts range in duration and pricing, and provide base-escalated, fixed-price and market-related pricing mechanisms. Along with the market-related contract in place with CNNC, Paladin will retain significant upside exposure to the strengthening uranium market fundamentals.
“Paladin has finalised contract negotiations on the final outstanding tender award and expects the offtake agreement to be executed during the current quarter,†reads the report, adding that commercial negotiations with conversion facilities and shipping companies had commenced ahead of the company’s return to production.
The company’s cash expenditure for the quarter under review was N$337.3 million (US$18.7 million).
“The company will maintain its corporate spending discipline, whilst restart activities at the Langer Heinrich Mine progress and to support operational readiness and uranium marketing,†the report said.
Langer Heinrich project’s life-of-mine production was estimated at £77.4 million over a 17-year mine life, at an estimated C1 cost of $27.40/lb.
The restart plans come after Langer Heinrich mine was placed under care and maintenance in 2018 due to a decline in uranium market conditions.
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