Australian uranium producer Paladin Energy says it is on track for first uranium production from its re-started Langer Heinrich Mine, in Namibia by the first quarter of next year.
This comes as the ASX-listed company said in a presentation to investors on Wednesday that the mine restart was over 50% complete, with the project tracking on budget.
Paladin told investors that the company was targeting a £6 million-a-year production rate over the first seven years of operation during the open pit mining phase, while production was targeted at £3.3 million for the remainder of the project life during the stockpile phase.
The uranium producer said the first run-of-mine feed contracts are expected shortly and the contract mining tender is scheduled to be awarded by the end of the 2024 financial year.
The project’s life-of-mine production is estimated at 77.4 million pounds over a 17-year mine life, at an estimated C1 cost of US$27.40/lb.
In terms of employment, the company said over 90% of the over 900 project development teams are locals, including 90% of in-country key management positions.
The uranium company said through the construction phase, it has spent over 70% of the project spend to date locally, with the majority of the contractors awarded to locals.
Paladin is forecasting a total restart project capex of N$2.2 billion (US$118 million).
The miner expects the Langer Heinrich Mine to contribute at least 4% to global uranium production.
The Langer Heinrich Uranium Mine commenced the Environmental Clearance Certificate (ECC) renewal process, as the current ECC, which covers mining, processing, and related activities, is set to expire in August 2023.
The restart plans come after the Langer Heinrich Mine was placed under care and maintenance in 2018 due to a decline in uranium market conditions.
