Paladin Energy (ASX: PDN) says it’s begun producing and drumming uranium concentrate at its Langer Heinrich mine in Namibia, adding it would now focus on ramping up operations and building a finished product inventory.
The Western Australia-based miner said its first uranium concentrate production was achieved and packed into metal drums for shipping to customers on March 30.
As part of the transition to production, the company’s chief operating officer, Paul Hemburrow, will take on responsibility for all activities at its 75%-owned mine, Paladin said.
Langer Heinrich is located in the Namib Desert 80 km east of the principal seaport of Walvis Bay and 40 km southeast of Namibia’s – and the world’s – longest-running open pit uranium mine, China National Uranium Corp.’s Rössing.
Achieving first production at Langer Heinrich is an important milestone for Paladin, chief executive officer, Ian Purdy, said in a statement.
He noted the company will update the market on production guidance for the mine for fiscal 2025 in July.
A 50+ year history
Langer Heinrich was discovered in 1973 and Paladin Energy took over the asset in August 2002, kicking off production in 2007 with an initial capacity of 2.7 million lb. of uranium oxide per year.
This capacity was later expanded to 3.7 million lb. in 2009 and 5.2 million lb. in 2012. However, due to a sharp decline in uranium prices in the following years, the company axed production in November 2016. Langer Heinrich was placed under care and maintenance in May 2018.
Rising prices for the radioactive material in the last 10 months have pushed several miners to reopen mines and resume activities at stalled projects. Leading uranium producers have rushed to meet the demand not only because of favourable prices, but also in light of increased interest from governments looking for nuclear power solutions to meet emissions targets.
The price of the radio atomic element has experienced a significant upturn after the NYMEX uranium 1st futures contract price hit a new high of US$106.40 a lb. on Feb 1. The material is now sitting at US$87.20 a lb. as of April 1 — still well above last year’s average price of $US66.60 a pound. The last time that contract was above US$100 was in August 2007.
The International Atomic Energy Agency predicts that by 2040, the global demand for uranium will exceed 100,000 tonnes per year, which is more than double the present worldwide production.
Currently, two-thirds of the world’s uranium comes from Kazakhstan, Canada and Australia.
Be the first to comment on "Paladin Energy kicks off uranium production at restarted mine in Namibia"