Australia’s Paladin Energy (ASX: PDN) has resumed operations at its Langer Heinrich uranium mine (LHM) in Namibia, following a planned shutdown of the mine plant in November to implement operational upgrades.
Among the improvements, Paladin built an on-site water storage facility designed to provide a buffer against potential future water supply disruptions. This upgrade is particularly relevant during Namibia’s hot season, which runs from October to April, when water demand peaks.
Paladin said it will provide an update on the plant’s performance following the upgrades in its December quarterly report, slated to be released on Jan. 22, 2025.
Discovered in 1973, the Langer Heinrich mine was acquired by Paladin Energy in August 2002. Production began in 2007 with an initial capacity of 2.7 million lb. of uranium oxide per year. This capacity was subsequently expanded to 3.7 million lb. in 2009 and 5.2 million lb. in 2012.
A sharp decline in uranium prices in the following years forced the Western Australia-based miner to cut production in November 2016. Langer Heinrich was placed under full care and maintenance in May 2018.
In 2022, Paladin decided to restore Langer Heinrich to production, achieving first output in late March this year.
The mine is situated in the Namib Desert, approximately 80 km east of the principal seaport of Walvis Bay and 40 km southeast of China National Uranium Corporation’s Rössing mine, the world’s longest-running open-pit uranium operation.
Demand revival
Rising prices for the nuclear metal this year 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.
While prices have fallen in the last two weeks, they are expected to rebound in 2025 on supply shortages, nuclear energy’s promise for clean energy, and president-elect Donald Trump’s America-first security stance.
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.
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