Langer Heinrich Mine to return to production
Australian listed uranium company, Paladin Energy Limited this week announced the decision to return the Langer Heinrich Mine, to production.
The Paladin Board has decided to return the Langer Heinrich Mine (LHM) to production with first volumes targeted for the March quarter of CY2024, according to a statement released on the company’s website on Tuesday.
According to the statement, the decision, to restart production at the Langer Heinrich Mine is supported by strong uranium market fundamentals and continued progress on uranium marketing activities including the execution of a binding contract for the previously announced Tender Award.
The restart scope of work will focus on general repairs and refurbishment required to return the existing process plant to operational readiness, coupled with the delivery of process upgrades to increase throughput capacity and operational availability, the statement added.
According to Paladin, mobilisation of the project workforce is well advanced with current activities focused on detailed engineering and design for process upgrades, material, and equipment purchasing, and the preparation for the commencement of construction works
“Paladin has committed to providing 100% project funding, if required, via priority loans to be repaid in priority to all outstanding shareholder loans. The Langer Heinrich Mine’s minority shareholder, CNNC Overseas Uranium Holding Limited (25% ownership), are yet to finalise their funding decision,” the statement said.
Paladin Chief Executive, Ian Purdy said, “with the strength of the company’s uranium offtakes and the continuing strong uranium market fundamentals, Paladin has decided to return the globally significant Langer Heinrich Uranium Mine to production.
“The increase in the capital required to restart operations reflects a combination of recent inflationary pressures and the bringing forward of key work packages to ensure the long-term reliable supply of power and water to the site. We have also strengthened our project execution team via the appointment of leading African EPCM contractor ADP Group to ensure the successful delivery of the Langer Heinrich Mine into production,” he added.
Purdy said the Langer Heinrich Mine remains a low-risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all our stakeholders.
Meanwhile, as part of the decision to commence restart activities at the LHM, Paladin has identified that the capital cost to restart production has increased from US$87 million to US$118 million.