First ore feed at Langer Heinrich uranium mine after five years in care and maintenance
By Adolf Kaure.
Langer Heinrich uranium mine has achieved its first ore feed to the processing plant on 20 January and is expected to have its first commercial production by the end of the first quarter of this year.
This was announced through a Paladin Energy Quarterly Activities Report issued by the company on Thursday. The report indicates the activities and cash flow of Paladin Energy for the quarter ended on 31 December 2023.
Paladin Energy is listed on the Australian Stock Exchange and holds 75% interest in Langer Heinrich Mine.
“After more than six years of care and maintenance it is exceptionally pleasing to see production activities recommence at the Langer Heinrich Mine, with first ore feed to the processing plant achieved in January.”
“Executing a syndicated debt facility ahead of operations has been a key strategy for Paladin and will provide increased capital flexibility as we transition through ramp up and progress to full production at Langer Heinrich.”
With a positive uranium price outlook and a return to production, Paladin said it remains well positioned to generate strong returns for its stakeholders,” according to the Chief Executive, Ian Purdy.
The report states that the first commercial production is expected by the end of March this year but cautions that lower output over the festive season may push this out to the second quarter. “There has been extensive collaboration between the commissioning team and the operations team which has helped to offset reduced productivity.”
Paladin Energy forecasts total project capital costs of approximately N$2.36 billion (US$125 million). This includes all major construction costs committed and additional contractor resourcing forecast during the commissioning phase. The ongoing commissioning activities, coupled with the time required to build in-circuit metal inventory in the processing plant, are the current critical items to successful project completion.
Paladin said that the Restart Project is now over 93% complete and has reached several milestones in the last quarter of 2023. Operational readiness is near completion, with operational systems for safety, maintenance and production completed.
The mobilisation of all equipment and personnel by the mining contractor for stockpile re-handling is now also complete.
All reagents have been delivered and stored on-site or at local suppliers, while all the commissioning spares and the majority of critical and operational spares have been delivered.
There is also continued progress of power and water capacity upgrades with completion of the NamWater pipeline booster.
Langer Heinrich went onto care and maintenance in 2018 waiting for uranium prices to recover and making it possible to restart operations. A pre-feasibility study was then conducted in June 2020 followed by a value add study to restart and return to production.
