Paladin Energy has moved closer towards the restart of the Langer Heinrich uranium mine in Namibia, Africa, which remains permitted to resume mining.
The company has concluded an 18-month process for pre-feasibility and optimisation study work programs in a Langer Heinrich restart plan.
Paladin’s restart plan outlines a 17-year mine life for Langer Heinrich, with production peaking at 5.9 million pounds of triuranium octoxide (U3O8) a year for seven years.
The company plans to ramp up Langer Heinrich in the first year, mine for the following seven years and stockpile for the remaining nine years.
It plans to reach 80 per cent nameplate production within six months before hitting 100 per cent capacity within 12 months.
The Langer Heinrich mine can be brought back into production for $US81 million ($118 million), taking advantage of a growing uranium supply deficit in global markets.
“The operational and economic parameters identified in the chosen restart plan show the strategic significance of the Langer Heinrich asset and highlight the potential economic returns that can be delivered under the right uranium price environment,” Paladin chief executive Ian Purdy said.
“Paladin will continue to refine and progress work packages under the restart plan and I look forward to updating the market on our ongoing activities.”
Paladin will work to secure offtake agreements and preserve the Langer Heinrich mine through ongoing care and maintenance.
The Langer Heinrich mine is owned by Paladin (75 per cent) and China National Nuclear Corporation (CNNC) subsidiary, CNNC Overseas Uranium Holdings (25 per cent).