More than two million hours have been worked on the Langer Heinrich restart project without any serious injuries or reportable environmental incidents, Paladin Energy says. Photo Paladin Energy
More than two million hours have been worked on the Langer Heinrich restart project without any serious injuries or reportable environmental incidents, Paladin Energy says. Photo Paladin Energy

Langer Heinrich: Ready, steady, go!

First uranium ore feed
Paladin Energy yesterday executed a debt facility of about N$2.8 billion which will provide it with capital flexibility as the company recommences operations at the Langer Heinrich Mine.
Jo-Maré Duddy
Production activities at Paladin Energy’s Langer Heinrich Mine (LHM) restarted on Saturday with the first ore feed into the processing plant, following successful commissioning of the beneficiation circuit.

“After more than six years of care and maintenance it is exceptionally pleasing to see production activities recommence at the Langer Heinrich Mine,” Paladin CEO Ian Purdy said in the Australian-based company’s latest quarterly report.

Paladin yesterday also announced that it executed a US$150 million syndicated debt facility on Wednesday.

The debt facility of about N$2.8 billion will provide Paladin with capital flexibility as the company recommences operations at the Langer Heinrich Mine, it said in an announcement on the Australian Stock Exchange (ASX).

“The debt facility will provide increased capital flexibility as we transition through ramp up and progress to full production at the Langer Heinrich Mine,” Purdy said.

“With a strong uranium price outlook and a return to production imminent, Paladin remains well positioned to generate strong returns for our stakeholders,” he added.



Investment

According to Paladin’s latest quarterly report, the LHM Restart Project is now over 93% complete, with final construction and ongoing commissioning activities continuing across the processing plant.

Over two million hours have been worked on the project without any serious injuries or reportable environmental incidents, Paladin said.

The company pumped US$25.5 million – nearly N$482 million – into the Langer Heinrich restart project in the last quarter of 2023.

The total capital cost of the project is estimated at US$125 million or nearly N$2.4 billion. Paladin’s unrestricted cash at the end of last year was US$61.6 million.

Paladin continues to target first commercial production by the end of the first quarter of this year, but cautioned that lower contractor productivity over the festive period may result in a delay to early in the second quarter.



Operations

About 90% of the operations team has been recruited, with experienced personnel filling all critical roles, Paladin said.

The company has started with the demobilisation of the contractor workforce with approximately 760 personnel on site this month, a significant reduction from the peak of 1 200.

According to Paladin, operational readiness activities at Langer Heinrich are nearing completion, with operational systems for safety, maintenance and production finished. The company also reported continued progress of power and water capacity upgrades at the mine.

Paladin Energy is dual-listed on the Overall Index of the Namibian Stock Exchange (NSX). It closed Wednesday at N$15.31 per share.

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Namibian Sun 2024-11-23

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