Langer Heinrich Mine provides production guidance: Paladin Energy Ltd has provided the 2025 financial year guidance for the Langer Heinrich Mine (LHM), in the Erongo Region. The LHM re-commenced commercial production on 30 March 2024, following successful completion of the Restart Project.
Production ramp-up and product inventory build-up are underway, ahead of the first customer shipment expected in July 2024, the company said.
The LHM will be in operational ramp up during the 2025 financial year, with ore feed to the plant sourced from previously mined stockpiled ore. Production levels are expected to be higher in the second half of the year, the company announced.
The company said mining activities are expected to re-commence in the 2026 financial year ahead of achieving nameplate production of six million pounds per annum by the end of financial year.
Langer Heinrich Mine has already secured seven offtakes for its uranium production. Paladin noted that nuclear energy is the second largest source of global clean energy with almost zero carbon emissions. It also noted that Chinese demand for nuclear energy is expected to grow from 15% to 33% of global requirements by 2040.
Paladin has said 19 million pound of uranium oxide production is contracted to the year 2030 representing 48% of volume. The company also has an offtake agreement with China National Nuclear Corporation (CNNC) one of the largest consumers of uranium in the world.
Paladin owns 75% controlling interest in Langer Heinrich Uranium (LHU) with 25% owned by China National Nuclear Corporation Overseas Uranium Holding Limited, a wholly owned subsidiary of CNNC Paladin said the 2023 supply-demand deficit of uranium stood at 40 million pounds of uranium oxide.
The other factors that will affect near-term supply include the US Ban on Russian supplies and also noting that 70% of European supply is sourced from Kazakhstan, Russia and Niger, which are facing several political uncertainties.
Paladin also noted that term contracting has returned to the uranium market, driven by supply-demand fundamentals and said utilities source over 80% of their uranium requirements from term contract.
The company also noted that spot market price is driven by strong short-term demand and limited available uranium product. It added that uranium physical funds have increased transparency and liquidity in the market.
Paladin added that it has built a world-class offtake contract book, underpinning the restart of Langer Heinrich. The company said the restart project was completed on time and within cost forecast of US$125 million.
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