PERTH (miningweekly.com) – Uranium miner Paladin Energy has sold off a 25% interest in its Langer Heinrich mine, in Namibia, for $190-million to a subsidiary of China National Nuclear Corporation (CNNC).

Paladin CEO and MD John Borshoff said that the joint venture (JV) represented a formidable partnership, focused on advancing global uranium production.

He added that the JV would ensure the long-term growth and development of the mining operations at Langer Heinrich, and reinforced the importance of Namibia in the global uranium mining context.

“Paladin has conducted an exhaustive and wide-ranging process, which we are delighted to have concluded with the introduction of one of the world’s leading nuclear industry participants into our world-class Langer Heinrich project,” said Borshoff.

He noted that the significant cash injection from the minority sale would largely be applied to debt reduction, which was an essential step during a time of unprecedented low uranium prices.

“This will help stabilise the company, establishing an incredibly strong platform that will enable us to maximise the value of our assets and ensure increased production of much needed uranium, once the price is sufficient to support the planned future growth of nuclear energy in China and elsewhere,” Borshoff said.

Further, an offtake agreement would allow CNNC to purchase its share of product at the prevailing market spot price, while Paladin would also benefit from securing additional long-term offtake agreements with CNNC at arm’s-length market rates, from Paladin’s share of the Langer Heinrich production.

The mine currently has a design capacity of about 5.2-million pounds of uranium production a year, following a successful optimisation and debottlenecking. The project is expected to produce 5.7-million pounds during 2014.

The Namibian government has been informed of the agreement with CNNC, with the respective boards of both companies also approving the deal.

The completion of the transaction was subject to certain regulatory approvals, which would be obtained by mid-2014.