ASX-listed Paladin Energy says in its statement for the six months ended December 31, 2022, that since the decision was made in July 2022 to restart the Langer Heinrich mine (LHM) in Namibia and reach commercial production in calendar 2024, the restart project continues.
This continues with a focus on general repairs and refurbishment to return the existing process plant to operational readiness, coupled with the engineering and procurement for the delivery of growth projects and process upgrades to increase throughput capacity and operational availability.
Paladin is a uranium company with a focus on returning the LHM to production and the company also owns a large global portfolio of uranium exploration and development assets.
The project progressed several activities over the six-month period under review.
This included the completion of redundant process equipment removal and starting of strategic equipment removal to facilitate growth projects scope execution; completion of site establishment activities in preparation for receiving site construction contractors and project equipment and materials; and site work programmes started and progressed for concrete repairs, pump refurbishments and statutory electrical upgrades.
Moreover, the final contractor selections were made and the primary repairs and refurbishment construction scopes of work awarded.
Paladin also awarded all material contracts and purchase orders for project parts and equipment.
It also accepted NamPower and NamWater supply proposals.
There was also the continuation of debottlenecking planning and the preservation of the LHM processing plant and related infrastructure.
Paladin has also secured the offtake agreements, namely, four uranium offtake agreements with industry-leading US and European counterparties; successfully agreed nomination volumes and negotiated to supply additional volumes to China National Nuclear Corporation in 2024 and 2025, in addition to negotiating an early payment agreement; and is currently negotiating a contract for a further tender award for the supply of uranium to a leading US utility.
The company says it continues to engage with top-tier industry counterparties, as it seeks to layer industry-leading offtake agreements ahead of production.
EXPLORATION
During the period, Paladin undertook the work required to meet minimum tenement commitments at its exploration projects in Canada and Australia, and rehabilitation monitoring continued across all locations without incident.
The company completed the summer exploration field programme at Michelin in Labrador, Canada, with the analysis of data collected nearing completion. This analysis will assist in deriving a new exploration model designed to generate new drill targets for the future exploration drilling programmes.
The sales process under the Michelin joint venture (JV) agreement has started as required under the JV agreement. Paladin has the right, acting reasonably, to determine if the terms of any offer made under the sales process are acceptable, and also has a right of pre-emption to acquire the Michelin JV partner’s interest in the project.
Paladin had no lost-time injuries or reportable incidents during the period. LHM has adopted an upgraded health, safety and environment framework with additional systems and processes as part of the restart project ramp-up.
CORPORATE
Paladin has appointed Paul Hemburrow as COO, starting February 1.
Paladin’s 2022 Sustainability Report was published, confirming the company’s commitment to delivering value through sustainable development.
Paladin held $163.2-million of cash and cash equivalents as at period end, and had no corporate debt.