Commercial milestone for Langer Heinrich
Focus at Langer Heinrich will now shift to production ramp-up and building a finished product inventory, ahead of shipments to customers. Photo Paladin Energy

Commercial milestone for Langer Heinrich

The Langer Heinrich Mine on Saturday achieved uranium concentrate production and drumming, majority shareholder Paladin Energy announced yesterday.

Focus will now shift to production ramp-up and building a finished product inventory, ahead of shipments to customers, Paladin said.

“Achieving first production at the Langer Heinrich Mine [after six years of care and maintenance] is an important milestone for Paladin. I would like to thank all our staff and contractors for their hard work and dedication in returning this globally significant uranium mine to production,” Paladin CEO Ian Purdy said.

Purdy also thanked government and the local communities in the Erongo region for their continued support.

“With a return to production, a strong balance sheet and supportive uranium fundamentals, Paladin is exceptionally well-positioned to generate sustainable returns for all our stakeholders,” Purdy added.

The company will provide guidance for key operational parameters for Langer Heinrich in Paladin’s 2025 financial year in July.

As part of the transition to production, Paladin’s chief operating officer, Paul Hemburrow, will assume responsibility for all Langer Heinrich activities.



Debt facility

Langer Heinrich celebrated its first ore feed into the processing plant in the last week of January, following successful commissioning of the beneficiation circuit.

Paladin also executed a US$150 million syndicated debt facility in the same month.

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.

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