Uranium output up in second quarter

By: JO-MARÉ DUDDY

NAMIBIA’S two uranium mines, Paladin Energy’s Langer Heinrich and Rio Tinto’s Rössing, produced 2,4 million pounds of uranium oxide during the second quarter of this year, four per cent more than the previous three months.

Releasing his update on uranium production yesterday, Old Mutual Namibia group economist Robin Sherbourne said that Rössing remains Namibia’s biggest producer of uranium oxide by more than half a million pounds. The mine produced 1 432 000 pounds from April to June compared to 927 373 pounds by Langer Heinrich.
Rössing Uranium’s second-quarter production represents an increase of seven per cent over the first quarter, while Langer Heinrich’s output was marginally lower with a 0,1 per cent dip.
Paladin Energy released its quarterly report yesterday, saying that the processing plant at Langer Heinrich has reached its Stage 2 nameplate capacity of 925 000 pounds per quarter for the second quarter in a row.
“The plant has been running consistently at Stage 2 rates since November 2009 and it is now evident the current levels of production can be sustained,” Paladin Managing Director John Borshoff said.
He said the second-quarter production was 34 per cent higher than the corresponding period last year. Production for the 2010 financial year came to 3,35 million pounds, an increase of 24 per cent over 2009.
Borshoff said Langer Heinrich crushed a record-breaking 548 018 tonnes of ore during the second quarter.
Construction on Stage 3, set to increase production from 3,7 million pounds to 5,2 million pounds per year, is progressing well, Borshoff said. Mechanical completion is scheduled for the end of this year, with an estimated ramp-up period of six months.
Commenting on the uranium market during the second quarter, Borshoff said that the spot price moved in a “very narrow range” around US$41,75 per pound of uranium oxide from the beginning of April and ended the quarter at the same level. The long-term price indicator remained stable over the three months at US$58 per pound of uranium oxide.
Borshoff also referred to the latest report of the International Energy Agency (IEA), highlighting the increasing global demand for nuclear energy.
“The IEA report is the latest of many such assessments which predict significant growth for nuclear energy worldwide which will maintain pressure on the uranium supply sector for many years,” he said.

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