Langer Heinrich aims for 10 million pounds uranium annually

LANGER Heinrich yesterday announced expansion plans of US$350 million, nearly N$2,6 billion, to increase uranium oxide production from the current 3,7 million pounds per year to about 10 million pounds per year by 2014.

John Borshoff, Managing Director of holding company Paladin Energy, released a statement saying that an increase in annual production to a level of around 10 million pounds of uranium oxide is sustainable for the current mineral resources and ‘would add significant value to its flagship asset and bring the project to an optimal performance level’.Borshoff said the new expansion, known as Stage 4, will consist of an annual plant production level of about nine million pounds of uranium oxide, supplement by one million pounds of uranium oxide from a heap leaching facility. This will give Langer Heinrich a mine life of 15 years.In Stage 4 Langer Heinrich plans to crush approximately 8 million tonnes of ore per year at an average of 600 parts per million. The crushed ore will then be upgraded through an expanded scrubbing circuit to give a leach feed grade of around 920 parts per million, Borshoff said.Langer Heinrich will need about US$300 million for the main plant onsite, with operating costs here estimated to remain between US$25 to US$30 per pound.The heap leach facility will cost around US$50 million, with operating expenses expected to be under US$35 per pound.According to Borshoff, Stage 4 will require off-site infrastructure including a second water supply pipeline and an upgrade to the existing electrical power supply line. Cost will be determined in a feasibility study and structured financing options with third party ownership will be considered, he said.’Paladin does not believe that there will be any problems associated with sourcing both water and power, because Namibia is planning on increasing the availability of both in the region within the envisaged project development time frame,’ Borshoff said.The key, however, will be to negotiate a reasonable cost base for the additional water and electricity requirements, he added.In order to develop the Stage 4 initiative further, Paladin will undertake a feasibility study, including environmental permitting, Bosrhoff said.The process should be completed by next year.’This study is not expected to be difficult to complete as there is a vast amount of operational project data and in-house expertise now available across the key technical, environmental and financial areas to ensure its smooth development,’ Borshoff said. A six-month approvals period will follow, after which design and construction period is scheduled for two years. Mechanical completion is scheduled for mid 2013, Borshoff said.Ramp-up to nameplate production capacity is expected to take 12 months, which means that Stage 4 should be a reality by 2014.Langer Heinrich is currently in the process of ramping up its Stage 2 expansion to 3,7 million pounds of uranium oxide per year, and plans to complete the implementation of Stage 3 late next year. This will increase annual production to 5,2 million pounds of uranium oxide.’This latest proposed expansion further emphasises Paladin’s determination for organic growth and its long term commitment to uranium mining in Namibia,’ Borshoff said.jo-mare@namibian.com.na