Langer Heinrich mine operational

SHARES in Paladin Resources Ltd. climbed 6 per cent late last month after the company said construction and staged commissioning of the Langer Heinrich uranium project is complete, as is the transition of the project to Paladin operational staff.

Langer Heinrich has produced Paladin’s first uranium oxide concentrate, or yellowcake. Paladin said the project is “an important step forward” to meet growing demand for uranium.”With continued positive price outlook expected for a decade or more, timing of Paladin’s production is optimal in consolidating the company as the pre-eminent producer,” the Australian company said.Langer Heinrich Uranium (LHU) holds a mining licence and is situated on a lease area of 70 square kilometres in the Namib Naukluft national park.It lies 85 km east of Swakopmund, with seaport access to nearby Walvis Bay.The mining method used is open-pit excavator truck operations.The first product shipment from the mine is scheduled for February 7 according to LHU.Uranium stocks are poised for a new speculative burst after a dramatic spike in the metal’s price and an analyst prediction that it will break through US$100 a pound in 2007.The spot price jumped 9.9 per cent in mid-December to a record US$72/lb, up US$6,50 from the previous week.The metal started 2006 at US$36,25, half its present level.Worries about uranium supplies are growing, with 251 new nuclear reactors either being built or planned compared with the 442 in production.The news saw Paladin Resources, with the only new mine in the world going into production, surge another 23c to US$7,95.The latest rise in the price was triggered by an auction in Corpus Christi, Texas, held by small US producer Mestena Uranium.It put 260,000lb up for sale, and bids came in up to about US$73/lb, which led the industry monitor Ux Consulting to post the new spot of US$72.Analysts RBC Capital Markets said that Ux Consulting had indicated prices could move to much higher levels if demand remained strong.RBC issued new price forecasts of US$100/lb for next year and US$85/lb for 2008.There has also been a reported frenzy for acquiring new uranium projects, with exploration lease prices rising fivefold.Paladin Resources is moving to production at its Namibian mine and in advanced planning for a Malawi mine.Managing director John Borshoff is not surprised by the rising price.He said Paladin was the only company in the world starting a new mine at a time many reactors were planned.Few people had understood the crisis in the demand-supply balance, Borshoff said.”Most of the analysts just haven’t got a clue.”It would take 20 to 30 years to ease the pressure on uranium because there were not enough new mines or production.Paladin had locked 25 per cent of its Namibian output into contracts to meet bank loan conditions, but the rest was available for sale at a price the market would pay.www.thestar.comPaladin said the project is “an important step forward” to meet growing demand for uranium.”With continued positive price outlook expected for a decade or more, timing of Paladin’s production is optimal in consolidating the company as the pre-eminent producer,” the Australian company said.Langer Heinrich Uranium (LHU) holds a mining licence and is situated on a lease area of 70 square kilometres in the Namib Naukluft national park.It lies 85 km east of Swakopmund, with seaport access to nearby Walvis Bay.The mining method used is open-pit excavator truck operations.The first product shipment from the mine is scheduled for February 7 according to LHU.Uranium stocks are poised for a new speculative burst after a dramatic spike in the metal’s price and an analyst prediction that it will break through US$100 a pound in 2007.The spot price jumped 9.9 per cent in mid-December to a record US$72/lb, up US$6,50 from the previous week.The metal started 2006 at US$36,25, half its present level.Worries about uranium supplies are growing, with 251 new nuclear reactors either being built or planned compared with the 442 in production.The news saw Paladin Resources, with the only new mine in the world going into production, surge another 23c to US$7,95.The latest rise in the price was triggered by an auction in Corpus Christi, Texas, held by small US producer Mestena Uranium.It put 260,000lb up for sale, and bids came in up to about US$73/lb, which led the industry monitor Ux Consulting to post the new spot of US$72.Analysts RBC Capital Markets said that Ux Consulting had indicated prices could move to much higher levels if demand remained strong.RBC issued new price forecasts of US$100/lb for next year and US$85/lb for 2008.There has also been a reported frenzy for acquiring new uranium projects, with exploration lease prices rising fivefold.Paladin Resources is moving to production at its Namibian mine and in advanced planning for a Malawi mine.Managing director John Borshoff is not surprised by the rising price.He said Paladin was the only company in the world starting a new mine at a time many reactors were planned.Few people had understood the crisis in the demand-supply balance, Borshoff said.”Most of the analysts just haven’t got a clue.”It would take 20 to 30 years to ease the pressure on uranium because there were not enough new mines or production.Paladin had locked 25 per cent of its Namibian output into contracts to meet bank loan conditions, but the rest was available for sale at a price the market would pay.www.thestar.com