Langer Heinrich ups production

PRODUCTION at Langer Heinrich during the first quarter (Q1) of 2009 increased by 40 per cent to 685 874 pounds of uranium oxide compared to the same period last year, and exceeded production targets for the third consecutive full quarter.

Namibia’s second uranium mine also achieved a new record for crushed tonnes for the second consecutive quarter. Langer Heinrich crushed a total of 425 030 tonnes of ore during Q1.
The mine produced more than two million pounds of uranium oxide during the nine months to March 31, Australian holding company Paladin Energy said when it released the latest quarterly results.
Concentrate fetched an average of US$54 per pound during Q1 and 453 000 pounds were sold, resulting in sales of nearly US$24,7 million, or approximately N$222 million at yesterday’s exchange rate.
‘Based upon the attainment of sustainable production, Paladin is implementing a uranium sales programme emphasising further commitments under term uranium sales contracts incorporating sales prices reflective of the current long-term uranium market. Inventory building at the three uranium conversion facilities is continuing on plan,’ the group said.
A total of 1,576 million pounds of uranium oxide at an average price of US$56 per pound were sold during the nine months, resulting in revenue of nearly US$88,3 million, or approximately N$795 million.
The improved operating performance of Langer Heinrich boosted Paladin Energy’s gross profit for the half year to March 31 by US$24,9 million year on year, the group said.
The second stage of expansion at Langer Heinrich, which should see production increase to 3,7 million pounds per year, is ‘undergoing commissioning and finalising construction, Paladin said.
The production ramp should be completed next month and nameplate design throughput is expected from July. Some US$35 million, or approximately N$315 million, has been invested in Langer Heinrich in Q1.
The Paladin board will review the proposal for the third stage of expansion in June.
The entire process plant at Langer Heinrich can now operate under full grid power blackout conditions after the 10MW package power station at the mine was completed in February. However, as far as water is concerned, the quarterly report says that NamWater’s schedule for the supply of desalination water ‘appears to be slipping’.
‘Despite this possible delay, it is believed that once the Stage III study is complete, the impact on the expansion project will be minor,’ the report states.
Paladin says worldwide developments continue to strongly favour nuclear power.
‘An indication of the growing concerns regarding future uranium supplies can be seen in recent direct investments by nuclear utilities in uranium companies accompanied by production off-take commitments.’