Langer Heinrich needs N$1.2b capital injection
By Business Reporter
A prefeasibility study (PFS) into the restart of the Langer Heinrich uranium project, in Namibia, has confirmed that $80-million (N$1.2billion) in capital will be required to support a 5.2-million-pound-a-year operation.
ASX-listed Paladin Energy last week said that there was an opportunity to increase production to 6.5-million pounds a year through additional high return, discretionary capital spend of $30-million (N$450 million), further enhancing access to off take and financing.
“The Langer Heinrich mine is a world class uranium asset and this study confirms Paladin’s key position as a first mover back into production in a recovering uranium market,” said CEO Scott Sullivan.
The PFS estimated that all-in sustaining costs over the mine life would be around $30/lb with further cost improvements of around $4.50/lb achieved through significant process changes after a restart of operations.
“Achieving production of over five-million pounds at a cost of under $30/lb and with a 12-month lead time on execution, were key targets of the board and executive team, and will see Langer Heinrich in an enviable position when uranium prices recover,” said Sullivan.
“This study continues to demonstrate the high quality and potential of the asset and provides a solid foundation for a confident and successful restart.”
Paladin holds a 75% stake in the Langer Heinrich project, which was placed on care and maintenance in August of last year, following a fall in the uranium price.