The Langer Heinrich uranium mine, in Namibia, is poised to return to production after the ASX-listed Paladin took the decision to restart operations.
First production is targeted for the March quarter of 2024.
Restart costs for the operation have previously been estimated at $81-million (about N$1.3 billion), with the life-of-mine production estimated at 77.4-million pounds over a 17-year minelife.
However, the restart costs have risen to $118-million (about N$1.9 billion), driven by the escalation of labour, equipment and raw materials costs, the bringing forward of key utility infrastructure work packages, the decision to strengthen the management team through expanded engineering, procurement, construction and management services, minor modifications to the project scope, and an increase in project contingency levels.
“With the strength of the company’s uranium offtakes and the continuing strong uranium market fundamentals, Paladin has made the decision to return the globally significant Langer Heinrich uranium mine to production,” said Paladin CEO Ian Purdy.