Paladin Energy, a uranium mining company, intends to resume operations at its Langer Heinrich Mine (LHM) in Namibia.
Due to the low uranium prices in 2018, the LHM was shut down. The mine had previously generated more than 43Mlb U3O8.
Due to the solid fundamentals of the uranium market and the expansion of uranium marketing operations, Paladin currently plans to resume production at the mine.
General repairs and a renovation of the current process plant to operational readiness are part of the scope of work required for the restart.
The mine will require $118m capital to commence production again, which is scheduled in 2024.
Paladin CEO Ian Purdy said: “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.
“The increase in the capital required to restart operations reflects a combination of recent inflationary pressures and the bringing forward of key work packages to ensure the long-term reliable supply of power and water to the site.”
In addition, it has engaged top consultants to bring the LHM into production, despite the challenging global project delivery environment and inflationary pressures.
African-focused engineering company ADP Group has been selected to provide engineering, procurement and construction management services for the project.
ADP will be responsible for providing engineering and design, as well as procuring equipment and materials, project management and contract administration services, among others.
Purdy added: “The Langer Heinrich Mine remains a low-risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all our stakeholders.”