Langer Heinrich Mine's reopening to cost N$2,1b in 2023

 




The Australian mining company Paladin is planning a low-risk restart of the Langer Heinrich Uranium mine with a project capital forecast of US$118 million (N$2,1b) in early 2023.


Paladin Energy owns a 75% stake in the Langer Heinrich Mine, while the Chinese National Nuclear Corporation (CNNC) has 25%.


The CNNC acquired the 25% stake in 2014 for US$190 million before the mine went into care and maintenance in 2018.


In a recent statement, Paladin Energy said site contractors and the mine personnel had removed redundant equipment in preparation for process upgrades and improved plant maintainability.


The company also said the completion of site establishment activities is in preparation for receiving site construction contractors and project equipment and materials. 


Paladin further confirmed signing offtake agreements to supply uranium concentrates to a subsidiary of Duke Energy, a leading Fortune 150 North American power utility. 


The offtake agreement means that Duke Energy will buy or sell uranium produced at the Langer Heinrich mine for six years, with an option to extend it for three years.


According to a March 2022 ASX announcement, the offtake agreement contemplates the supply of up to 2.1 million lbs of U3O8 over six years starting in 2024. This represents about 5% of Langer Heinrich's total production.


In addition to the Duke Energy offtake agreement, Paladin said it secured four additional tender awards for uranium supply to industry-leading counterparties in the US and Europe.


The government, however, said the company would have to approve the proposed US and European contracts before execution.


Paladin already has an existing offtake agreement with CNNC Overseas Uranium Holding Limited (CNNC) for up to 25% of the Langer Heinrich future life-of-mine production.


The company said it had renegotiated the CNNC payment terms to speed up payment terms and improve liquidity.


NamPower, Paladin said, confirmed the initial supply and upgrade for power requirements, while NamWater, confirmed the availability and supply of water the mine requires.


"[The] Activity for the December quarter will focus on completion of the redundant equipment removal, contracting of site work packages including mobilisation and commencement of the multidiscipline repairs and refurbishment scope packages and growth project civils, and progression of the NamPower and NamWater agreements and infrastructure upgrade works," the company said. 



Comments

Post a Comment

Popular posts from this blog

Hebei Xinjian buys loss-making Namibian tantalite company from Kazera

Image
Hebei Xinjian Construction has bought the loss-making Namibian company African Tantalum (Aftan) from Kazera Global for US$13m. Aftan operates the Tantalite Valley Mine, about 30 km from Warmbad town in southern Namibia. The company recorded a N$6,963,023 loss before tax on 30 June 2022. The agreement signed before Christmas entails that Hebei Xinjian buys shares in African Tantalum for US$3,642,207 and then pays an intercompany loan amounting to US$9,357,793. Hebei Xinjian has already paid US$642,207, while US$500 000 should be paid before the end of December 2022. The other US$2,5m should be paid by the end of January 2023 The US$9,357,793 will be paid in instalments from April 2023 until December 2023. In case of any outstanding amount, Hebei will have to pay back at an 8% interest per annum. Hebei Xinjian will only take complete operational control after making full payment for the loan and the share sale by the end of 2023. Kazera says the sale will enable the company to exit an in...
Read more

Desert Lion Energy & the Namibian lithium story

Image
The lithium story in Namibia became prominent when Xinfeng Investments, a Chinese company, courted controversy after buying a mine for N$50m from some officials. The story also picked pace when Xinfeng Investments was caught shipping vast quantities of lithium ore to China for testing. Not only was the story about the shipments, but it was also about the ownership of the exclusive prospecting licence and the farm - Kohero No 13 - between Omaruru and Uis in the Erongo region.   Before Xinfeng Investments and Farm Kohero, there was Desert Lion Energy and its plans for what could have been Namibia's biggest lithium mine. There was also the ownership confusion story of Farm Okongova, where Desert Lion Energy's exclusive prospecting licences covered. Even the shipping out of lithium concentrate started with Desert Lion Energy, which teamed up with !Huni-/Urib Investments in 2018. Thomas Mushimba and Mark Welthagen own !Huni-/Urib Investments. The companies shipped out 30 000 tons of...
Read more

Tsumeb smelter delivers 41 800 tons of concentrate copper in 4th quarter

Image
Dundee Precious Metals says its Namibian mine Tsumeb smelter processed about 41,800 tons of complex concentrate during the fourth quarter.  The smelter processed about 174,100 tons of complex concentrate in 2022, below the annual guidance of 185,000 to 200,000 tons. The Canadian-based company operates in Bulgaria, Namibia, Ecuador and Serbia, where it has copper and gold mines.  The company announced its preliminary production results for the fourth quarter on 10 Jan., covering operating highlights and exploration update for Tsumeb, Ada Tepe and Chelopech in Bulgaria. According to the results, a 17-day shutdown to repair a water leak in the off-gas system and instability in the power grid impacted Tsumeb's results during the fourth quarter.  Ada Tepe produced the most in the fourth quarter at about 28,100 ounces of gold, while Chelopech produced about 45,300 ounces of gold and 7.4 million pounds of copper.  In 2022, Ada Tepe produced approximately 94,000 ounces of go...
Read more