Langer Heinrich Mine in Namibia has confirmed a US $81m of restart expenditure plan. The Restart Plan marks the completion of an extensive work package aimed at delivering a reliable mine restart to bring the globally significant Langer Heinrich Mine back into production under the right Uranium pricing environment.
- The Restart Plan is now complete confirming restart capital, costs and operational performance;
- Langer Heinrich can be brought back into production for US$81M of pre-production cash
expenditure, allocated as follows:
operational readiness (US $34m) required to mobilise the work force, undertake maintenance and provide the working capital requirements to commence production; and discretionary capital (US $47m) specifically aimed at improving process plant availability and reliability to lift production capacity by more than 10%.
- Low restart capital intensity (US$14/lb) and competitive C1 Cost of Production (US$27/lb) confirms Langer Heinrich is well positioned alongside other Tier 1 operations to deliver product into a recovering Uranium market;
- The Restart Plan has confirmed a 17-year mine life for Langer Heinrich with peak production of 5.9Mlb U3O8 per annum for 7 years;
- The Life of Mine Plan outlines three distinct operational phases being Ramp-up (year 1), Mining (year 2-8) and Stockpile (year 9-17). The utilisation of stockpile material in the Ramp-up phase greatly reduces operational start up risk and provides a strong platform for the operation to move toward nameplate capacity within a 12-month period;
- Langer Heinrich remains fully permitted to resume mining and Uranium exports; and
- Paladin’s cash position of US $35m provides financial flexibility and the Company will only consider a restart when it secures an appropriate term-price contract with sufficient tenor and value to deliver an appropriate return to all stakeholders.
According to Paladin CEO, Ian Purdy, the completion of the Langer Heinrich Mine Restart Plan is a significant
step forward for the Company and completes the vast amount of study work undertaken over the past 18
months. “The operational and economic parameters identified in the chosen restart plan show the strategic
significance of the Langer Heinrich asset and highlight the potential economic returns that can be delivered
under the right Uranium price environment. Paladin will continue to refine and progress work packages
under The Restart Plan and I look forward to updating the market on our ongoing activities,” he said.