Commercial production at the Langer Heinrich Mine, initially set for Q1 this year, could be delayed to Q2 because of lower productivity by contractors during the Christmas and New Year period.
Paladin Energy, which has 75% shareholding in the Langer Heinrich Mine, says the restart project is now over 93% complete.
“First commercial production is expected by the end of Q1 2024. However, lower contractor productivity over the Christmas / New Year period may result in a delay to early Q2 2024,” the company said in its Quarterly Activities Report for the period ending December 31, 2023.
Paladin added that the ongoing commissioning activities and the time required to build an in-circuit metal inventory in the processing plant are critical to the successful completion of the project.
According to Paladin, production activities started on January 20, 2024, with the first ore feed into the front-end circuit.
The ore feed was sourced from the existing stockpiles, supporting the mine’s ramp-up ahead of the first commercial production.
The company said commissioning activities are underway in all other plant areas.
So far, Paladin has recruited about 90% of the operations team, with experienced personnel filling all critical roles, demobilised the contractor workforce, and commenced with approximately 760 personnel on site in January 2024, a significant reduction from the peak of 1,200.
The company has also completed operational systems for safety, maintenance, and production while installing the new Final Product Recovery (FPR) plant, which has started.
Additionally, the mining contractor’s contractor’s mobilisation of all equipment and personnel for stockpile rehandling is now complete.
There is continued progress in power and water capacity upgrades, completing the NamWater pipeline booster two upgrade works.
The company is forecasting total project capital costs of approximately US$125 million (previously US$118 million) with all major construction costs committed and including additional contractor resourcing forecast during the commissioning phase.
Paladin CEO Ian Purdy said after more than six years of care and maintenance, it is exceptionally pleasing to see production activities recommence at the Langer Heinrich Mine, with the first ore feed to the processing plant achieved in January.
Purdy also said the US$150m debt facility from Nedbank and Macquarie Bank ahead of operations has been a critical strategy for Paladin and will provide increased capital flexibility as we transition through ramp-up and progress to full production at Langer Heinrich.
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“With a strong uranium price outlook and an imminent return to production, Paladin remains well positioned to generate strong returns for our stakeholders,” Purdy said.
