Paladin Energy, which is in the process of restarting the Langer Heinrich uranium mine in the Erongo Region has secured cornerstone offtakes with foundation customers and has six offtake contracts executed with top tier counterparties in the US, Europe and China.
Paladin CEO, Ian Purdy said the contract book for 2024 is now closed. “These contracts range in type and duration and provide base-escalated, fixed-price and market related pricing mechanisms. Along with the market-related contract in place with China National Nuclear Corporation (CNNC,) Paladin will retain significant upside exposure to the strengthening uranium market fundamentals. The company is continuing to engage with top-tier industry counterparties, via the request for proposal processes and off market discussions. The company’s marketing continues to progress commercial negotiations with conversion facilities and shipping companies ahead of the company’s return to production,” said Purday.
He said during the first quarter of this year critical plant and equipment was delivered to site, where the company’s on-site project execution team, and over 1000 contractors, are actively engaged in returning the Langer Heinrich Mine to production.
“The project remains on time and on budget with first production targeted for the first quarter of 2024 with a strong uranium contract book and a world class asset in the Langer Heinrich Mine, Paladin remains well positioned to deliver long term value for our stakeholders,” Purday added.
Paladin is spending US$118 million to return the mine to production and the project is so far 60% complete.
Langer Heinrich Mine has proven operations performance over 10 years and Paladin owns a large global portfolio of uranium exploration and development assets.
“As nuclear power remains a leading sustainable source of low-carbon electricity generation, Paladin has a clear role in positive, worldwide change,” Purday said.
Trade Economics, which monitors uranium prices, said this week that uranium prices rose toward $56 per pound, halting a four-week decline and remaining relatively close to the 14-month high of $57.75 touched in June amid growing concerns about supply risks from Russia. Exports of nuclear fuel from ports of St. Petersburg to the United States were halted due to the lack of proper insurance coverage, interrupting supply and consolidating worldwide concerns that prolonged geopolitical tensions with Moscow will reshape supply chains despite no formal sanctions being passed.
Trade Economics said efforts by US and European utilities to shun Russian nuclear fuel stress the limited capacity of local production streams as Russia is responsible for nearly half of the world’s capacity for uranium conversion and enrichment, according to the latest data.
“Meanwhile, major economies continue to announce plans to increase nuclear power capacity to strengthen energy security and lower carbon emissions, solidifying expectations of strong uranium-buying activity for decades to come,” Trade Economics said.