Australian uranium producer Paladin Energy is on schedule to complete the ramp-up of its Langer Heinrich uranium mine in Namibia, with maximum output expected from July, as rising uranium prices continue to boost investment in the sector, its chief executive said on Thursday.
Driven by renewed global interest in nuclear energy and concerns over potential supply shortages, uranium prices climbed to a two-year high of $101 per pound in January before easing to trade between $85 and $90 per pound.
Namibia, currently the world’s third-largest uranium producer after Canada and Kazakhstan, is aiming to strengthen its position after reaching record production last year.
The country surpassed 10,000 metric tonnes, or about 22 million pounds, of U3O8, commonly known as “yellowcake,” for the first time, according to Reuters.
“We’ve had five quarter-on-quarter improvement in volumes and expect that trend to continue into FY 27, so we expect an absolute cracker of a year,” Paul Hemburrow, Paladin’s chief executive officer, said, referring to Paladin’s output.
“Higher prices are good for everybody,” he said in a telephone interview from Namibia during an investor visit.
China National Nuclear Corporation holds a 25% stake in the Langer Heinrich mine. Namibia’s two largest uranium mines operating in its arid conditions are Husab, run by Swakop Uranium, and Rossing, owned by CNNC, both majority controlled by Chinese companies.
Uranium yellowcake is primarily used to produce nuclear fuel for power plants.
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Namibia also has two major new uranium projects in development: the Etango Mine by Bannerman Energy and the Tumas Mine by Deep Yellow. Together, the projects are expected to cost around 12 billion Namibian dollars, or $756 million, to develop.
China National Uranium, owned by CNNC, said on Thursday it plans to acquire a 42.8% stake in the Etango project through a subsidiary’s agreement with Bannerman Energy, according to a filing with the Shanghai Stock Exchange.
The total value of the transaction would not exceed $322 million. The Chinese company said it aims to support the project’s long-term stable operations.
Meanwhile, French nuclear company Orano, which lost its licenses in Niger after a coup, is reviewing its Trekkopje mine in Namibia, which has been inactive for more than a decade, according to media reports. Orano did not immediately respond to requests for comment.
Bannerman’s chief executive said the company expects to make a final investment decision within the next six to twelve months and aims to begin first sales in 2029.
“Once Etango is in production there is potential to further increase production to 6.8 million pounds U3O8 per annum without the need for additional drilling,” CEO Gavin Chamberlain told Reuters this week.
According to the Namibian Uranium Institute, planned new projects combined with existing mines still ramping up could eventually double record production levels to more than 20,000 tonnes of U3O8.
Namibia’s main export markets for uranium include China, Europe, Japan and the United States.
“But this, of course, is linked to the development of the uranium price in the future,” said Gabi Schneider, executive director of the Institute.
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Image Credit: Investing News Network
