Australia鈥檚 Paladin聽Energy (ASX: PDN)聽has (LHM) in Namibia,聽following a planned shutdown of the mine plant in November to implement operational upgrades.
Among the improvements, Paladin built an on-site water storage facility designed to provide a buffer against potential future water supply disruptions. This upgrade is particularly relevant during Namibia鈥檚 hot season, which runs from October to April, when water demand peaks.
Paladin said it will provide an update on the plant鈥檚 performance following the upgrades in its December quarterly report, slated to be released on January 22.
Discovered in 1973, the Langer Heinrich mine was acquired by Paladin Energy in August 2002. Production began in 2007 with an initial capacity of 2.7 million pounds of uranium oxide per year. This capacity was subsequently expanded to 3.7 million pounds in 2009 and 5.2 million pounds in 2012.
A sharp decline in uranium prices in the following years forced the Western Australia-based miner to cut production in November 2016. Langer Heinrich was placed under full care and maintenance in May 2018.
In 2022, Paladin decided to restore Langer Heinrich to production, achieving first output in late March this year.
The mine is situated in the Namib Desert, approximately 80 km east of the principal seaport of Walvis Bay and 40 km southeast of China National Uranium Corporation鈥檚 R枚ssing mine, the world鈥檚 longest-running open-pit uranium operation.
Demand revival
Rising prices for the radioactive material this year pushed several miners to reopen mines and resume activities at stalled projects. Leading uranium producers have rushed to meet the demand not only because of favourable prices, but also in light of increased interest from governments looking for nuclear power solutions to meet emissions targets.
While prices have fallen in the last two weeks, they are expected to rebound in 2025 on supply shortages, nuclear energy鈥檚 promise for clean energy, and president-elect Donald Trump鈥檚 America-first security stance.
The International Atomic Energy Agency predicts that by 2040, the global demand for uranium聽, which is more than double the present worldwide production.聽
Currently, two-thirds of the world鈥檚 uranium comes from Kazakhstan, Canada and Australia.