Kalgoorlie, 1 August 2022 (TDI): In order to fund exploration and revive mines, Australian uranium producers, including Paladin Energy, have sold nearly $400 million worth 282.08 million USD of shares this year.
$PDN $PALAF has announced it will return the Langer Heinrich Mine to production to take advantage of the improving uranium market conditions. First volumes targeted for early CY24#uranium #cleanenergyhttps://t.co/9HQgipjc5w
— Paladin Energy (@Paladin_Energy) July 19, 2022
Ian Purdy, Chief Executive officer of Paladin, stated at the Digger & Dealers Mining Forum in Kalgoorlie, Australia. There is an insufficient current primary uranium supply to meet the requirements.
Also, it has a deficit that is being filled by secondary supplies and inventory drawdowns. Paladin is a Company that operates as a major, independent global miner.
Furthermore, they are known for their dependable massive uranium production capacity at the Langer Heinrich mine in Namibia. Additionally, they have a diverse exploration portfolio in Australia and Canada.
Over the next ten years, it is anticipated that the annual deficit will range between forty and fifty million pounds. Thereby, the projected production from the returned mines cannot be sufficient to link up such a deficit.
Leading to decreased prices, Paladin is all set to reopen the Langer Heinrich uranium mine in Namibia. Paladin added that the company aims to produce uranium by the initial months of 2024.
According to Purdy, cost increases for equipment, raw materials, and labor are to blame for the 118 million dollar increase. This increase has been forecasted in the Langer Heinrich mine’s total capital expenditure from 87 million dollars.
Furthermore, an increase in yellowcake (uranium) value in the past year has inspired uranium producers. Demand was further boosted by unrest in Kazakhstan, which accounts for 45% of the world’s primary uranium output, and Russia’s intrusion of Ukraine.
Paladin Energy further observed a global demand for nuclear energy, including in the United States, Europe, and Asia.
Therefore, between 2020 and 2035, China has declared its intention to erect 150 new reactors. South Korea and Japan also intend to increase their nuclear capacity.
Moreover, Britain has also pledged to construct one new nuclear plant annually in Europe. Whereas, France announced to construct 14 additional reactors, and the European Union has suggested classifying nuclear power as a green investment.
