Paladin may develop Australia uranium projects

PERTH (miningweekly.com) - Australia-based Paladin Energy, which owns mines in Namibia and Malawi, is looking to acquire additional uranium projects, and may start developing its Australian projects by 2012, MD John Borshoff said on Thursday.

The company currently produces uranium from the Langer Heinrich mine in Namibia and the Kayelekera mine in Malawi, and owns five Australian projects.

Borshoff told delegates at the Africa Downunder conference in Perth, that the company would look at developing its projects in Queensland, Western Australia and the Northern Territory by 2012, assuming that policies governing uranium exploration changed. It would also first complete the ramp-up of its flagship Langer Heinrich mine.

At the Mount Isa project, in Queensland, work on the feasibility study would start in late 2010, while the first joint ore reserve committee compliant resource at the Angela and Pamela uranium deposit, in the Northern Territory, would be produced by early 2010.

Borshoff said that the Langer Heinrich mine is producing around 2,7-million pounds of uranium oxide a year, but Paladin is commissioning a stage-two expansion that would increase output to 3,7-million pounds a year.

The stage-three development, which would increase output to 5,2-million pounds a year, would start in the latter part of this year. The project design has already been initiated, and the company was awaiting environmental approval.

The stage three expansion would be completed by late 2010, and would require a capital expenditure of around $71-million.

The 3,3-million pounds a year Kayelekera mine will reach its nameplate capacity by the beginning of 2010.

The mine development was currently 5% over its budget, with a capital expenditure of about $215-million.