Jo-MarÉ Duddy
1 July 2009
PALADIN Energy has cut its envisaged investment into the third expansion stage of Langer Heinrich by nearly N$1,3 billion, saying it doesn't really need additional infrastructure for water and power to meet the reduced production targets of the project. The expansion will nevertheless create new jobs.
Wyatt Buck, General Manager of Langer Heinrich, told The Namibian that some 800 people will be employed during the construction phase, while 100 more workers will join the operation side, pushing up the permanent work force to about 500.
Meanwhile, Australia Company Chief Executive Officer (CEO) John Borshoff yesterday said the Paladin board has approved US$71 million, about N$547 million, for Stage III. This is US$103 million less than originally planned. The next stage, which should be completed by September next year, plans to increase production by 40 per cent to 5,2 million pounds of uranium oxide per year.
This is less than the six million pounds originally anticipated, which would have required Paladin to upgrade both its power and water supply infrastructure.
Borshoff said Paladin developed a revised scenario based upon maximum utilisation of the current water allowances so that Stage III would not be vulnerable to delays in getting additional water supply.
At the current ore reserve and stockpile levels, Langer Heinrich has a life of 12 to 13 years. This could increase to 20 years, depending on the success of an infill drilling programme, Borshoff said.
He said although the production target has been lowered, Paladin is confident that water availability will improve by the end of 2011, thereby paving the way for further expansion possibilities. "The expansion model adopted by Paladin for Stage III provides an excellent basis for further progressing and expanding this remarkable uranium project," Borshoff said.
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