Perth, Australia — MININGREVIEW.COM — 27 August 2008 – Paladin Energy Limited – the Toronto and Australian-listed exploration and development company focusing on uranium in Australia and Africa – is expanding its mining operations on the African continent.
In a statement to the Australian Securities Exchange here, the company revealed that expansion of its mine in Namibia was due for completion by the end of the year, while its new project in Malawi would start operating in January.
“Capacity at the Langer Heinrich mine in Namibia is due to be increased to 3.7 million pounds a year by the end of December,” the Paladin statement confirmed, “and production at the US$200 million (R1.5 billion) Kayalekera project in Malawi will start ramping up in January towards an eventual capacity of 3.3 million pounds a year.”
Bloomberg News reports that Paladin started its first operating mine at Langer Heinrich in late 2006 and sold 1.4 million pounds of uranium oxide that year, falling short of its original output target of 2.6 million pounds because of a slower ramp-up of the operation. The agency adds that a proposed third phase of expansion would further increase capacity at the Langer Heinrich mine to 6 million pounds a year.
Paladin reported a full-year loss of US$36 million (R270 million), compared with a US$37.6 million (R282 million) loss a year earlier, as financing costs almost tripled. But it pointed out that net loss had decreased each quarter as gross profits rose at Langer Heinrich. Sales jumped to US$101.9 million (R764.3 million) in the 12 months ended 30 June 2008 from only US$11.2 million (R84 million) the previous year.
Bloomberg reports that last month the company cut its forecast for calendar 2008 production to 2.45 million pounds from an earlier guidance of 2.6 million.