Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Paladin Energy (ASX: PDN) has added another four provisional offtake agreements to its order book as it prepares to restart the Langer Heinrich uranium mine in Namibia by the first quarter of 2023, the Western Australia-based company announced on Friday.
According to Paladin, the four tender awards entail supplying uranium to industry-leading counterparties in the U.S. and Europe.
The company says it is working towards finalizing contract terms which will complement existing offtake agreements with Duke Energy and the Chinese National Nuclear Corporation (CNNC). The awards are subject to the execution of final contracts and approval by the Namibian government.
Paladin expects to provide guidance on volumes and pricing mechanisms once final contracts are executed.
Canaccord Genuity Capital Markets analyst James Bullen expects the new contracts to be similar in volume to the existing 2.1 million lb. Duke agreement.
During the quarter, the company made progress in restarting the mothballed operation.
Site contractors and mine personnel have continued removing redundant equipment in preparation for process upgrades and improved plant maintainability. The company also reports it has completed site establishment activities in preparation for receiving site construction contractors and project equipment and materials.
Meanwhile, the Namibian government water authority, NamWater, has confirmed the availability and supply of water capacity for the life of the mine.
