Paladin hopes for higher prices to restart Kayelekera
Uranium miner Paladin Energy has officially ceased uranium production at its Kayelekera mine, in Malawi, with the miner placing the mine on care and maintenance.
In February, ASX- and TSX-listed Paladin announced that it had suspended mining operations at Kayelekera, saying that the operation was a severe drain on the company’s finances in the sustained low uranium-price environment.
Ore processing continued at the mine during the rundown phase, until reagents and consumables on site had been depleted.
Paladin told shareholders that, with the mine now entirely ceasing production, global uranium supply would be reduced by around 3.3-million pounds a year.
MD and CEO John Borshoff said that, while on care and mainten- ance, Paladin would continue exploration activities at Kayelekera, with the objective of identifying and delineating additional uranium resources in order to enhance the long-term future of the project.
Mine Maintenance
“Paladin is committed to maintaining the mine and its infrastructure at Kayelekera in good working order to facilitate a rapid resumption of production when market conditions make it possible to do so profitably,” Borshoff said.
He noted that production at Kayelekera could be restarted with minimal risk and within a short lead time of about nine months.
“This will allow Paladin to take advantage of any increase in the uranium spot price in a relatively rapid manner,” Borshoff added.
The uranium miner previously said that an incentive price for operational restart would be between $70/lb and $75/lb.
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