Australian uranium miners in Namibia bullish on outlook as prices surge

By Wendell Roelf

CAPE TOWN, Feb 12 (Reuters) - Australian miner Paladin Energy PDN.AX is on track to complete the ramp up of its Langer Heinrich uranium mine in Namibia to reach maximum output from July as higher prices help to accelerate mining investment, its chief executive said on Thursday.

Spurred by a global push for nuclear energy and a potential supply shortfall for the critical mineral, uranium prices surged to a two-year high of $101 a pound in January before settling down to hover between $85-$90 a pound.

Namibia, the world's No 3 uranium producer after Canada and leader Kazakhstan, wants to cement its position after achieving record output last year when it topped 10,000 metric tonnes (around 22 million pounds) of U3O8, commonly known as "yellowcake", for the first time.

"We've had five quarter-on-quarter improvement in volumes and expect that trend to continue into FY 27, so we expect an absolute cracker of a year," Paul Hemburrow, Paladin's chief executive officer, said, referring to Paladin's output.

"Higher prices are good for everybody," he said, in a telephone interview from Namibia during an investor visit.

China National Nuclear Corporation (CNNC) holds a 25% stake in the Langer mine. The two largest uranium mines operating in Namibia's arid conditions are Swakop Uranium's Husab and CNNC Rossing, both majority owned by Chinese companies.

Uranium yellowcake is mainly used to create nuclear fuel for power plants.

NEW PROJECTS COULD HELP NAMIBIA DOUBLE OUTPUT

The arid southern African country has two new projects in the pipeline - Bannerman Energy's BMN.AX Etango Mine and Deep Yellow's DYL.AX Tumas Mine are expected to cost around 12 billion Namibian dollars ($756 million) to develop.

French nuclear group Orano, which lost its licences in Niger following a coup, is also re-evaluating its Trekkopje mine that has been mothballed for more than a decade, according to media reports.

Bannerman's chief executive said they expect to take a final investment decision in the next six to 12 months and planned first sales in 2029.

"Once Etango is in production there is potential to further increase production to 6.8 million pounds U3O8 per annum without the need for additional drilling," CEO Gavin Chamberlain told Reuters this week.

The Namibian Uranium Institute said with planned new projects and existing mines still ramping up, record production could eventually double to more than 20,000 tonnes of U3O8.

Major export markets include China, Europe, Japan and the U.S.

"But this, of course, is linked to the development of the uranium price in the future," Gabi Schneider, executive director of the Institute, said.

($1 = 15.8705 Namibian dollars)