The restart of Langer Heinrich Uranium mine is expected to create more than 300 jobs, The Brief can exclusively reveal.
“According to the projections for operational readiness, we are looking at creating about 290 full-time positions, and at the mining and plant phase, we may add to that number of employees but are still busy with operational planning. But at full-time capacity, we will create about 300 jobs,” Johan Roux, the General Manager of Langer Heinrich Uranium Mine told The Brief in an exclusive interview.
The development is expected to boost employment creation in the country’s mining sector, whose direct employment increased by 4.5% in 2021, with 15,246 people collectively employed according to the Chamber of Mines of Namibia.
In terms of operational costs, the Uranium mine’s GM said fuel prices have had a significant impact on its capital and operational costs, driving up its restart costs by an additional 23%, to N$1.9 billion.
“Because of a global supply chain issue, it is difficult to get steel and it is a difficult time to unpack the project, but we have to make it work by making a 23% capital adjustment, and the capital cost increased from 87 million to 118 million, which is quite a significant cost increase due to inflation and supply chain issues, but we are very optimistic to bring the mine back to one of the top ten mines in the world,” said Roux.
This comes as the miner as part of its operations readiness this month concluded a water supply commitment agreement and a repayment agreement for the mine’s share of funds invested in the construction of a water pipeline to supply mines in the Erongo region.
Langer Heinrich will get uninterrupted bulk desalinated water supplies from NamWater, initially from the Orano plant and eventually from the mooted SS1 Desalination Plant approved for implementation as part of the water supply agreement.
The uranium miner has been NamWater’s customer since the commissioning of the mine in August 2006, consuming on average about 1.5Mm/annum.
Langer Heinrich, which was placed under care and maintenance in 2018 due to a decline in uranium market conditions, is now aiming for production by the first quarter of 2024.
The mine has an existing uranium sales offtake with CNNC combined with the recent successful tender award and the continuing strong uranium market fundamentals.
Paladin’s offtake agreement with CNNC Overseas Uranium Holding Limited is for up to 25% of the Langer Heinrich future life-of-mine production.
The uranium producer early this year secured a tender to supply uranium concentrates to a subsidiary of Duke Energy, a leading Fortune 150 North American power utility.
