paladin expansion program

from todays newspaper........

Paladin eyes new mine projects
Thursday Mar 13 07:31 AEDT
Australian uranium miner Paladin Energy said on Wednesday it was looking at start-up mining projects in Asia and North America and favoured investments in production by 2010 at the latest.

"We are looking right now in Asia as well as North America ... We will see some activity on that front this year," Dustin Garrow, executive general manager of marketing for Paladin, told an investor event.

"The fuel cycle is more than uranium. We will actually be looking further up the fuel cycle."

He said Paladin would also set up its own marketing arm, Paladin Nuclear, in the second quarter, and had allocated around $US75 million ($A80.71 million) for its establishment.




He said the firm had no knowledge of any take-over interest.

"I know there is speculation now growing that Paladin is a take-over target in particular from Cameco ... That is nothing that we are aware of."

The firm now operates the Langer Heinrich uranium project in Namibia, which produces 2.6 million pounds of U3O8 per year. The mine is undergoing expansion with a production target of 3.7 million pounds in 2010.

Paladin has recently invested in back-up power supply in southern Africa to ease electricity shortages there.

"We don't see the power issue as a major risk at Langer Heinrich ... we have ordered a 10 megawatt diesel generating package that will be delivered in the middle of January."

In Malawi, Paladin has started construction at Kayelekera and production should begin from December 2008. The mine is expected to produce 3.3 million pounds U3O8 per year by 2010.

"We are keeping a fairly large percentage of our production uncommitted at this point and that is a reflection on how we see the uranium market developing over the next several years."

Garrow told a Bank of Montreal (BMO) Capital Markets investor event the unit would enable them to seize upon changes in the global uranium industry to offer customers variable contractual and sales proposals beyond the traditional long-term or spot sales transactions.

"Maybe we will not go as far as buying an enrichment plant, but we are taking a much broader perspective," he said.

The decision follows down-stream/up-stream integration in the market with mining firms buying into nuclear reactor constructors and vice versa.

"We want to be engaged in the fundamental changes that are going on,"he said, pointing to large financial institutions like Lehman Brothers holding physical uranium.

The firm will open one marketing office in Europe this year and another in Asia next year.


©AAP 2008