Uranium miner Paladin Energy Ltd says its confidence in the...

Uranium miner Paladin Energy Ltd says its confidence in the future strength of the uranium market underpinned a $US50 million ($A61.2 million) expansion of its flagship Langer Heinrich mine in the African nation of Namibia.

General manager technical project development David Marsh told the Paydirt Africa Down Under Conference in Perth the company would lift annual production to 3.6 million pounds (Mlb) during the current financial year.

Mr Marsh said there had been some recent operational problems at the mine - which was bought for only $US15,000 ($A18,360) in 2002 - so Paladin fell short of its 2007/08 financial year production target of 2.6 Mlb, with actual output of only 1.71 Mlb.

But he expects the mine will return to nameplate production levels during the second half.

Mr Marsh said the expansion was well underway, with construction half way towards its slated completion by the end of this calendar year.

The company expects the mine will ramp up to its expanded production level by May next year.

It also aims to ultimately embark on a further expansion project at Langer Heinrich, bringing annual production capacity up to 6 Mlb, with mechanical installation expected to be complete by the second quarter of 2010.

Paladin hopes to lift its annual production rate at its African operations to 9.3 Mlb by 2011/12, with about a third of this coming from production at the new Kayelekera mine, which is under development and on track for commissioning in January.

About 500,000 lbs of uranium will be produced at Kayelekera in the current financial year.

"Next (financial) year, we're looking at close on 3 Mlb out of Kayelekera and nameplate 3.6 Mlb out of Langer Heinrich," Mr Marsh said.

"We believe that our ramp up in production is in line with how we believe the demand for uranium is going to increase in the next few years.

"We're looking to develop more projects and have got a lot of exploration on the go in Africa and Australia, and are continually looking to add to our portfolio.

"We're not a one project company and like to have a sausage factory of projects working through.

"We try to keep a train of events happening so we've always got projects coming on line."

He said Paladin was keen to assess potential mergers and acquisitions.

"As (managing director) John (Borshoff) said recently, 'eat or be eaten'.

"We believe we have the capability to become a major global uranium supplier.

"We've got 320-odd million pounds in resources and believe there is upside potential in that resource side.

"And we'll build our strength through geographic diversity.

"We believe we've got the expertise in house and the funding to fulfil our aspirations."