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The Namibian Government has just granted the mining licence for the Langer Heinrich project, which is only 80km from the country's deepwater seaport of Walvis Bay.

Based on a bankable feasibility study prepared by GRD Minproc, the project will produce 2.6 million pounds (1180 tonnes) of yellowcake per annum, beginning around September next year, for a gross income of $US70 million.

Depending on demand, Paladin will consider lifting output in year or two by a further 1.1Mlbs per annum.

Langer Heinrich was discovered in the 1970s by General Mining & Finance Corporation (Gencor), which evolved into Billiton and is now part of BHP Billiton. In 1980 Gencor completed a $US8.5 million feasibility before going cold on the project as demand for uranium fell away.

Australian company Acclaim Uranium (now Aztec Resources) took up the project and completed an updated feasibility for $US1.26 million but curtailed development because of the continuing depressed uranium market. Paladin acquired it in 2002.

Borshoff said Namibia was pro-mining and already had the Rossing uranium mine, controlled by Rio Tinto.

GRD Minproc is also advancing a bankable feasibility study on Paladin's Kayelekera project in Malawi, a small, southern African nation with a population of about 12 million people.

The Malawi Government is keen for Kayelekera to be developed as it would be a huge boost to national prosperity -- a breadwinner that would slot in third behind tobacco and sugar cane.

The project is earmarked to commence production in mid-2008 at a rate of 2.2Mlbs per annum. By that time, Paladin could be the fifth biggest uranium producer in the world.

Kayelekera was discovered by British utility Central Electricity Generating Board in the early 1980s and it spent $US9 million over eight years, culminating in a 1991 full feasibility.

Because of the poor market outlook in 1992 CEGB quit and the licence was later picked up by Australian John Tarrant. In 2000 it was transferred to Paladin.

Based on known resources of 22.2Mt grading 0.1% uranium oxide at Langer Heinrich and 8.1Mt grading 0.13% uranium oxide at Kayelekera, Paladin estimates a mining life of 25 years at the former and 10 years at the latter.