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« The lasers fuelling hopes of unlimited, clean nuclear energy | Main | Stock Trader Update 07 February 2014 »
Monday
Feb102014

Paladin Energy suspends output from key Malawi mine

Chart courtesy of u3o8.biz

TORONTO (miningweekly.com) – TSX- and ASX-listed Paladin Energy on Friday revealed that it had suspended production at its Kayelekera mine, in Malawi, saying the operation was a severe drain on the company’s finances in the sustained low uranium-price environment.

The Perth, Western Australia-based uranium producer with operations in Australia, Africa and Canada said it would place the operation on care and maintenance to preserve the orebody until a sustained price recovery occurred and production could be resumed on a profitable basis.

The company had notified the Malawi government, which has a 15% interest in Paladin’s operating subsidiary Paladin (Africa) Limited (PAL), and would be working with the relevant government authorities to implement the suspension.

Paladin blamed the continued depressed price for uranium oxide (U3O8), which has been severely negatively impacted since March 2011 following the nuclear reactor damage caused by the Fukushima earthquake and tsunami, in Japan, as one of the main reasons for its decision.

During this period, the spot uranium price has more than halved from $72.63/lb before the Fukushima disaster struck, to a current price of $35.50/lb.

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Reader Comments (1)

Cameco are also cutting back and there is an interesting chart on Jet Metal Corp website showing a uranium surplus well into 2020 . The shortage in mining is made up by the US government decommissioning their nukes and other off mine supply e.g. uranium dug up when other mining takes place say for gold

February 11, 2014 | Unregistered Commenteruranium bug

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