Paladin uranium production back on track

After teething problems with its processing plant, uranium miner Paladin Energy Ltd has achieved full production during the September quarter at its Langer Heinrich mine in Namibia.

In a statement today, the company said the mine had reached nameplate production, with an output of 650,560 pounds of uranium oxide during the three months to the end of September.

Paladin said the quarterly production figure amounts to 2.6 million pounds of uranium oxide on an annualised basis. The mine's stage 1 design is specified at 2.6Mlbs.

"The Board regards this as a significant milestone event for the Company highlighting that Paladin is establishing itself as the premier emerging uranium mining house," Paladin said.

"This achievement should provide further confidence that the current Stage II expansion which is underway and the follow up Stage III expansion that is contemplated will reach their stated production targets with the group showing strong evidence of its production and operational competency. "

The Stage 2 expansion is projected to cost $US50 million.