"It's shameful that the UDF party wants to take us back to the dark days,"

Mr Gwanda Chakuamba (2003)

search antimuluzi.blogspot.com

Wednesday, October 15, 2008

Paladin inks offtake agreement for new Malawi uranium mine

JOHANNESBURG (miningweekly.com) – ASX-, TSX- and NSE-listed uranium
producer Paladin Energy has signed a supply contract with an Asian
power utility for the delivery of 1,5-million pounds of uranium, the
firm reported on Wednesday.

The uranium would be produced by the
company's 85%-owned Kayelekera uranium project, in Malawi, and would be
delivered from 2009 to 2011, "at prices reflective of the longer-term
nature of the contract", the company stated in a quarterly report.

The 3,3-million pounds a year uranium project is now 75% completed, Paladin said.

The
openpit mining activities were also in full operation, with the focus
on opening up ore zones. While ore had not yet been uncovered, the pit
was on schedule to deliver ore readiness by March next year, when the
plant would be commissioned.

Meanwhile, sales from the company's
Langer Heinrich uranium project, in Namibia, during the quarter ended
September 2008, totalled $51-million, comprising 878 000 pounds of
uranium at an average realised price of $58/lb.

Paladin said that this brought sales in line with its original contract schedules.

During
the quarter, Langer Heinrich achieved its initial production target of
2,6-million pounds a year of uranium, with the work on a stage-two
expansion already under way.

Paladin is also considering a
stage-three expansion to increase output to about six-million pounds of
uranium a year by the end of 2010. A study on this will be completed by
November and presented to the company's board for approval.

Further,
the company is exploring the potential of heap leaching the low-grade
ore that was being stockpiled at the project. An initial leach-test
programme is under way in Johannesburg.

If this proves successful, the company will implement on site investigations.

Paladin
expects production at the Langer Heinrich and Kayelekera mines to
amount to 3,6-million pounds a year of uranium during the 2008/9
financial year.

This would increase to 6,6-million pounds a year of uranium during the 2009/10 financial year.

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