Paladin completes Kayelekera sale

18th March 2020 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

PERTH (miningweekly.com) – ASX-listed Paladin Energy has completed the divestment of its 85% stake in the Kayelekera asset, in Malawi, reducing the company’s forecast capital expenditure by around $5-million a year.

Kayelekera was idled in 2014 on the back of low uranium prices. The project includes a 1.5-million-tonne-a-year processing facility and is estimated to host some 28.7-million pounds of uranium oxide.

Paladin on Wednesday said that with the sale of Kayelekera now finalised, its focus would remain on the Langer Heinrich operations, in Namibia, where an update on the economic parameters of the project was expected by the fourth quarter of this year.

“We have successfully reshaped the company around our proven Langer Heinrich uranium operations in Namibia. The underlying quality of Langer Heinrich provides the company with strategic optionality and a path forward to returning the company to profitable operations under the right uranium demand environment,” said Paladin CEO Ian Purdy.