LANGER HEINRICH URANIUM

LA NGER H E I NR I CH U R A N I U M

Economic growth in Namibia dictates future uranium opportunity www.paladinenergy.com

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Simon Solomons

Managing Director and General Manager Paladin Energy is a globallyrecognised uranium production company with projects currently in Australia and two mines in Africa. Since 1998, during a period of sustained downturn in global uranium markets, Paladin spent this time accumulating a quality portfolio of advanced uranium projects, each exhibiting further production potential to rise and meet demand. Langer Heinrich Mine in Namibia is its flagship project.

After three profitable expansions, Langer Heinrich Uranium now looks to complete the next stage of development, once uranium prices achieve a much-needed boost Writer: Matthew Staff Project Manager: Arron Rampling anger Heinrich Uranium (Pty) Ltd, 100 percent owners of Langer Heinrich Mine (LHM) in Namibia, has successfully reached Stage Three expansion targets and is now operating in excess of the nameplate level 5.2Mlb pa (million pounds per annum) of U3O8 as it looks to complete the next stage of development at a time where higher uranium prices will dictate future expansion opportunities.

“With a refocused mandate, Stage Four has presented a unique opportunity for improvement and optimisation, resulting in an expected future feasibility of increasing production to 8.7Mlb uranium ore and upgrading the plant’s facilities,” said the Company.

Moreover, experts predict that the

accelerated GDP growth levels, which currently stand at 5.3 percent, should continue to remain strong in the coming years, driven by increased mining activities as new mines start production and the export market grows.

“Various piloting and testing programmes will continue in order to consider the available options and enhancements in preparation for the future expansion of our mine in line with economic development. Our goal will be to increase production with reduced unit costs and improve process efficiencies, while reducing feed grade into the plant to the reserve average of 520ppm uranium ore,” added the Company.

As a result of the work undertaken, and its achievement of an ISO 14001:2004 environmental management system

20 years LHM has a project life in excess of 20 years

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certification, the Langer Heinrich Uranium project is in an excellent position to respond to these market conditions and expand its operations as soon as the price is sufficient. “The certification applies to our entire mining operation, including open-pit mining and production of uranium oxide in Namib-Naukluft National Park,” cited the Company.

Stabilising the spot price

Located at the foot of the Langer Heinrich Mountain in the Namib Desert, on the western side of central Namibia, LHM is 80 kilometres east of the major deepwater port at Walvis Bay and the coastal town of Swakopmund, and spans across a 15 km-long tertiary paleo-drainage system containing seven contiguous mineralised zones. When production commenced after the official opening of the mine by the President of

In an excellent position to respond to market conditions

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The mine can produce up to 1,180t of uranium oxide concentrate from 1.5Mt of calcrete-hosted ores a year

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Taking advantage of Namibia’s mining infrastructures

Namibia in March, 2007, LHM became the first conventional uranium mining and processing operation to be brought online in more than a decade.

With an original budget of US$92 million and overcoming significant cost pressures during the 20-month construction term, the Mine has successfully completed three stages of expansion, producing at a rate of 5.7Mlb per annum.

Protea Mining PROTEA MINING CHEMICALS – “MORE THAN JUST A CHEMICAL SUPPLIER” Protea Mining Chemicals is a member of the Omnia Group (Pty) Ltd, a subsidiary of Omnia Holdings Limited, a manufacturing company which is listed under the chemicals sector of the Johannesburg Stock Exchange (JSE).

Omnia has three major operating divisions: Omnia Nutriology (for fertilisers and plant nutrients), Bulk Mining Explosives (or BME, the market leader in the supply of explosives) and Protea Chemicals (incorporating the Protea group of companies).

The goal of Protea Mining Chemicals is to become the market leader in supplying a full range of industrial and speciality chemicals to the mining industry throughout subSaharan Africa and then to maintain this market leader status. At present, Protea Mining Chemicals supplies a broad range of performance mining chemicals and a full range of commodity chemicals to customers throughout sub-Saharan Africa, including South Africa, Namibia (as Protea Chemicals Namibia), Democratic Republic of Congo, Zambia, Mozambique, Malawi, and Zimbabwe.

Protea Mining Chemicals have extensive experience and an intimate knowledge of the processes employed in the mining industry, which allows us to provide an invaluable service and assistance to customers in process troubleshooting and problem solving. Integral to Protea Mining Chemicals’ growth strategy, is our commitment to establishing preferred partnerships with key customers, thereby allowing us opportunities

to identify and optimise certain aspects of their production processes and therefore, the customers’ overall profitability.

Protea Mining Chemicals is committed to promoting Safety, Health, Responsible Care®, the Environment and Quality (SHERQ) awareness. To this end, Protea Mining Chemicals, including Protea Chemicals Namibia, is ISO 9001, 14001 and 18001 certified.

Protea Mining Chemicals is a signatory to the Responsible Care® programme, maintained by the Chemical Allied Industries Association in South Africa. We are committed to safe and responsible handling of chemicals, with the philosophy of “cradle to grave” management.

Protea Mining Chemicals uses the skills of Omnia’s Engineering services to create a business that can provide in-house engineering capabilities to design and construct reagent handling plants for our customers.

248 Dyson Road Wadeville 1422 T+27 (0) 11 323 3000 F +27 (0) 11 827 8414 Port of Walvis Bay Rikumbi Kandanga Road Walvis Bay, Namibia T +264 64 221 540 F +264 64 221 541

www.proteachemicals.co.za

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Eemplo s u t uc

Providing professional transportation services to the public, corporate institutions and tourism industry throughout Namibia & South Africa.

What was once started with only one bus in its fleet grew into a transportation giant and is now proud to have a fleet of more than 110 vehicles, ranging from 80 seated buses to luxury 70 seated buses as well as a variety of smaller buses down to 13 seated Toyota Quantum mini buses.

Coach & Bus Transfers and Hire Transfers Airport Transfers Bakkie Rentals

SWAKOPMUND OFFICE | KANTOOR (HEAD OFFICE) Einstein Street | Einstein Straat New Industrial | Industrieel Swakopmund Tel: 064-402299 | Fax: 064-405912 www.sunshinenam.com

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ke a booking!

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The Namibian government actively encourages the growth of its mining industry

“As of June 2014, the mine contained 22.4 metric tonnes of measured resources at an assumed grade of 0.055 percent U3O8, with the total ore reserves including proven, probable and stockpiles were 103.8 tonnes of 0.052 percent grade, containing 53,917 tonnes of U3O8.

“These reserves form the basis of the continuing life of mine plan for the project and the revised mine plan allows a project life in excess of 20 years,” explained the project details on the website.

Due to the current stable economic and political environment, Langer Heinrich Uranium has been able to take advantage of Namibia’s mining-related infrastructures such as roads and port connections; and its already diverse mining industry involving not just uranium, but diamonds, gold and base metals.

“The Namibian government actively encourages the growth of its mining industry, which is a solid contributor to the country’s economy via a strong export market, and we are proud to play a part in this,” detailed the Company.

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53,917 tonnes

The total ore reserves including proven, probable and stockpiles were 103.8 tonnes of 0.052 percent grade, containing 53,917 tonnes of U3O8

Sunshine Tours

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unshine Tours started its humble beginnings in 2003 and was established, out of pure passion for the industry, by its founder and managing member, Winston. A. Greyling with the aim of providing professional transportation services to the public and corporate institutions as well as to the tourism industry throughout Namibia and South Africa.

What was once started with only one bus in its fleet has grown into a transportation giant and is now proud to have a fleet of more than 110 vehicles and it is this large variety gives us the flexibility to cater to almost all leisure and corporate transport needs.

Vehicle maintenance is at the top of the list of priorities at Sunshine Tours, as it is no secret that proper vehicle maintenance and safety go hand in hand. To support this, all our operational depots throughout Namibia are equipped with use of specialized maintenance and cleaning programmes to ensure all vehicles are kept in immaculate condition all year round.

In addition to this, all Sunshine vehicles are fitted with real time satellite tracking, enabling us to monitor the whereabouts and speed profiles or

LOGO

access driver exception reports of any vehicle at any time. The vehicles are also fitted with fire extinguishers and first aid kits to further enhance our focus on safety.

Sunshine Tours is not only an equal opportunity employer but also proud to be a wholly Namibian owned company, in partnership with Optimal Investment (Pty) Ltd, a Namibian BEE entity. We are undoubtedly your best choice for passenger transport, for the public as well as the corporate and tourism industry, operating across Namibia and pride ourselves in offering efficient and more importantly safe services.

Sunshine Tours Namibia always endeavours to deliver a safe, prompt and efficient service to all our customers.

Our partnership with Langer Heinrich Uranium (Pty) Ltd sees us providing transportation of employees to and from their sites and was one of our first relationships to be formed.

T 064 405912 E 064 402299 www.sunshinenam.com

A MEMBER OF THE GECKO AFRICA GROUP OF COMPANIES

Gecko Namibia (Pty) Ltd is a Namibian owned, diversified company in mineral resources and services to the mining and construction industry.

Since the Group’s establishment in 2008 it has aspired to leave a legacy that will be of real and sustainable benefit to future generations.

Gecko provides the following services: • Opencast mining • Design, manufacture and operation of both fixed and mobile mineral processing plants • Exploration drilling • Civil construction • Materials handling • Metallurgical laboratory services

Contact us:

Email: info@gecko.na / Tel: +264 61 225 826 /

/ Fax: +264 61 225 304

We transform

natural resources into prosperity

/ 8 Sinclair Street, Windhoek, Namibia

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Expansive history

After a government-sponsored airborne radiometric survey of the area, the Langer Heinrich deposit was discovered in 1973. Despite its discovery and subsequent eight-year project evaluation, the Mine was unable to begin sustainable operations due to depressed uranium prices.

In 1998, LHM was sold to the Australian-listed public company, Acclaim Uranium NL, who completed a highly favourable pre-feasibility study for the area. Once again, adverse uranium market conditions in the late 90s and low prices curtailed development.

Despite this, Acclaim sold its holding in Langer Heinrich Uranium (Pty) Ltd to Paladin Energy in 2002. Following this acquisition, Paladin initiated a bankable feasibility study (BFS) which was completed in April, 2005.

The Company strives to make operations more profitable

The Namibian government actively encourages the growth of its mining industry, which is a solid contributor to the country’s economy via a strong export market, and we are proud to play a part in this

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5.7 million pounds a year

The mine has successfully completed three stages of expansion, producing at a rate of 5.7Mlb per annum

“The BFS confirmed that the project was capable of generating highly attractive returns using the defined reserves only, and with construction and staged commissioning achieved in December 2006, the mine officially opened in early 2007 with precise goals to make operations profitable after remaining unused for almost seven years,” highlighted the Company.

Given the initial successes, a Stage Two expansion programme was completed in June 2009, which involved a US$50 million investment to boost the mine’s production to 3.7Mlb a year. The Company further detailed: “This involved upgrading the recycle crushing circuit and feed conveyor, expanding the cyclone circuit and installing a new pre-leach thickener, additional leach capacity, heaters, highdensity thickeners and IX columns. It also involved the expansion of the new drier, including the feed arrangement, increasing the capacity of reagent dosing, the construction of additional motor control centre (MCC) buildings and upgrading the tailings disposal.”

In order to deliver the additional feed required for the Stage Two expansion, LHM had to increase its mining fleet and enhance its logistical capabilities to ensure safe passage of the final product to the port.

Additionally, Stage Three expansion was

Gecko Nambia G

ecko Mining is a specialist service provider to the mining industry throughout Africa. As a member of th Gecko Africa Group of Companies, we are committed to offering professional, effective and all-inclusive mining solutions to clients. Our strategic alliance with affiliate companies allows complimentary services such as mineral exploration, mine planning and product beneficiation to be offered as an inhouse capability.

It is our mission to become a long-term alliance partner to our clients to ensure the successful planning, design and execution of each client’s project to the mutual benefit of not only all alliance partners but also their employees, stakeholders and the community at large. Gecko Mining has a management structure that is highly competent with all employees well experienced in their respective fields. This allows for effective management and efficient mining of a wide range of resource deposits.

Typical activities would include topsoil stripping, drilling and blasting, dozer pushover, truck and excavator removal of overburden, waste and ore, relevant pit services and the subsequent rehabilitation process and related activities. We are further able to offer a complete solution to clients’ mineral and materials handling, stockpiling and loading requirements.

Gecko Drilling service the needs of the mining and mineral exploration industries in Namibia and Southern Africa through the provision of exploration drilling and drill and blast services, offering exploration drilling solutions across a diverse range of commodities using the expertise and experience of our highly skilled drillers.

Gecko’s experienced and dedicated team is committed to ensuring that our clients’ objectives are met effectively.

We have successfully undertaken many challenging drilling contracts throughout Southern Africa using our diversified fleet of drill rig types.

Gecko owns and operates a fleet of Reverse Circulation (RC) and Diamond Core (DC) drill rigs, with all the required support equipment including modern Isotainerbased camp facilities, all-wheel drive support and supply vehicles and trucks, air boosters and compressors and a large fleet of water bowsers and ancillary plant and machinery. All our drilling operations are well supported through our comprehensively equipped hydraulic, mechanical and machine workshops.

T +264 61 225 826 F +264 61 225 304 E info@gecko.na

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Expansion will occur once there has been a substantial increase in uranium prices

completed in March 2012 which saw annual production increase to 5.29Mlb of U3O8 a year and further improvements to the above production methodologies listed in Stage Two. The Company continued: “Stage Four began in the last quarter of 2012 when we received environmental impact assessment approvals from the Namibian government. We have now begun the bankable feasibility study which will see us expand the mine geographically.”

“The feasibility study for Stage Four expansion is investigating the viability of setting up a new 8.7Mlb per annum production plant adjacent to the existing one. It will also investigate the potential of heap leaching or upgrading the material and mineralised waste rock with a below cut-off grade to recover an additional 1.3Mlbs of uranium. As stated previously, the expansion will not occur until there has been a substantial increase in incentive uranium price.”

The latest piece of significant news from the Company came in July last year, when Paladin Energy entered into an agreement to sell a 25 percent stake in LHM to a wholly-owned subsidiary of China

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US$92 million

The mine was officially opened on 14 March, 2007 after an initial investment of US$92 million

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PO Box 96221 Windhoek, Namibia • Tel: + 264 61 235 540 • Fax: +264 61 232 375 • www.nec-namibia.com • nicolaas@namstahl.com

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PROCESSING STEP 1 Ores are processed using conventional methods including ore beneficiation, alkaline leaching, countercurrent decantation, ion exchange, precipitation and calcining

STEP 2 Agglomerates are broken down into individual grains through crushing and scrubbing

STEP 3 Uranium minerals are separated from the surface of the grains

STEP 4 High-grade fines or leach feed are separated using cyclones and screen methods from barren discard material

STEP 5 Once thickened, the leach feed slurry is conditioned with carbonate and bi-carbonate before it is heated and pumped to the leach circuit

STEP 6 The slurry is then fed through a counter current decantation (CCD) circuit, where high-grade uranium solution is separated from solids

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After undergoing additional clarification, the solution is pumped through fixed bed ion exchange (IX) columns.

In the IX columns uranium is recovered on to resin

STEP 8 The uranium is removed from resin before being precipitated as sodium diuranate

STEP 9 After being re-dissolved with sulphuric acid, the uranium is further precipitated with hydrogen peroxide.

The product delivered is dewatered, dried and stored as uranyl peroxide

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LHM is 80 kilometres east of the major deepwater port at Walvis Bay and the coastal town of Swakopmund

National Nuclear Corporation, CNNC Overseas Uranium Holding Limited.

“This agreement allows CNNC to purchase its pro-rata share of product at the prevailing market spot price and it is expected that the agreement will enhance the long-term growth and development of the Langer Heinrich operation,” emphasised the mining house.

Predicting market growth

Given the world’s divided opinion on nuclear energy, particularly since the March 2011 Great East Japan Earthquake and resultant tsunami which inflicted severe damage of the Fukushima Daiichi reactors, most countries have radically overhauled their comprehensive safety review of existing nuclear power plants; placing

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several projects on hold and having a knock-on effect that has caused a downturn in uranium mining.

Post-Fukushima though, worldwide reactor plans have been re-affirmed and work has continued on reactors under construction.

Furthermore, the spot price for uranium has been showing signs of recovery since the global financial crisis, however for the first time since 2005, uranium reached a low point of below US$30 per lb of U3O8 in mid-2014, but this has not deterred Langer Heinrich Uranium as the Company is confident that the market will recover, given that the economy shows no signs of slowing down more generally. “The medium to long-term outlook for uranium is still extremely buoyant and is underpinned by the increasing demand for uranium to fuel existing and new reactors and the inability of the current uranium supply sector to significantly increase production.

“In line with this, many of Japan’s power plants are due to be restarted in 2015, which is an important step forward after the past four years since Fukushima. The pace of the restarts may remain slow, but the long-term outlook remains encouraging,” said the Company.

Worldwide, there are now 72 nuclear power plants under construction, ten more than at the time of Fukushima. This means there are 435 operational reactors that consume more than 170Mlb per annum of U3O8, and the Paladin Group forecasts that global uranium demand will reach 230Mlb per annum by 2020 as Langer Heinrich Uranium concluded: “The global uranium production industry will struggle to meet this rapid growth in demand, however, we are in a strong position and can further increase production in line with this forecast when necessary via a Stage Four development.”

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We specialize in:

Welding repairs

Metal Fabrication

Gearbox & PumpOverhauls

Milling

Centrifuge, Impeller & Rotor Ballancing

Centrifuge & screw feeder overhauls

Portable Line Boring

General Machining

Line Boring Specialists’ services will meet the customers requirements with the following unique capacity / functionality or service options: • New parts cost savings options (replacement of worn our components is not necessary anymore).

• Transport cost saving options (on-site repairs).

• Production down-time saving options (focusing on line boring results in better turnaround and less down time).

Tel: +264 64 40 50 55 Cell: +264 (0) 81 122 5116 Fax: +264 64 40 50 66 Email: info@namiblbs.com / lbs@iway.na Web: www.namiblbs.com

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Erf 3981 B, Extension 10 New Industrial Area, Swakopmund, Namibia T: +264 64 413 450 • F: +264 64 413 451 E: contact@lhupl.com

www.paladinenergy.com