Well failure hits Paladin's output
Production has declined at Australian uranium player Paladin's biggest mine after a well failed, but the company is upbeat about the prospects of exports to Japan and India.
Problems with a pre-leach thickener well caused 12 days of production to be lost at the Langer Heinrich mine in Namibia.
As a result, production at that mine in southern Africa fell by 10 per cent during the March quarter.
Paladin last year sold a 25 per cent stake in Langer Heinrich to the Chinese state-owned Overseas Uranium Holding.
For all its operations, it maintained full year production guidance of 5.0-5.2 million pounds.
Chief executive John Borshoff noted how the Japanese government in early April proposed a long-term energy plan for nuclear energy to provide 20 per cent of the nation's electricity.
Japan derived 30 per cent of its energy from nuclear sources before the 2011 Fukushima disaster.
Mr Borshoff also hailed Canadian uranium miner Cameco's deal with India to supply 7.1 million pounds until 2020.
"While not the first uranium agreement by a western uranium supplier and the Indian government, this contract is being heralded as a watershed event and will likely result in further such contracting in support of the growing Indian civilian nuclear power program," he said.
Paladin shares were up half a cent to 36 cents at 12.45pm.
