Paladin Energy (ASX: PDN) has resumed operations at its Langer Heinrich Mine (LHM) in Namibia after a rare and severe weather event forced a temporary shutdown. The site was hit by a one-in-fifty-year rainfall event that disrupted logistics, damaged infrastructure, and temporarily halted mining plans — putting a dent in the company’s efforts to ramp up uranium production.
While no significant damage was reported to the processing plant itself and all personnel are safe, the storm left its mark. Flooded haul roads, waterlogged ore stockpiles, and damage to civil infrastructure all contributed to the pause in operations. Access to the mine has now been re-established, and the processing plant is back online, though it will take time for the chemistry and inventory to stabilise as operations return to normal.
Paladin had been aiming to accelerate mining at LHM to bring higher-grade ore into the blend — a key step toward hitting its 6 million pound per annum production run rate by the end of 2025. Unfortunately, the rain event has delayed the mobilisation of equipment and personnel, and water ingress into the open pits means the start of mining will also be pushed back.
As a result, Paladin has withdrawn its production guidance for FY2025. The company still expects production to improve in the second half of CY2025, but it has acknowledged that reaching nameplate capacity this calendar year is now unlikely.
Despite the setback, there are still positives. Mining contractor Trollope Mining is actively mobilising, permits are in place, and blasting contractors are on-site. Plant recoveries have been strong, and water supply improvements offer a solid base for future ramp-up once mining begins.
Investors can expect more clarity in the March 2025 quarterly report (due in April), with fresh production guidance likely when FY2025 results drop in August.
