CNNC decides against Langer Heinrich buyout

The Langer Heinrich uranium mine in Namibia will remain under the ownership of Paladin Energy as the company goes through administration after joint venture partner CNNC Overseas Uranium Holdings decided not to exercise its option to acquire Paladin's share of the mine. Paladin owes EDF $277 million. million,

The Langer Heinrich uranium mine in Namibia will remain under the ownership of Paladin Energy as the company goes through administration after joint venture partner CNNC Overseas Uranium Holdings (COUH) decided not to exercise its option to acquire Paladin's share of the mine. Paladin owes EDF $277 million.

Langer Heinrich has reserves of 46,500 tonnes of uranium, at a cut-off of 0.01% uranium-235. In 2015-16 it produced 2161 tonnes of uranium oxide, which was split in line with the owners' respective shares: 75% for Paladin Energy and 25% for CNNC Overseas Uranium Holding (COUH). The mine's holding company was valued at $583 million in July in a determination which put a price tag of $162 million on Paladin's share. COUH has decided not to exercise its option to buy this, Paladin announced today.

Where now for Paladin? (Image: Paladin)

Paladin has been undergoing a balance sheet restructuring since February and is administered by Matthew Woods, Hayden White and Gayle Dickerson of KPMG. Its shares were delisted from the Toronto Stock Exchange in August and will remain in suspension "for at least such a time as it takes to resolce the adminsitration process and potentially longer."

Woods said: "We appreciate COUH's display of support as the joint venture partner. We will work with COUH to preserve the value of the Langer Heinrich mine and to minimise operating risk. COUH's decision allows a solid platform for a restructure of the group in the best interests of all shareholders."

Researched and written
by World Nuclear News