Paladin warns of impact of credit crunch

15 October 2008

Australia's Paladin Energy has warned that the uranium mining industry is not immune to the global financial crisis. In its latest quarterly report the company notes, "The impact of the credit tightness on the supply side of the uranium business will probably cause the deferral or cancellation of some planned uranium projects, especially those at the high end of the cost curve, and reduce the money available for exploration companies, which will only exacerbate the supply-demand imbalance in the future." However, Paladin said, "Reactor construction and forward planning for new plants continues strongly in China and other major Asian countries as well as in Russia. Demand for uranium in the medium to long term remains extremely strong." Paladin announced that output at its Langer Heinrich mine in Namibia during the quarter ending 30 September had reached full capacity of 2.6 million pounds U3O8 (1000 tU) per year.

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