JOHANNESBURG (miningweekly.com) – ASX- and TSX-listed uranium producer Paladin Resources[should be Paladin Energy] would complete the expansion of its Namibian Langer Heinrich mine to 3,7-million pounds a year, in the June quarter, the company reported on Friday.

In the financial report for the quarter ended March, Paladin said that the Stage 2 production expansion project was undergoing commissioning and finalising construction. The nameplate design throughput would be reached in July.

Paladin would present that the Stage 3 expansion proposal to its board for approval next month.

Production at Langer Heinrich reached 685 874 lb of uranium oxide (U3O8) during the quarter under review. This was the third consecutive quarter that the project exceeded nameplate design production.

To date, expenditure on the expansion of the project was recorded at $35-million.

During the quarter under review, sales from Langer Heinrich were 453 000 lb, at a value of $24,7-million, representing an average sales price of $54,50/lb.

Paladin also reported that its 3,3-million pounds a year Kayelekera uranium project, in Malawi, started commissioning in January of this year, while the production ramp-up started in late April.

The $200-million project was currently 97% complete and remained within 5% of budget.

Paladin stated that the bulk of the remaining construction activities were now focused on the completion of the sulphuric acid plant.

The plant commissioning and ramp-up phase was progressing well to date and the ramp-up schedule was being maintained with nameplate production expected to be reached by January.

Paladin stated that it was in the process of finalising documentation for a third uranium sales contract in support of the Kayelekera uranium project. The agreement commits Kayelekera to deliver 860 000 lb U3O8 to a North American utility during 2012/13 at sales prices, which were reflective of the current long-term uranium price.

During the quarter under review, Paladin reported a gross profit of $10,7-million, compared with the $7,4-million recorded in the corresponding period of 2008. The year-on-year results reflected the improved operating performance at Langer Heinrich.

The company also reported a basic loss a share of $0,01 a share, which was similar to the figure reported in the previous year.

Paladin also completed its off-market takeover of ASX- and TSX-listed Fusion Resources in the quarter.

Fusion is a minerals exploration company with 100% ownership of several uranium exploration projects in the Mount Isa region of Queensland, and Australia, and a portfolio of interests in copper/gold exploration projects in north Queensland.

The consideration comprised the issue of eight-million fully paid ordinary Paladin shares.