The decision to suspend Kayelekera uranium mine production comes as the price for uranium oxide is decreasing continuously and unsustainable cash demand to maintain the loss-making operation at the mine.
The Paladin managing director/CEO John Borshoff said that the Kayelekera mine operation would resume only when it was profitable to do so.
"By placing Kayelekera on care and maintenance now, we are preserving the remaining value of the ore body until it can be mined profitably to make a positive contribution to the Paladin Group," Borshoff added.
"We will not contemplate any such an expansion until uranium prices reach at least US$75/lb and are sustainable at or above this level."
The suspension, which involves placing the mine operation on care and maintenance until the price of uranium recovers, will lead to significant level of redundancy during the period.
