Paladin Energy Limited
(ASX:PDN) has suspended production at its Kayelekera Mine in Malawi until it can be resumed on a profitable basis.
The uranium producer plans to put the operation on care and maintenance until the price of uranium recovers. Paladin says the move will preserve the remaining ore body until a sustained price recovery occurs.
Managing Director John Borshoff believes the decision is in the best long term interest of all stakeholders, including the Government of Malawi.
Shares in Paladin Energy lifted 3.16 per cent on Friday to the end week at $0.49 before the announcement was made.
The latest news comes after Paladin Energy reached agreements with its lenders to refinance the Langer Heinrich and Kayelekera project finance facilities in January.
Paladin Energy reported a net loss of $511 million in the 2013 financial year.
