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Paladin Energy to cut jobs and expenditure

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Perth-based uranium miner Paladin Energy has announced more job and pay cuts to come in response to sluggish uranium prices.

The company, which operates two uranium mines in Africa, announced cuts will be made to employee numbers at its head office, and the base salaries of managers will fall by 10 per cent.

An exact number for the latest round of job cuts was not announced, however the company has already made 14 office staff redundant over the last year.

The company’s corporate and exploration costs are set to be slashed by $US10.8 million, a 24 per cent reduction.

While capital expenditure will be cut by $US12.4 million over the next two financial years.

The miner has also signalled costs at its mines will be scaled back, with the Kayelekera mine in Malawi set for a 22 per cent decrease, while costs at Langer Heinrich in Namibia will be reduced by 15 per cent.

In a statement released yesterday, Paladin said optimisation strategies “have now become even more pertinent with the further incremental weakening of the uranium spot price”.

However the company said the price decrease should not take away from the “strong fundamentals” of the commodity in the mid to long term.

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