WNO reports that representatives of both long-established and more recent mining operations yesterday debated issues related to the current market situation. They looked at patterns from past market cycles and the measures that producers are taking to position themselves now and in the future. Speaking at the World Nuclear Association 41st Annual Symposium in London, Swakop Uranium CEO Zheng Keping said the company Husab project, in Namibia has been ten years in the making. Swakop Uranium is owned by China CGN-Uranium Resources Co, the China-Africa Development Fund and Namibian state-owned mineral exploration company Epangelo.
Mining began in 2014 and the first stage of the processing plant was commissioned in July this year. The mine own sulphuric acid plant, capable of producing up to 1,500 tonnes per day, began operation on 6 September. First production is expected in the coming weeks with the plant ramping up to nameplate over the next year, ultimately producing 15 million pounds U3O8 (5770 tU) per year. Localisation has been an important part of company strategy to ensure sustainable and cost-effective operation, Zheng said, with the company training and developing a workforce that is more than 93% localized. The company expects to reach its target of 95% by early 2017. Energy Fuels chief operating officer Mark Hall looked at the history of the uranium markets to ask whether analogies could be drawn today situation. He said uranium production lags behind uranium price run-ups by about five to ten years, before dropping off again. He identified the coma years, between 1987 and 2005 with low prices, stagnant uranium demand and high inventories, and the renaissance years, from 2004 to 2013 when prices remained above $30 per pound U3O8 as demand was expected to skyrocket, and substantial equity capital was available to mining companies.
Original URL: http://world-nuclear-news.org/articlepost.aspx?id=41123
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