Mining of uranium to start next year
Mining of uranium to start next yearBy Chiwoyu Sinyangwe
Tuesday April 22, 2008 [04:00] Print
GOVERNMENT is set to start issuing mining licences for uranium this June as the International Atomic Energy Agency (IAEA) approves Zambia’s new regulations on Uranium, mines minister Dr Kalombo Mwansa has announced.
And African Energy Resources (AER) Zambia Limited has spent about US$5 million in exploration works at the Chirundu Uranium joint venture project and that the company expects to start mining activities by last quarter of 2009, according to project manager Wilscort Banda.
Speaking in Southern Province last week where he went to inspect the progress on uranium explorations, Dr Mwansa said the law to cover for the mining, storage and transportation of uranium would be ready by June this year.
Dr Mwansa insisted that the government would be ready with the regulations on the mining storage, and transportation of uranium before any of the companies exploring for the energy mineral could reach production stage.
He also said that the government would start issuing mining licences for uranium by June this year and that the regulations would encompass the proposed mining, milling and transportation of uranium and other radioactive minerals in the country.
“We have almost completed finalisation of the regulation that would enable us supervise, licence production of storage and transportation of Uranium to consuming destinations,” Dr Mwansa said.
“The regulations would be ready in the next two months. Much of the work has been done and the United Nations in charge of uranium regulations has had a look at our regulations and at our programme and we are now just finalising them and making them part of the law as a formal statutory instrument and that should done by end of June. I hope companies like Omega Corporation Minerals that are already exploring for Uranium would be among the first ones to be issued with these mining licences.”
Among the companies exploring for uranium in the country include African Energy which is which is exploring uranium jointly with Albidon Zambia Limited at the Chirundu Uranium joint venture project as well as the Kariba Valley joint project.
Other companies include Omega Corporation Minerals Limited of Canada which is searching for uranium in Mutanga area in Siavonga, Southern Province while Equinox Minerals Limited has also reported heavy presence on Uranium at its Lumwana Mine in North-Western Province.
And Dr Mwansa also disclosed that the government did not have immediate plans of starting value-addition process for uranium inform of generating electricity from the energy metal.
He said despite the energy crisis that the country has been plunged into, the government only wanted to use uranium for “economic” benefit to the country and not as an alternative source for energy.
Energy experts estimate that about 200 tonnes of Uranium Oxide (U3O8) are required to produce 1,000 megawatts of electricity for one year, slightly higher that the 900 megawatts of power that can be produced by Kafue Gorge hydropower at its optimum capacity.
“Uranium mineral can be transformed into energy but I am not sure we as Zambia are ready to do that just yet,” said Dr Mwansa. “It is a long-term project which I don’t think we will be able to do in the next 10 years. But for us we are looking at giving employment to our people and earning us some more money into the coffers through taxes but the question of transforming Uranium into energy is a long-term development which is not for the immediate concern now.
And obviously the coming of uranium mines is welcome because it will help in our programme of diversification from the tradition copper and cobalt mining that Zambia has been known for a long time and also helps in the diversification of mining from tradition Copperbelt to other areas like Southern Province.
And in terms of economic growth, it will definitely add to our Gross Domestic Product, increasing employment levels and the general uplifting of the welfare of the people around the area of mining because mining has the capacity to transform areas into phenomenon economic growth immediately when you see mining growing, other activities like agriculture also growing.”
And Banda said the construction of the uranium mine on the Chirundu Uranium was expected to start next year.
Banda also explained that although uranium mining provided a lot of anxiety, it provides the cleanest source of fuel for generating base load electricity with, with very low greenhouse gas emissions.
He also said the AER projects could deliver had the Chirundu Uranium joint venture project had the capacity to deliver enough uranium to produce 1,000 megawatts of electricity per year for almost 17 years at the current resource and that approximately 16 per cent of the current world electricity base load provided by nuclear was likely to rise significantly over the next 20 years particularly in China, Russia, India and South Africa.
“This demand is likely to rise significantly over the next 20 years because if you look at the current trends, there is just more and more demand for power and I think the hydropower is not just meeting that is giving a sharp rise in uranium prices because everyone is now going nuclear energy,” he said.
AER has two uranium joint ventures with Albidon Zambia Limited namely Chirundu joint venture which consists of Njame and Gwabe uranium deposits, while the Kariba Valley joint venture projects encompasses Chisebuka uranium anomaly and Namakande Uranium anomalies.
“One tonne of uranium oxide (U3O8) produces as good as 15, 000 tonnes of energy as coal would produce and about 9,000 tonnes as oil would produce…so uranium is quite powerful and also very clean source of energy,” Banda said. “So you can see that you don’t need lot of uranium to generate lots of power. Just 9.1million pounds of uranium would generate that much fuel for 17 years and so I think that would be a good approach if everything goes well in our project.”
The Chirundu Uranium joint venture project is said to contain approximately 9.1 million pounds in uranium resource.
Banda also said the AER is expected to deliver the first uranium cake by the fourth quarter of next year.
“We just completed a pre-feasibility study and anytime we should be proceeding with the bankable feasibility. According to our schedule, we are suppose to come with it by the last quarter of the year after which we will proceed with construction and the like and the first delivery of uranium is scheduled for the last quarter of 2009 assuming that all the permitting go through. So come late 2009, we are doing the first uranium deliveries,” Banda explained.
He also said AER, an Australian energy company focused on Uranium projects in Zambia, Botswana and Malawi, had the capacity to run a successful uranium mine.
“African Energy board has got widespread experience in developing mines in Africa. Munali Nickel is the best example, Gallery gold in Botswana, Sally Malay Nickel in Australia and Olympic dam which has uranium, copper and gold deposits are also best examples where Albidon and AER directors where directly involved. So we have a lot of experience in both explorations and mining industry, so there is no doubt that they will deliver the standards.” said Banda.
Labels: IAEA, KALOMBO MWANSA, MINING, URANIUM
posted by MrK @ 4:55 AM
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