African Energy Resources to start uranium mining when metal price improves

African Energy Resources to start uranium mining when metal price improves
By Bivan Saluseki in Siavonga
Mon 04 Oct. 2010, 04:01 CAT

AFRICAN Energy Resources Limited project manager Wiscort Banda has said the company is ready to start mining uranium in Siavonga once the price of the metal improves. And Denison Mines project director for Africa Andrew Goode said uranium was not as dangerous as it had been portrayed in Zambia. Banda said on Friday that the mine had prospected 11 million pounds of uranium in Kariba Valley.

He said once in operation, African Energy would mine about 1.4 million pounds a year once the price was a bit favourable. He said currently, the price of uranium was about US$ 48 per pound (2.8 kgs).

Banda said to break even, the price should be between US $60 and US $70.

“Once price behaves, we will start mining,” he said.

Banda said African Energy wanted to start mining in 2009 but they rescheduled it.
Banda said geologists and engineers project 11 million pounds of uranium with a mine lifespan of eight years.

He said since the price was not very favourable currently, they were using this time to do more exploration and strategising to increase the life span of the mine.

Banda said uranium could either be inhaled through dust emissions or ingested.

He said the company would take all the necessary precautions to make sure people were not affected when mining the metal.

Banda said 150 households would be relocated and provided with better accommodation and other support services.

African Energy controls more than 200km strike-length of prospective rocks in Kariba Valley.

Feasibility studies indicate that this could form the basis of a low-cost 8-year mining operation with production commencing as early as the first quarter of 2012. Exploration programmes in 2010 are expected to define additional resources which may extend the proposed mine life.

And Goode said the mine would relocate 343 people and provide them with necessary items to start a new life.

Goode said the company had agreed with the local people to exhume the bodies within the mining area and rebury them where people would be resettled. Look out for an in-depth story on Siavonga’s uranium mining in this Sunday’s Lifestyle.