Tanzania eyes $400 mln uranium mine in 3 yrs

Fri Jul 1, 2011 2:28pm GMT

* Govt targets $250 mln annual turnover from mine

* Australian firm to build project in game reserve

By Fumbuka Ng'wanakilala

DAR ES SALAAM, July 1 (Reuters) - Australian-based miner, Mantra Resources plans to build a $400 million uranium mine in Tanzania within the next three years, a cabinet minister in the east African country said on Friday.

The government will allocate 34,532 hectares of land inside a world heritage game reserve to the Australian uranium miner for the project, Tanzania's Natural Resources and Tourism Minister Ezekiel Maige said.

Tanzania has at least 54 million pounds of uranium oxide deposits and expects to start mining some of the minerals.

"Mantra Tanzania Limited, an affiliate of Mantra Resources of Australia, plans to construct the uranium mine in the Selous Game Reserve," he told Reuters.

The project will have an annual gross turnover averaging $250 million for 15 years, he said.   Continued...

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