Extract's Namibia uranium mine build seen in 2012

Wed Oct 27, 2010 1:25pm GMT
 

WINDHOEK (Reuters) - Australian uranium explorer Extract Resources' Namibian subsidiary Swakop Uranium plans to start building a new mine in 2012 with production expected two years later, a report showed on Wednesday.

The company said in an environmental impact assessment report presented for scrutiny to the government that it planned to mine for uranium up until around 2028.

It said the Husab mine project would have a throughput of 15 million tonnes per annum to produce 8,000 tonnes of uranium yellow cake with 70 percent contained uranium.

The cost of developing the reserve are estimated to be over $700 million, Swakop Uranium said.

"The final feasibility study will be completed before the end of this year. It will include many variables and recommendations," the company's spokesman Tom Ferreira said, adding that shareholders will decide on what route to take.

The mine is expected to be the second largest uranium operation in the world and it will create economic benefits for the country, but also have significant negative social and environmental impact, the report showed.

"Ultimately, the decision makers will be required to prioritise either the positive economic impacts or the negative environmental and social impacts," the report added.

Extract said it expects 4,000 people to be employed during construction, with 1,200 permanent jobs to be retained when the project comes on stream.

<p>Uranium pellets, a nuclear fuel product for atomic power plants, are seen on a production line at Ulba Metallurgical Plant in Kazakhstan's eastern town of Ust-Kamenogorsk in this August 11, 2006 file photo. REUTERS/Shamil Zhumatov</p>

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