1.0 million tonnes of high grade uranium...

Zambia's Lumwana plans 1.0 mln tonnes uranium output
Tue 14 Oct 2008, 12:31 GMT

[-] Text [+] By Shapi Shacinda

LUSAKA (Reuters) - Zambia's Lumwana Mining Company (LMC) plans to produce 1.0 million tonnes of high-grade uranium at full tilt once full operations start, company data showed on Tuesday.

LMC, a unit of Australia's Equinox Minerals Ltd., said it plans to start "detailed design and construction" of its uranium project in the last quarter of 2008.

An environmental impact assessment report meant for the Environmental Council of Zambia (ECZ) seen by Reuters showed that production would initially come in at 784,000 tonnes per year in the first year of uranium output before rising to 1 million from the second year.

It is projected that uranium output will last nine years.

The LCM said it had conducted a $6 million uranium feasibility study at the Lumwana mine, and results showed the existence of high grade uranium.

Stockpiling of uranium ores has already started at the mine, the company said.

"By the time production commences, it is expected that approximately 65 percent of uranium ore will have been mined and stockpiled," the report said.

"Based on (the) current mining schedule, uranium ore will need to be stockpiled both prior to and during the operation of the uranium plant as the rate of mining exceeds the rate at which uranium (will be) processed," it added.

LCM said local firm AEL Zambia Ltd., which manufactures explosives, had erected a 36,000 tonnes/per year bulk emulsion manufacturing facility and also two magazines for explosives.

The LCM also plans to construct storage facilities with initial capacity of 500,000 tonnes, which would later rise to 9.0 million tonnes.

Uranium production is a satellite project for LCM, which plans to peak copper production at 165,000 tonnes at what will be Africa's largest open pit copper mine.

Zambia is currently Africa's largest copper producer but foreign firms including Zambezi Resources Ltd., African Eagle Resources Plc and Lithic Metals and Energy Ltd., have discovered huge uranium deposits in the mineral-rich southern African country.

Zambia said last week it had enacted a law for mining, storage and export of uranium which bars the diversion of the mineral for use in making nuclear weapons or devices.

The law, which covers the prospecting, mining and milling of uranium ores and other radioactive minerals ores, gives all powers in the mines minister to issue licences for mining and exports of uranium as a safeguard to ensure the mineral is exported to the right consumers.