Extract allays fears on Rssing South uranium by Desie Heita
29 June 2010
WINDHOEK Developers of Rssing South uranium mine have refuted speculations of uncertainty due to Namibia's signing of a multi-billion-dollar uranium investment deal with Russia.
The announcement comes at a time when Extract is preparing to submit a formal application for the mining licence by the end of this year.
Addressing shareholders at an annual general meeting last week, Extract's chairman, Stephen Galloway, said dialogue between Extract and the Namibian Government on the development of the mine continues without apprehension from either side.
"I should add that in spite of recent media speculation, I can confirm that dialogue between the Namibian Government, Namibian stakeholders and Extract Resources, remains open and positive," said Galloway.
Namibia signed an N$8-billion deal with Russia's State Atomic Energy Corporation (Rosatom) during President Hifikepunye Pohamba's visit to Moscow early this month.
It was also during this visit that a memorandum of agreement was signed involving intergovernmental agreements on peaceful nuclear energy and the possibility of Rosatom developing Rssing South uranium mine.
The agreements surprised many, especially since Extract is the majority shareholder of Rssing South uranium, with the Namibian Government having only expressed interest of becoming a minority shareholder.
Galloway said shareholders are committed to have Extract as the sole developer of the Rssing South uranium project, but this does not rule out the possibility of bringing in new partners.
"We continue to [] assess potential partnership opportunities that could deliver additional value to the development process. As part of this process, Extract remains in confidential discussions with potential partners. These discussions are ongoing," said Galloway.
Current estimates are that the mine would produce about 6 800 tonnes (about 15 million pounds) of uranium oxide per year, which Galloway said, puts Extract in a unique and privileged position, as the mine would be one of the largest stand-alone mines in the world.
Work is already on schedule to complete an environmental impact assessment and management plan, in parallel with preparations for the mining licence application.
"Together with the definitive feasibility study, the outcomes from this work will be used to support a mining licence application over Rssing South before the end of 2010. This is an extremely positive position for the company and underpins the hard work by the management team to achieve our objectives," said Galloway.
The company has already put in place an executive team, led by Norman Green, the person who brought Skorpion Zinc Mine on stream.
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