DOW JONES NEWSWIRES
The Zambian government will start issuing uranium mining licenses effective June, a government official at the Ministry of Mines and Minerals Development told Dow Jones Newswires Monday.
According to the official, this follows approval of the country's legal framework to guide uranium mining activities by the International Atomic Energy Agency.
"We have been cleared to license uranium mining and we shall start issuing mining licenses in June," he said by telephone from Lusaka, the Zambian capital.
Zambia has been waiting for the approval of the IAEA before clearing uranium mining, global demand for which continues to soar, propelled mainly by resource-hungry China and India.
Toronto listed Equinox Minerals Ltd. (EQN.T) and Australia-based Albidon Ltd. (ALB.AU) have discovered commercial uranium reserves at their respective properties in Zambia. Despite this progress, Zambia hadn't cleared either of them to start mining.
Last year, Kalombo Mwansa, Zambia's minister of mines and minerals development told Dow Jones Newswires that because of the sensitive nature of the metal, the government was treating uranium mining with caution. Companies which have discovered uranium currently only hold exploration licenses and aren't allowed to mine it.
According to an official with Equinox Minerals, uranium and copper ores are embedded in the same rocks at the Lumwana Copper Mine, which starts copper output in the middle of this year.
According to company information, Equinox is finalizing the Lumwana uranium feasibility study and plans to start uranium output in 2010. Company data indicates Lumwana hosts a probable uranium resource containing around 22 million pounds of uranium concentrates.
-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256 75 262 4615; [email protected]
(END) Dow Jones Newswires
04-21-08 1017ET
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