Tuesday, August 5, 2014

Queensland Government's New Uranium Mining framework opens the state to Yellowcake Exploration

Published on Tuesday 5th August 2014 (AEST)  
Between 1958 and1963 a total of 4500 tonnes of uranium were produced. A world oversupply of uranium led to the mine lying idle from 1963. It was reopened in 1974 but closed again in 1976. It was finally closed down in 1982 and the following year everything in the town from the houses to the public buildings and the equipment was put up for auction.

A framework to guide the reintroduction of uranium mining in Queensland is expected to encourage uranium exploration, despite the resource's low price on the international market.
The Queensland Government's regulatory framework that will enable the development and operation of its uranium industry.

The action plan is one of the features of the government’s 30-year plan to develop the state.
Uranium hasn't been mined in Queensland since the closure of the Mary Kathleen mine in 1982. A ban was introduced seven years later.
 
Queensland Natural Resources and Mines Minister Andrew Cripps,says the framework takes into account all relevant issues across the uranium mining life cycle, such as strict environmental standards, transportation and safe handling. 

“Over the last 18 months, since the government announced that we would be removing the ban on uranium mining, we have been working very hard to develop a modern regulatory framework for the development of this industry,” Mr Cripps said.

The framework provides mining companies with a blueprint for their planning if they choose to propose a new uranium mine.

Mr Cripps says it is unlikely mining companies would seek to develop a mine any time soon, as the global uranium price is very low and it will not be commercially viable until the market recovers.

“Any applications that do come forward will be driven by the commercial realities of the day,” he said.
“The whole purpose of having (this) framework in place is that, when there are commercial opportunities that present themselves, Queensland is in a position to take advantage of those opportunities.”
Mr Cripps expects companies will be ready to start exploration and other preparations ahead of any improvements to the market.

Georgetown resident Noeline Ikin sat on the Uranium Mining Implementation Committee, which collaborated with the State Government to create the new framework.

She says her view of uranium mining improved during the process. She also said there would be strong employment opportunities  “There would be two or three of four years of construction (of a new facility) that local people are able to engage in and benefit,” she said.

“Then when the mine starts operating... there will be 400-500 employees for an average mine.”
Townsville deputy mayor Vern Veitch, a critic of uranium mining, says the new framework does nothing to ease concerns about the safety of reintroducing the industry.

“There is very strong concern in Townsville about the possibility of a mine reopening just over the Herveys Range ridge at Ben Lomond (mine site).

"The reason for that is that the Burdekin River is the back-up water supply for the Townsville community.
“We simply cannot take the risk that this water could be contaminated with radiation poisoning from a severe storm, heavy rain that would see tailings go into the Burdekin River,” Mr Veitch said.

Applications for uranium mining projects will be lodged with the Coordinator-General for assessment and a Uranium Mining Oversight Committee has been established.



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Wednesday, June 25, 2014

GoviEx Uranium (CSE: GXU) New TSX Listing

Published on Wednesday 25th June 2014 (AEST)

The Company's principal objective is to become a significant uranium producer through the continued exploration and development of its Madaouela Project and its other uranium properties, in Niger.
 
The Company's principal asset is an advanced-stage exploration property located in close proximity to the Somair and Cominak mines in the Agadez region of north central Niger in the heart of a historically prolific uranium-producing district (the "Madaouela Project"). 


The Madaouela Project consists of the Company's ownership interest in seven brownfields exploration permits known as Madaouela I, II, III, IV, Agal, Era and Anou Mellé.



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Saturday, June 21, 2014

Nuclear Boom Overwhelms China Watchdog

Published on Saturday 21st June 2014 (AEST)

June 20 (Bloomberg) -- China is moving quickly to become the first country to operate the world’s most powerful atomic reactor even as France’s nuclear regulator says communication and cooperation on safety measures with its Chinese counterparts are lacking. Zeb Eckert reports on "First Up." (Source: Bloomberg)

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Thursday, May 15, 2014

Alexander Molyneux Speaks On Record Uranium Demand Expected for 2016

Published on Thursday May 15 2014 (AEST)  

 Alexander Molyneux, chairman at Azarga Resources Ltd., talks about the company's agreement to merge with Powertech Uranium Corp. and the outlook for the uranium mining industry.


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Tuesday, May 13, 2014

Design/Build for Lance In-Situ Uranium Extraction Project

Published on Tuesday May 13 2014 (AEST)  

The last year construction began on a nuclear power plant in the United States was 1977, but that is about to change. 

The Department of Energy announced in February that it is backing the construction of two new nuclear power plants, and TREC, a Woodard & Curran company, is working on a major uranium mining project to provide the fuel that these and other plants will need. After four years, the Nuclear Regulatory Commission (NRC) recently gave initial permitting approval and released the final environmental impact statement for the first phase of the project where TREC will play a leading role.

Strata’s Lance In-Situ Uranium Recovery Projects in northeastern Wyoming encompass at least 190 combined miles of uranium mineralization and more than 53 million pounds of triuranium octoxide compound. TREC is leading the pre-construction activities for the uranium processing plant under a design/build contract and providing conceptual designs, detailed engineering design support, procurement, and construction services.

“Designing the system is an exciting challenge for our team,” said Brian Pile, a Regional Operations Manager at TREC. “This project is made even more significant because it will be such an important source of fuel for clean, low-carbon energy production in the future. We are committed to the efficient design of a low-impact system that protects the local ecology and creates long-term benefits for both Strata Energy and the local economy.”

The TREC team completed each component of the facility design, including mass balance, piping and instrumentation diagrams, and process layouts, as well as structural and instrumentation and control engineering. TREC also managed the laboratory, plumbing, HVAC and architectural design work for the facilities and generated specifications for the building, construction, equipment, pumps, tanks, and process, mechanical, structural, and electrical controls. Woodard & Curran is assisting TREC with the electrical and instrumentation and controls aspects of the project.
Prior to construction, TREC developed performance specifications that were provided to vendors for pricing and associated structural, safety, and ventilation designs, which were then incorporated into the facility design. This approach significantly reduced design costs and will expedite the building process.



Production at the Lance Projects

The Ross Production Site, the first phase of the Lance Project, is the area where Strata is currently focusing development and will use in-situ recovery (ISR) to extract the uranium, rather than an open pit or underground mine. ISR at the Ross project involves a number of injection wells that pump a solution of groundwater mixed with oxygen and sodium bicarbonate (lixiviant) into the sandstone that holds the uranium. The lixiviant oxidizes and dissolves the uranium, which is then drawn up by recovery wells. The solution is pumped to a central processing plant, where the uranium is extracted through an ion-exchange circuit, elution, precipitation processes, and drying for an initial annual production rate of 1.2 million pounds of “yellowcake” by 2017. The water used to bring the dissolved uranium to the processing plant is then re-fortified and returned to the aquifer in the closed loop process.

The entire wellfield is surrounded by a series of perimeter monitoring wells to guard against the migration of mining solution outside of the recovery area. ISR requires minimal surface disturbance, and the affected area—including the groundwater—is restored when the mining operation is concluded.

The Ross site will contribute a significant portion of the total United States production of uranium. According to the U.S. Energy Information Administration, 2013 domestic uranium production totaled roughly 4.8 million pounds. Strata is targeting 1.2 million pounds of triuranium octoxide produced at the Ross site per year through the years 2014 – 2017 and later plans to increase production to 2.3 million pounds per year.



Construction Underway
The uranium will be extracted through an ion-exchange circuit, elution, precipitation processes, and drying for an initial annual production rate of 1.2 Mlbs of “yellowcake” by 2017.








Construction Underway

Ground breaking commenced in October of 2013. Phase I construction has been completed to the point feasible during the winter months. TREC and Strata have begun procuring equipment and the pre-engineered steel buildings to allow for the rapid continuation of construction in the spring. Strata anticipates that the NRC will issue the Source Material License in early April 2014, which will allow the construction of the processing plant and initial wellfields.

“The design/build approach streamlines the process for Strata Energy,” Pile added. “The project benefits by having one contract and entity for design, construction, cost, and schedule management. It really is a true turn-key delivery for the owner, which provides them with the ability to focus on their core business.”

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Wednesday, May 7, 2014

Fortescues Andrew Forrest pumps $12m into Uranium Junior

Published on Wednesday May 7 2014 (AEST)  

Andrew Forrest’s investments continue to range far and wide, with the mining billionaire today investing millions into a uranium junior just days after he bought a beef exporting company.

Mr Forrest has today pumped $12 million into Energy and Minerals Australia as part of a broader $36 million funds injection for the company.

The investment is a reunion of sorts, with EMA run by two men with prior links to Mr Forrest via his main company Fortescue Metals Group; Julian Tapp and Mike Young.

Andrew Forrest, chairman of Fortescue Metals Group Ltd., speaks during the company's annual general meeting in Perth, Australia, on Wednesday, Nov. 13, 2013. Fortescue, the most indebted junk-rated mining company, is accelerating repayment of $2.04 billion in bonds to help cut debt and lower interest payments. Photographer: Aaron Bunch/Bloomberg *** Local Caption *** Andrew Forrest 
Mr Tapp was government relations advisor for Fortescue until 2012, while Mr Young led iron ore exporter BC Iron into a highly successful joint venture with Fortescue in 2009.


EMA is exploring acreage in the goldfields of WA which are prospective for uranium and base metals.

“My investment is a strong vote of confidence in the executive management team of Mike Young and Julian Tapp with whom I have had a long and successful working relationship,’’ said Mr Forrest in a statement.
Mr Forrest’s investment through his holding company ‘’Forrest Family Investments’’ will give him a stake of just over 27 per cent in EMA, and comes on the same day that Macquarie, Acorn Capital and Element Resources Fund agreed to covert their $24.5 million worth of debt into shares.

Mr Young said the investment would help unlock EMA’s future growth and potential.

It’s the second raising that EMA has completed so far in 2014, despite the deathly environment for uranium.
Mr Forrest’s investment comes just days after he bought WA food exporter Harvey Beef for an estimated $30 million.

But his stake in nickel junior Poseidon is shrinking, after the billionaire declined to participate in another equity raising by the nickel minnow.

Poseidon has today completed its second equity raising in the space of four months, and while the total raised this year – $7.5 million - may be small, it’s a big improvement on last year when the company couldn't raise money on several attempts.

Poseidon boss David Singleton said improved nickel prices were bringing investors back to nickel, and the company could have raised much more over the weekend had it not been prevented by an internal raising cap.
‘‘We were very heavily over-subscribed and we probably would have done more but we have bumped up against our annual raising capacity that we have permission for from shareholders,’’ he said.
‘‘It is unfortunate because having had a few bad years where it was quite hard to raise money, to get to the point where we were so heavily over-subscribed that we could have raised a lot more but to not have the capacity to do it is a little bit frustrating.’’

Nickel prices have improved by more than 25 per cent since January on the back of an export ban imposed by the world’s biggest nickel producer, Indonesia.

Mr Singleton confirmed that Mr Forrest had not participated in the equity raising.
Mr Forrest started 2014 with 33 per cent of Poseidon shares, but according to Bloomberg he now holds just over 27 per cent.

‘‘He will be slightly diluted as a result of today,’’ said Mr Singleton.
Poseidon must pay about $9 million in debts to Mr Forrest by October 1, and Mr Singleton said the company was considering asking shareholders for permission to raise more money, or possibly taking on new debt, to pay back Mr Forrest.

Poseidon is also reviewing quicker and cheaper ways to get its Windarra nickel prospect into production.
The company halted work last year as low nickel prices bit hard, but the improved climate could see preparatory work on site recommence soon.

‘‘The key next step for us is to recommence operations on the ground at Mt Windarra which we bought to a halt in June last year as the nickel market was going strongly against us. We are able to restart now and that will start to open up some other options,’’ said Mr Singleton.

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Tuesday, April 22, 2014

Paladin Energy Lifts 2014 Q1 Uranium Production

Published on Tuesday April 22 2014 (AEST)  

PALADIN Energy has reaffirmed its full-year production guidance after increasing uranium output in the three months to March. 

The miner produced 2.089 million pounds of uranium oxide across its Langer Heinrich and Kayelekera mines in the March quarter, up from 1.992 million pounds in the March 2013 quarter. Sales were 2.405 million pounds of uranium oxide in the quarter, up from 1.2 million pounds in the previous corresponding period. 

But revenue slipped to $US88.56 million ($94.81m), compared with $US106m in the prior corresponding period, as prices fell. 

Paladin reported an average sales price of $US36.82 per pound, down from an average price of $US55.22 per pound in the previous corresponding period. 



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