Letlhakane uranium mine project deferred
Brian Benza | Wednesday October 4, 2017 18:00
Construction of the mine was expected to start in 2018 after A-Cap Resources was awarded a 22-year mining licence in September 2016.
In a statement, the Botswana Stock Exchange (BSE) listed company said the deferment has been triggered not only by the delayed recovery in uranium prices but also the implementation of a project to improve mineral recovery at Letlhakane.
“A letter was submitted to the department of mines to advise that the preconstruction and construction period would be delayed by two years. The company has since received correspondence formally advising that the amendment to the programme of works for the mining licence has been approved,” said the company.
A holder of a mining licence is required by law to apply to the minister if they wish to make amendments to the approved programme of mining operations.
According to the latest World Nuclear Association biennial report, global nuclear capacity will grow dramatically in the coming years, but stockpiled uranium will mean it will take some time for new uranium to be required.
World uranium production rose to 62,221tU in 2016, and according to the report, known global resources of uranium are more than adequate to satisfy reactor requirements to well beyond 2035.
In 2015, A-Cap announced that the Letlhakane Uranium Project has a capital expenditure of $351 million (P3.7 billion). Botswana is estimated to hold around 1.04 billion tonnes in uranium reserves, in the central part of the country, and the government has issued prospecting licences in the last decade although no production has taken place.
The exploration firm said results of technical studies showed the project would produce up to 3.75 million pounds of the ore in the first five years of its projected 18-year life.
The project was ideally located near roads; a railway network and power supply, the company said in a statement, and was also on the site of one of the largest uranium deposits in Africa, with estimated deposits of 261 million pounds.
The company initially came to Botswana for copper-nickel exploration, but went into uranium prospecting when prices for the metal improved. Falconbird of Japan previously owned its current project in the 1970s and 1980s.
Interest in uranium as a source of energy has risen partly because nuclear plants are environmentally friendly as they emit a tiny fraction of carbon dioxide that causes global warming.
Global uranium production had stalled recently due to depressed prices, curtailing exploration activities and the opening of new mines. Minerals that are currently being mined in Botswana include coal, copper, nickel and silver.