The Afrikander Lease (Aflease) announced on Monday that it has signed a memorandum of understanding (MOU) with UK-based Nufcor International Limited to market and distribute its U308 uranium globally.
The move is part of Aflease’s strategy to realise value in its world-class uranium source and follows an announcement by the mining company on November 15 that it had approved R21-million to complete a feasibility study on the first phase of a project to mine the group’s uranium resource. This phase is expected to be completed in June 2005.
In terms of the MOU, Nufcor, which is equally owned by AngloGold Ashanti Limited and Rand Merchant Bank, a division of First Rand Bank Limited, will now be the exclusive global marketer and distributor of Aflease’s U308 uranium oxide concentrates.
Aflease has also secured the services of Turgis-Ukhozi Consulting Engineers, an international mine design company, to design and plan the mining of the resource. Aflease has also appointed Bateman Africa to design and manage the process engineering aspects of the project.
Commenting on the developments, Neal Froneman, CEO of Aflease, said: “We have made good progress in our strategy of creating a focused uranium company. Bedding down quality partners to assess and design the mining of
our uranium resource as well as to facilitate marketing and distribution, is an important step forward in maximising the value of our uranium resource.”
The new mine is expected to be commissioned by the end of 2006 and will be designed to achieve an annual output of four million pounds over a 30-year life.
Annual gold production will be approximately 90 000 ounces and will be an important by-product ensuring the mines competitiveness in the international arena. – I-Net Bridge