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Uranium One cuts 2008 output 37% Posted: Wed, 31 Oct 2007 [miningmx.com] -- URANIUM One, the Toronto-listed uranium producer, confirmed it would cut its 2008 production forecast by up to 37% owing to commissioning problems at its operations in South Africa and Kazakhstan. "This is a worse case scenario," said Neal Froneman, president and CEO of Uranium One. "There are a number of solutions we're working towards, principally to improve the acid supply which is the major issue." Uranium One shed 7.8% in early trade in Johannesburg and was last trading at R80.86/share. The announcement of lower than expected production was made after the markets closed in Toronto on October 30. Uranium One said in its statement it would produce about 2.1 million pounds of uranium this year down from a previous forecast of 2.5 million pounds owing to delays in commissioning equipment at Dominion Reefs in South Africa. "We're slightly behind on the commissioning but the second autoclave will be installed in December," said Froneman. "By 2009, the mine will be back on track and will exceed our expectations in the longer term owing to the expansion," Froneman said. Production in 2008 was expected to be 4.6 million pounds, down from 7.4 million pounds. This was owing to a shortage of sulphuric acid that is expected to delay the ramp-up of Uranium One's South Inkai and Kharasan mines in Kazakhstan. "The company is seeking longer-term solutions to the sulphuric acid constraint," said Uranium One in its statement. The acid shortage is due to delays in completion of a local Kazakhstan copper smelter. One solution was to build a 500,000 tonne/year acid plant for use by regional producers in Kazakhstan. The plant would cost $100m of which Uranium One would contribute $19m, Froneman said. Froneman said the Kazak government was the operator of the mine but the acid shortage was a "world wide phenomenon related to the commodity boom". The delays in ramping up the mines would not materially affect operating costs or capital expenditures. Click Here to subscribe to our daily newsletter
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