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Berkeley Energia’s Salamanca project well underway

Tuesday, October 11, 2016 0:57
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Berkeley Energia PLC (LON:BKY) said initial infrastructure development at its Salamanca uranium mine in Spain was underway, paving the way for the main build next year.

Work has begun on a 5.2km road deviation, the raw water dam and development of pedestrian footpaths.

Also, the installation of a Wifi network for the local villagers.

Berkeley highlighted the US$100mln project has the potential to be Europe’s only major uranium mine and one of the biggest producers in the world. It will provide over 450 new jobs and an estimated 2,700 indirect jobs.

It could supply more than 4mln pounds of uranium concentrate per year, or around 10% of Europe’s total requirement.

From 2018, the mine will supply customers in Europe, the US and Asia, many of whom are expanding their nuclear reactor fleets to meet 2030 carbon targets with 65 new reactors currently under construction worldwide.

Berkeley added that demand for uranium was expected to grow significantly from 2018 as US and EU utilities start re-contracting for supply and will be competing with China which is currently bringing on line seven new reactors a year and has just allocated a further US$570 billion to construct an additional 60 reactors over the next decade.

A definitive feasibility study released in July showed that over an initial ten-year period, Salamanca can produce an average of 4.4 million pounds per year at US$13.30 per pound and cash cost of US$15.06 per pound.

It is expected to generate an average annual net profit after tax of US$116 million.

The study placed a net present value (NPV) on the operation of US$531.9mln, and upfront capital costs to build the mine were slated at US$95.7mln.

Berkeley shares today added almost 2% to stand at 53.5p each.

Story by ProactiveInvestors


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