Goviex sees uranium market strong enough for new mine in 2020

GoviEx Uranium

09/02/2017 10:24

* Spot prices still too low to justify new mines 
    * Chinese expansion driving demand 
 
    CAPE TOWN, Feb 9 (Reuters) - Uranium markets are showing 
signs of strength that should enable Canadian-listed producer 
Goviex  GXU.V  to bring its Madaouela mine in Niger onstream by 
2020, the company's CEO said on Thursday. 
    Spot prices of uranium, used to make fuel for nuclear power 
production, have been depressed since the 2011 Fukushima 
disaster led Japan to shut down its reactors and created high 
stockpiles globally.  urn:newsml:reuters.com:*:nL1N16G16S 
    Goviex CEO Daniel Major said prices are still around $30 
dollars per pound compared with the level of $50-to-$55 Goviex 
says it needs to build a mine. 
    But he said the fundamentals are stronger as China 
aggressively builds reactors and uranium markets start to face a 
supply shortage. 
    "The uranium market is permanently in operational production 
deficit. It survives by taking material out of stockpiles all 
the time. It doesn't take much to tighten it up," Major said on 
the sidelines of a conference in Cape Town. 
    Goviex operates in Africa, which Major says is a good 
environment for a uranium miner as licences are easily 
obtainable and the quality of the ore is good enough. 
    "It's not just about the grade in our industry and the key 
thing is you can get permits in Africa," Major said, adding that 
nations such as Niger, heavily reliant on resources income, were 
likely to facilitate operations. 
    In addition to Niger, Goviex has Mutanga in Zambia, which is 
expected to come onstream in 2023 and Falea in Mali which is due 
about three years after that, provided uranium prices are strong 
enough.     
 
 (Reporting by Barbara Lewis; editing by Jason Neely) 
 ((Barbara.hm.Lewis@thomsonreuters.com; +44 297 542 2932; 
Reuters Messaging: 
barbara.hm.lewis.thomsonreuters.com@reuters.net)) 
 
Keywords: AFRICA MINING/GOVIEX URANIUM