It is reported that Canada’s Denison Mine Limited, which seeks to commence production in Zambia by 2012, said that it plans to start mining uranium in the Southern African nation once the uranium prices on the London Metal Exchange improve.

Mr Andrew Goode Denison Mines project director for Africa said that the mine was likely to start its first production of uranium in 2012 when it anticipated a recovery in the prices of the commodity. Currently uranium price is at USD 105.82 per kilogram on the international market.

Capital expenditures for the project are estimated to be more than USD 100 million with the yearly operating costs reaching USD 40 million in the Kariba area.

Mr Goode said that the project of mining uranium had chiefly been delayed by the continued low prices of uranium on the market. We are going to start production when the economics is right because if we start now we will be producing at a loss as we have invested a lot of money on this project.

Dension has projected to employ 430 personnel and at full production, Mutanga open pit in Southern Zambia near the border with Zimbabwe, should produce an estimated 1.5 million pounds of uranium per year. The mine had been exploring for uranium ore from Mutanga and Dibwe open pits for 5 years.

The Zambian government, through the Ministry of Mines and Minerals Development has granted Denison Mine two large-scale mining licences for uranium. The company has three operating mines and two uranium mills in North America with assets in Canada, United States, Zambia and Mongolia.

The mine had challenges of educating the people on the management system of uranium and making them understand that the firm would not be mining uranium bomb but uranium oxide.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)