Reuters cited Mr Maxwell Mwale mines minister of Zambia as saying that Toronto listed Denison Mines Corporation will launch a USD 118 million uranium mining project in Zambia in 2010.

Mr Mwale said that Denison had submitted technical details of the project to the state run Environmental Council of Zambia for approval of mining rights.

He said that "Since they have done the required environmental impact assessment report and applied for mining rights we should be granting them a mining licence. The project site, south of the capital Lusaka was in an area where exploration by several foreign firms had confirmed good uranium deposits. Under Zambian law, mining firms must first seek the approval of the ECZ before they can start production.

Mr Mwale said that "There are a number of nuclear power plants being erected in India and China and we expect that the price of uranium will rise."

As per report, Denison intends to mine 18.8 tonnes of uranium ore from the Mutanga and Dibwe open pits and subsequently process the ore into uranium oxide concentrate.

Denison said that the capital investment of the project is estimated to be USD 118 million. The annual operating costs of the mine will be about USD 38 million. The company said that final design works and construction of the mine would commence in 2010.

(Sourced from Reuters)