JOHANNESBURG (miningweekly.com) – Clean energy-focused Berkeley Energia has completed the financing for its Salamanca uranium project, in Spain, and is in the process of undertaking detailed final reviews to ensure the company has the most optimal capital and operating costs.
A final selection of contractors is also being finalised.
During the quarter ended March 31, the company made steady progress in bringing the project near the point where full construction can begin.
The main focus has been on carrying out a detailed project review, which is aimed at ensuring that the optimal capital and operating costs are achieved.
However, while the tone of the uranium market appears to be "cautiously more optimistic", Berkeley on Monday noted that production cuts continue to be announced at uranium mines across the world following the announcement of production cuts from Cameco and Kazatomprom.
The spot price of uranium, the company noted, currently sits at $21/lb.
However, against the backdrop of a weakening uranium price forcing production cuts, demand still continues to grow.
The Salamanca mine is scheduled to reach production as the market enters the long-awaited supply/demand deficit that industry experts have called both fundamental and unavoidable.
However, the project continues to receive strong support from key stakeholders in Spain, reflecting the growing awareness of the benefits the investment will bring to a community that is experiencing some of the highest levels of unemployment in the European Union, the company stated.