PERTH (miningweekly.com) − Exploration company Extract Resources said on Monday that it was in discussions with Rio Tinto regarding a potential combination of the Husab uranium project with the neighbouring Rossing mine, in Namibia.

The ASX- and TSX-listed uranium developer said that a combination of the two uranium mines could capture significant synergies.

Extract is developing a 15-million-pound a year uranium oxide operation at Husab, and has recently received environmental approval from the Namibian government.

Husab, near Swakopmund, is the world’s fifth-largest known primary uranium deposit.

Rio’s Rössing mine has been mining and processing uranium in Namibia for the past 34 years. It is the third-largest uranium mine in the world, and in 2009 mined 54,5-million tons of rock and produced 4 150 t of uranium oxide.

Extract also stated that it was also in discussions with major shareholder Kalahari Minerals to explore various methods to simplify the Extract/Kalahari shareholding structure.

“These discussions remain confidential and incomplete and there is no certainty that the parties will reach any agreement,” the company stated.

Kalahari holds a 41,08% interest in Extract through its Kalahari Uranium subsidiary.

Extract’s share price jumped more than 3% on Monday on the ASX to A$9,92 a share.

 

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