PERTH (miningweekly.com) - The Husab uranium project is a step closer to production as the Extract’s Namibian Mines and Energy Ministry advised owner Extract Resources that it was prepared to grant a mining licence.

Extract subsidiary Swakop Uranium has accepted the terms and conditions contained within the notice, meaning that the Mines Minister would now direct the Mining Commissioner to issue a licence.

“This marks the final step to achieving all of the permits that we need in order to begin the development of the Husab uranium project,” said Extract CEO and MD Jonathan Leslie.

He added that discussions with potential debt financiers of the project were well under way, adding that the company would continue to evaluate offtake arrangements and opportunities for investment by strategic partners.

Leslie also said that plans for delivery of access, power and water infrastructure were well advanced.

The Husab uranium mine, which was currently classified as the world’s fourth-largest uranium-only project, would come on line during the fourth quarter of 2014, producing some 15-million pounds of uranium oxide a year, over a 20-year life-of-mine.

Capital costs for the project were estimated at around $1.5-billion, including initial mine fleet, processing plant and supporting infrastructure.

Leslie said that the mine optimisation and resources extension (MORE) programme also continued to deliver results that increased the mine life through the definition of further reserves, and which optimise the design of the processing plant and the mining operations.

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