TORONTO (miningweekly.com) – TSX- and JSE-listed First Uranium hopes to finalise an agreement next month to supply uranium to South African government-owned power utility Eskom, CEO Gordon Miller said on Tuesday.

First Uranium owns the Ezulwini underground uranium and gold mine, and the Mine Waste Solutions tailings recovery operation, both in South Africa.

It has used a modular approach at both operations to start and then expand gold and uranium production over time.

Uranium production is now under way at Ezulwini and the first uranium module at MWS is scheduled for completion later this year.

Both operations are already producing gold.

The company has not entered into any firm supply contracts yet for its uranium, but recently signed a letter of intent to supply Eskom with uranium for the Koeberg nuclear power station, in South Africa's Western Cape province, beginning in 2011 and until 2017, Miller said.

The agreement will be structured to deliver a portion of the uranium order at the prevailing spot price and the remainder based on an escalated price.

First Uranium shares slid 3,09% on Tuesday, to C$3,14 apiece by 15:54 in Toronto.

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