Uranium junior Toro Energy has commenced offtake discussions with potential customers for uranium from its Wiluna uranium project planned to start production in 2013.
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Uranium junior Toro Energy has commenced offtake discussions with potential customers for uranium from its Wiluna uranium project planned to start production in 2013.
Uranium junior Toro Energy has commenced offtake discussions with potential customers for uranium from its Wiluna uranium project planned to start production in 2013.
The Adelaide-based miner, which acquired Wiluna through its $400 million merger with Nova Energy in 2007, today said it had commenced "the first round of talks" with energy utilities and other prospective uranium customers in Japan and the United States.
Talks with other potential buyers in Europe, Korea and China would "follow shortly".
Toro plans to submit a full environmental review and management plan for the $160 million mine, which is expected to produce up to 1200 tonnes of uranium oxide annually, later this year. It will be released for public comment in early 2011.
A trial pit is currently being excavated to extract 45,000 tonnes of ore to confirm mining and ground conditions at the Lake Way and Centipede deposits, 30 kilometres south of Wiluna.
While uranium prices have slumped in recent months to levels around $US41 per pound, Toro chairwoman Erica Smythe said the outlook for demand and prices remained strong, with the long term price expected to average around $US60 per pound.
Offtake contracts were based on long term prices, not spot levels, she said.
Toro's schedule puts it ahead of its rivals to develop WA's first uranium mine, with BHP Billiton's Yeelirrie, Mega Uranium's Lake Maitland, Energy and Minerals Australia's Mulga Rocks and Cameco's Kintyre project all in advanced stages of planning.
Rank | Company | Revenue | |
---|---|---|---|
215th | ![]() | Marvel Gold | $255k |
216th | ![]() | Toro Energy | $254k |
218th | ![]() | Paladin Energy | $243k |
219th | ![]() | Rumble Resources | $239k |