Uranium producers positive
Namibia’s two uranium producers are confident that they can survive the current slump until uranium prices pick up again.
OGONE TLHAGE
Uranium producers Langer Heinrich and Rössing Uranium remain positive despite depressed uranium spot prices.
Sharing their views of what lies ahead for 2017, Langer Heinrich spokesperson Bernadette Bock and Rössing Uranium acting managing director Shaan van Schalkwyk both believe their respective mining operations can weather the storm.
On the issue of possible job cuts and continuing operations uninterrupted, Bock said: “We believe that we can sustain our mining curtailment operating strategy for at least the next year at prices around US$20 per pound and above.”
Sticking to price issues, she continued: “We do not like to speculate, but believe that the price of US$18-19 per pound is near the bottom of the market. We are hopeful that it will improve over the next year to at least US$25 per pound. In fact, we have already seen a slight upward trend over the past two weeks.”
Unlike Bock, Van Schalkwyk would not comment on the price level, instead saying: “Rössing Uranium is focused on being resilient in this tough economic climate by continuously improving our production efficiency, implementing various cash-generation projects and carefully reviewing spending money on capital and expense items.
“We believe these efforts will take us through 2017 and beyond, while we position ourselves to make full use of future opportunities presented by an eventual recovery in the market.”
Regarding the Husab mine reaching full production, Van Schalkwyk said: “Our market remains a global market and it would be inappropriate to consider the impact of the starting or closing of a single mine in isolation, without taking the entire supply demand fundamentals into account.
“Our views are therefore based on the best information we have regarding the global situation. As we approach year-end, it remains our number one priority to work safely while we focus on reaching our production targets.
“We do not foresee Husab’s production having much impact on Langer Heinrich Uranium (LHU) when it achieves full production, since LHU sells on the open market, whilst Husab’s product is targeted for internal consumption by China with only small quantities made available for sale on the open market.”
Uranium producers Langer Heinrich and Rössing Uranium remain positive despite depressed uranium spot prices.
Sharing their views of what lies ahead for 2017, Langer Heinrich spokesperson Bernadette Bock and Rössing Uranium acting managing director Shaan van Schalkwyk both believe their respective mining operations can weather the storm.
On the issue of possible job cuts and continuing operations uninterrupted, Bock said: “We believe that we can sustain our mining curtailment operating strategy for at least the next year at prices around US$20 per pound and above.”
Sticking to price issues, she continued: “We do not like to speculate, but believe that the price of US$18-19 per pound is near the bottom of the market. We are hopeful that it will improve over the next year to at least US$25 per pound. In fact, we have already seen a slight upward trend over the past two weeks.”
Unlike Bock, Van Schalkwyk would not comment on the price level, instead saying: “Rössing Uranium is focused on being resilient in this tough economic climate by continuously improving our production efficiency, implementing various cash-generation projects and carefully reviewing spending money on capital and expense items.
“We believe these efforts will take us through 2017 and beyond, while we position ourselves to make full use of future opportunities presented by an eventual recovery in the market.”
Regarding the Husab mine reaching full production, Van Schalkwyk said: “Our market remains a global market and it would be inappropriate to consider the impact of the starting or closing of a single mine in isolation, without taking the entire supply demand fundamentals into account.
“Our views are therefore based on the best information we have regarding the global situation. As we approach year-end, it remains our number one priority to work safely while we focus on reaching our production targets.
“We do not foresee Husab’s production having much impact on Langer Heinrich Uranium (LHU) when it achieves full production, since LHU sells on the open market, whilst Husab’s product is targeted for internal consumption by China with only small quantities made available for sale on the open market.”
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