Australian firm plans to open uranium mine in Zambia

An Australian mining firm is planning to open a uranium mine in Zambia's Southern province, Zambia News and Information Services reported Wednesday.

The Australian mining company has expressed interest in opening up a uranium mine in Siavonga with an investment of 60 million U.S. dollars.

Omega Corporation limited managing director Mattew Yates said uranium deposits have so far been detected in Muntanga and Dibwii areas of Siavonga.

He said the exploration project started in June this year and is expected to end in July next year. Two million dollars have so far been spent on the exploratory works.

Project manager David Dodd said Omega intends to start construct the uranium mine between July 2007 and October 2008 when the government issues a mining operating license which the company has already applied for.

"According to our plan, construction of the mine will start in July 2007 to October 2008 and between this period the company will create employment opportunities to at least 500 local people," said Dodd.

Dodd said that production of uranium from the mine is expected to start in October 2008 and end in 2015 after operating for a period of seven years.

He said the company projects to extract and export two million tons of uranium per annum and will also invest part of its revenue in improving infrastructure in the district such as roads, water and electricity for effective operation.

Mines and Minerals Permanent Secretary Leonard Nkhata said although the government appreciates the economic benefits of such a development to the national economy, there is need to consult widely and carefully on the actual implementation of the project.

Source: Xinhua