The Kayelekera Uranium Project (“Kayelekera” or the “Project”) in Malawi, Africa is the fourth largest uranium asset globally by historical annual production currently on care and maintenance. The Project produced ~11MIbs U3O8 equivalent over five-years between 2009-2014, before the asset was shutdown to preserve its longevity due to a sustained low uranium price.
The infrastructure at the Project is significant and includes a 1.5Mtpa processing facility, administration offices, an existing opencut mine, tailings dams, accommodation camp and other mine infrastructure that historically cost more than +US$200m. This existing infrastructure will allow for an accelerated re-start and one of the lowest initial capital cost estimates in the industry (US$50m plant refurbishment based on Re-Start Study).
The Project already has a mining licence and its environmental permits, access to a skilled local workforce who worked at the asset previously, as well as strong government support (who are also 15% owners of the Project).
The Company is currently advancing the project through a Definitive Feasibility Study that is anticipated to be completed by mid-2022 with a decision to recommence production expected thereafter providing a favorable uranium price environment.