All data is delayed
See More

Areva puts brake on Namibia mine

Oct 11 2012 20:11
Windhoek - Energy giant Areva said Thursday it is suspending work at a new Namibian uranium mine currently under construction due to low uranium prices.

"Areva will postpone the launch of the Trekkopje mine until the project's economy improves," the Namibian office of Areva said in a statement.

The French company cited a decrease in uranium prices coupled with the scale of investments yet to be made on site as reasons for the move.

"In October 2011, the decline in uranium prices resulting from the nuclear accident at Fukushima in Japan forced a slowdown," a statement said.

The mine is situated in the Namib Desert, some 300 kilometres (190 miles) west of the capital Windhoek.

Construction work already underway will be completed by the end of December 2012, while existing installations will be put under a $10 million a year structured care and maintenance programme.

The objective is to "restart the project in the best possible conditions as soon as the overall market environment allows it," Areva said.

The decision could mean job losses, but the firm said it would offer accompanying measures" to affected workers.

"Areva is committed to stay in Namibia over the long term," it said.
areva  |  namibia


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The 25 basis points interest rate increase is:

Previous results · Suggest a vote