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www.miningmx.com | energy Uranium One shuts the Dominion mine

Uranium One shuts the Dominion mine
Brendan Ryan 22 Oct 2008[miningmx.com] — URANIUM ONE has finally thrown in the towel on its troubled Dominion Mine near Klerksdorp and placed it on care and maintenance.The move follows a year of growing market speculation that the project was fatally flawed which was consistently denied by current CEO Jean Nortier and his predecessor Neal Froneman who resigned abruptly in February this year.Both Froneman and Nortier have at all times presented an overwhelmingly optimistic outlook on the future of Dominion despite repeated cuts in the mine’s forecast production profile over the past year.As of end-June the Dominion mine was valued in the company’s books at US$1.9bn compared with a total value for mineral interests, plant and equipment of $4.6bn………………………….. The failure of Dominion is one of South Africa’s biggest mining venture collapses………………………According to today’s statement Dominion has been closed following completion of a detailed life of mine planning process and budget “which has shown that the project would require a sustained recovery in uranium prices as well as significant additional capital investment in order to become economically viable.

www.miningmx.com | energy Uranium One shuts the Dominion mine

Tags: nuclear, antinuclear, rafioactive, uranium

October 28, 2008 - Posted by Christina Macpherson | business and costs