The new uranium mine is located in the town of Retortillo and plans are to obtain its first production by the end of 2018. It is expected that when the project, launched by an Australian company, reaches the design production it will be able to meet approximately 10% of EU’s total uranium requirements.
EURATOM´s Supply Agency, the governing body guaranteeing the regular and equitable supply of nuclear fuel to EU users, has concluded that the off-take agreement for the sale of the uranium mine’s initial production is in accordance with Article 52 of the Euratom Treaty and has signed it as a third party.
In the opinion issued by Euratom, this organization «welcomes» the emergence and development of a new uranium mining project based in the European Union with «the conviction that it will help ensure the supply of natural uranium to EU users«, as claimed in a statement by Australian company Berkeley Energy.
The company has entered into a sale agreement that stipulates an average fixed selling price of USD 44 (40.740742 euros) per pound, which is favorable compared to the current spot price of USD 25 (23,148148 euros) per pound, and establishes a strong cash-margin higher than production costs once design output is reached, which is around USD 15 (13.888889) per pound.
A uranium mine for the European Union
The open-pit construction work has already begun and the first uranium production is expected to be completed by the end of 2018, «when a large number of European and US energy companies will be looking for new supplies and should compete with the demand of the new Chinese reactors, » Berkeley Energy believes.
«The aim of the company is to provide a clean and reliable base load power source from the heart of the European Union,» says the company, which states that when it achieves design output, the project will be able to meet approximately 10% of the continent’s total requirements.
Paul Atherley, CEO of the company, believes that «Salamanca will become an important player in the EU’s security of supply. By meeting 10% of its needs, it will reduce dependence on Russia, Kazakhstan and Niger currently responsible of 60% of the supply «.
An authorization process not lacking in piquancy
He adds that the uranium mine project has received the support of all stakeholders «not only from the European Union but also from the different levels of government and from the local job applications received «, he claims.
Atherley points out that «considering that around 25% of the permanent residents in the neighboring localities have applied to work for us, our investment is expected to reverse the depopulation suffered by the region and reduce not only its high levels of youth unemployment but also in all the other ages, which in turn will allow to keep the local schools open and to recover other services «.
Thus, he hopes that the uranium mine will provide jobs to more than 150 people by the middle of the year and that in the long term 450 permanent jobs will be established. In addition, they estimate that an additional 2,000 jobs could be generated.
In spite of this, as reported, by among others, El País in March and April 2016 and El Diario last February, the project’s authorization process appears not to be lacking in piquancy although yesterday regional newspapers such as Salamanca 24 Hours or The Chronicle of Salamanca simply reproduced the press release released yesterday by the company with the result of EURATOM´s opinion.
