World uranium output up slightly in 1988

A number of offsetting factors accounted for the increased world output of 1.4 million lb, reports NUEXCO, a uranium exchange company headquartered in Denver, Colo.

In Australia, the opening of the Olympic Dam mine compensated for the depletion of stockpiles at Nabarlek; in South Africa, where three mines were closed, Vaal Reefs recorded a 12% boost in production; and, sales by the Soviet Union of enriched uranium product counter-balanced the loss felt by Brazil’s closing of its production facilities last year.

Canada was the world’s top producer of the mineral, for the fifth year in a row, turning out 32.4 million lb, up marginally from 1987. Canada accounts for about one- third of current world production.

NUEXCO points out that the Canada-U.S. free trade agreement will make for a unified North American market.

“Moreover, electricity exports from Canada into the northeastern U.S. may lead to closer ties in the nuclear generation sector. As these markets mature in the 1990s, the U.S. and Canada will be mostly free of barriers in the nuclear industry,” writes the company in its 1988 annual review. Large Saskatchewan output

Of Canada’s two uranium-producing provinces, Saskatchewan and Ontario, the former accounted for about two-thirds of the country’s 1988 uranium output.

Largest of the uranium operations in the prairie province is the Key Lake project, which turned out slightly more than 12 million lb last year, down 12.4% from the previous year. Operators of Key Lake are Canadian giant Cameco, with a 67% interest, and German-owned Uranerz Exploration and Mining, with a 33% interest.

Elsewhere in the province, production rose more than 21%, to 6.9 million lb, at Cameco’s renovated Rabbit Lake mill where ore from the Collins Lake deposit is processed. And at Cluff Lake, where French-controlled Amok Ltd. has an 80% interest and Cameco a 20% interest, output rose 4% to 2.24 million lb.

In Ontario, where uranium mining operations are centred at Elliot Lake, Denison Mines (TSE) turned out 5.1 million lb last year, up 7.5% from 1987, while the other producer, Rio Algom (TSE), saw its output decrease marginally to 6.1 million lb.

O the exploration side, NUEXCO says there are four projects in Saskatchewan which should all be in production by the end of the century: Cigar Lake and Dawn Lake, with Cameco being the majority shareholder in each; McClean Lake, in which Inco Ltd. (TSE) has a one-third interest; and Midwest, in which Denison is the largest shareholder. Cigar Lake deposit

Cigar Lake, NUEXCO says, could be in production by 1993. A $50-million test mining program is under way there and a 500-metre shaft is to be sunk late this year. Full production of 10-12 million lb per year could be reached by 1995.

At the Midwest project (formerly Midwest Lake), Denison is reported to have a $17.5 million underground exploration program ready to go. Full commercial production at Midwest — 3 million lb per year — could be attained by 1996, NUEXCO says.

In the Northwest Territories, a feasibility study is expected to be completed at the Kiggavik (Lone Gull) project of Urangesellschaft Canada, which is said to be in the market for a joint venture partner.

Among other uranium-producing nations, the United States ranked second to Canada in 1988 with output of 13.5 million lb, followed by South Africa with 9.9 million lb, Australia with 9.3 million lb, Namibia with 9.2 million lb and France with 8.9 million lb.

Three producers of uranium concentrates stand out in the world market: Cameco, Cogema of France and Britain’s RTZ, the parent company of Rio Algom.

The three will have a 1989 total net production interest of 37.7 million lb and will participate in the production of 64.4 million lb, equal to 65% of world output, NUEXCO reports. By the mid-1990s, it is anticipated the t rio will be participating in 68% of world production capability.

Cameco was created last year through a merger of Saskatchewan Mining Development Corp. and the federal agency Eldorado Nuclear Ltd. It is the world’s largest, low- cost producer of uranium.

Cogema, France’s largest producer of uranium, and RTZ have interests in uranium operations in a number of different countries.

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