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Brinkley - Production at Shinkolobwe by 2010

http://africa.reuters.com/business/news/usnBAN023228.html

DRC signs Brinkley deal to halt uranium smuggling
Fri 20 Jul 2007, 5:27 GMT
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By Anna Stablum

LONDON (Reuters) - The Democratic Republic of Congo has signed a deal with London-listed firm Brinkley Mining to produce uranium legally and get financial assistance to curb uranium smuggling, a senior official said on Thursday.

The deal, signed on July 11, establishes a joint venture between Brinkley and the DRC's General Commission for Atomic Energy (CGEA) to develop the country's uranium sector.

"Internationally everybody is talking about smuggling radioactive material and this creates a bad image ... we are going to improve that image of the country," said Francois Lubala Toto, General Commissioner of the CGEA.

The DRC's uranium mines produced material for the nuclear bombs used in World War II, but since 2000 the uranium mines have been closed as the country has been suffering from years of war and misrule.

With uranium prices rising from $7 per pound in 2000 to hit a record of $135 in June, the interest in uranium has rocketed and several African countries are trying to exploit its uranium industry.

In neighbouring Uganda, uranium was first found three years ago and the government has said commercial quantities could be discovered soon. In Niger, the government has granted 60 uranium exploration permits to 20 foreign firms.

Despite the shutdown of uranium mines in the DRC, illegal mining has continued and minimal oversight of the reserves has fuelled allegations that uranium has been smuggled to Iran, but the government has denied these allegations.

The accusations have put pressure on the government.

By signing a joint venture last week with uranium explorer Brinkley Mining, the DRC will get financial and technical assistance to curb the illegal exports, Lubala Toto told Reuters during Brinkley Mining's investor presentation.

"The urgency (of the deal) is because of the smuggling of radioactive products," he said.

The joint venture, under Lubala Toto as chairman, will explore for and exploit deposits in initially five key areas.

The share capital, of an initial amount of $3 million, will be held 75 percent by Brinkley and the rest by CGEA.

"We have agreed to provide technical and financial assistance to the CGEA to assist them to control radioactive material," Brinkley's chairman Gerard Holden said.

With financial assistance from Brinkley, all the exports of copper and cobalt will be tested and if the material exceeds 200 parts per million uranium it will be stopped, Lubala Toto said.

Record-high uranium prices reflect strong demand from nuclear reactors given high oil prices and the global effort to clamp down on carbon dioxide emissions, blamed for climate change.

"We believe there is going to be a peak in 2010-2012 where there is a significant requirement of the demand gap to be filled and that is very positive," Holden said, adding they aim to start production at the mine Shinkolobwe by 2010.

"We use prices in our forecasts of around $50-60 ... it is an appropriate medium-term price," Holden added.

Africa was the leading uranium producer thirty years ago and currently it accounts for around 20 percent of global output, after top producer Australia