GoviEx Uranium Company says its Muntanga Uranium Project in Zambia is progressing as planned and the Company will publish the feasibility study in the second half of 2024.
With an anticipated annual production capacity of 2.5 million pounds of U3O8, the project is expected to be a significant contributor to the global uranium market. According to GoviEx production will be marketed to utilities, off-takers, and potentially the spot market.
Speaking in an interview with the Zambian Business Times – ZBT, GoviEx Uranium Inc. Head of Investor Relations and Corporate Communications, Isabel Vilela, said the company is on schedule to publish the Feasibility Study in the second half of this year, as anticipated.
Vilela said the Muntanga Uranium Project is a cornerstone of GoviEx’s strategy to become a major uranium supplier, alongside its Madaouela project in Niger.
She said GoviEx has also taken steps to ensure the safety of workers and the local community during the mining process.
She said the bullish market outlook for uranium prices in 2023 further bolsters GoviEx’s enthusiasm for the Muntanga project. “Uranium prices have shown remarkable performance, being the best-performing commodity in 2023. This positive market outlook and its implications for GoviEx’s success make the Muntanga project a highly promising venture.”
Asked about the projected timelines for the completion of the project and the start of production, Vilela said, “with the Feasibility Study on the horizon, we will gear up for debt finance planning in 2025, followed by a two-year construction phase. It’s a bit early to set these dates in stone, but that’s the roadmap we’re working with for now.”
“We anticipate an annual production capacity of 2.5 million pounds of U3O8 (this is called yellowcake and it’s one of the forms in which uranium is traded on the market) per year, although this will have to be confirmed in the Feasibility Study. Our production will be marketed to utilities, off-takers, and potentially the spot market. Specific strategies remain adaptable to best serve the project’s interests.”
Asked about the measures being taken to ensure the safety of workers and the local community during the mining process, Vilela said “Our company not only adheres to Zambian health and safety standards but follows best practice international standards, having robust health and safety policies in place.We have a solid stakeholder engagement plan and are committed to community welfare and development through substantial initiatives, including the construction of schools and health clinics in the project area. We are also promoting local employment through our Back to School Project where we partnered up with the District Education Board Secretaries (DEBS) for the Siavonga and Chirundu Districts to fund an adult education plan, aiming to bring adults back to school so they can potentially work in the project, once they reach grade four and the project is up and running. At the moment we have nearly 500 students enrolled in this project. We also have a junior trainee program and are funding the tuition, boarding, and upkeep of an initial six students from three communities in the areas around the Muntanga Project.”
asked about the role does the Zambian government play in the project, and what is their level of support for the project, Vilela said, “they are fully supportive of the project and their backing is invaluable to our project’s success. We maintain a continued and fulsome communication with many levels of the Zambian Government.”
“As with any new venture, we face certain risks that could impact our timelines. These can vary from the supply chain, labor, environment, etc but our approach to mitigating these risks is proactive and focused on minimizing delays and other potential challenges.”
“Uranium prices have shown remarkable performance, being the best-performing commodity in 2023. This bullish trend bolsters our enthusiasm for the Muntanga project, and we remain optimistic about the positive market outlook and its implications for our success.” She added.
