Midwest Project On Hold Over Financial Crisis

Midwest Project On Hold Over Financial Crisis

Tuesday, November 25, 2008 at 16:06

 

 

The partners in the Midwest uranium project in northern Saskatchewan have decided that its development will be “postponed” due to current economic conditions.

 

Denison Mines Corporation, which holds a 25 per cent share in the Midwest project, says the move is also a result of delays and uncertainties associated with the regulatory approval process, increasing capital and operating costs and the current market for uranium.

 

According to Denison, capital costs are now estimated to have increased by approximately 50 per cent from the previous estimate of $435 million.

 

The Midwest partners say they have decided to complete the environmental assessment for the project, and to complete the engineering for the Midwest site — enabling the project to be developed quickly once conditions improve.

 

Denison says the status of the project will be reviewed every six months.

 

Operations at Midwest were scheduled to begin in mid-2011, employing about 150 people.

 

The project involves draining part of South McMahon Lake to construct an open pit mine about 45 hectares in size. The ore would then be trucked along a haul road to the McClean Lake mill for processing.

 

AREVA is the majority owner of the Midwest project, with a 69 per cent stake.