North American uranium output dips

Thursday, 14 August 2008

Figures show that uranium production in the USA and Canada has dropped during the first half of 2008.
 

The White Mesa mill (Image: Denison)

US uranium production in the first half of 2008 was 726 tonnes uranium, down 17% on the same period last year, according to the US Department of Energy's Energy Information Administration (EIA). Total 2007 US production was 1748 tU, which accounted for some 4% of total world production.
 

Production came from one mill - White Mesa in Utah – and five in-situ-leach (ISL) mines: Alta Mesa in Texas; Crow Butte in Nebraska; Kingsville Dome and Vasquez, both in Texas; and Smith Ranch-Highland in Wyoming.
 

Cameco said that its two US mines - Smith Ranch-Highland and Crow Butte - produced a combined 371 tU during the first six months of 2008, compared with 1044 tU for 2007 full year. The company expects Smith Ranch-Highland and Crow Butte mines to produce 615 tU and 270 tU, respectively, for the whole of 2008.
 

Denison Mines has cut its 2008 production forecast to 654-731 tU, down from its earlier prediction of 808-923 tU. The drop is due to a decrease in predicted output from the White Mesa mill in Utah, where output from the company's Colorado Plateau and Henry Mountains Complex mines is milled. Head grades at the Colorado mines - Sunday, Pandora, Topaz, West Sunday and Rim - at 0.18% U3O8, have been down on the 0.2% expected.
 

Denison now expects to produce 385-462 tU at the mill in 2008, down from earlier projections of 538-654 tU. In addition to its US output, Denison also produces uranium through its share in the McClean Lake/Midwest projects in Canada and has exploration interests in Mongolia and Australia as well as the advanced stage Mutanga project in Zambia.
 

In Canada, total production for the six months to 30 June was 4772 tU, compared with full 2007 total of 9477 tU, which was well below the norm to 2005. In 2007, Canada accounted for about 28% of world production.
 

Cameco said McArthur River mine produced 3518 tU, almost on target, while its Rabbit Lake operation produced 582 tU in the last quarter, having been shut down for repairs until April. Areva RC's McClean Lake mine improved its recent output to 672 tU, reflecting much higher ore grade treated.