Australian Mulga Rock uranium mine gains environmental approval

Australian Mulga Rock uranium mine gains environmental approval

The Australian government has granted environmental approval to Vimy Resources (ASX:VMY) for the construction of its Mulga Rock uranium mine in Western Australia.

Australia’s minister of environment and energy Josh Frydenberg approved the project subject to meeting stringent conditions laid out by the Environmental Protection Agency (EPA).

Following the governmental green light, Perth-based Vimy swiftly began initial construction work at the site located 240 km Northeast of Kalgoorlie, in the Great Victoria Desert.

According to a 2015 prefeasibility study, the mine will produce 1,360 tonnes of uranium oxide per annum, making it the third largest undeveloped uranium deposit in Australia.

76.8 million pounds of indicated and inferred uranium are thought to be present throughout four deposits, which will be extracted over a mine life of 17 years.

Other minerals expected to be extracted at Mulga Rock include cobalt, copper, nickel and zinc.

Vimy’s managing director and CEO, Mike Young, said: “The commencement of this work shows the commitment of Vimy to developing the Mulga Rock Project.

“The uranium market is heading towards supply deficit and we expect to move to production as the market continues to improve.”

@RGNonline