Boss Resources says a feasibility study has made the case for the reopening of the Honeymoon uranium mine in South Australia just as soon as the uranium price recovers.
Reopening the mine 80km northwest of Broken Hill, NSW, will cost around $US63.2 million ($A92.9 million) and take about 12 months until first production, Boss says.
Honeymoon operated from 2011 to 2013 and Boss bought it in 2015 from Uranium One for $9 million.
The small team at ASX-listed Boss has been working to de-risk the project, chief executive Duncan Craib said.
“This just confirms we’ll be Australia’s next uranium producer,” he said.
“We’ve worked hard to achieve this milestone. It’s something to be proud of.”
The study predicts an average-all in cost for producing uranium of $US32.3 a pound, which would make Honeymoon one of the lowest-cost producers worldwide, Boss said.
Uranium spot pricing has been around $US25 a pound, with uranium being produced as part of long-term supply agreements likely around $US35, but there’s no way the price of the commodity can stay so low for long, Mr Craib said.
Boss will hire about 80 to 100 people for the mine, he said. The plan is for a 12-year life-of-mine.
It would produce uranium for export via Adelaide for use in nuclear reactors in Canada, France and the United States.
Boss already has $US65 million ($A95m) in debt financing from Tribeca Investment Partners to fund the project, Mr Craib said.
There are currently three uranium mines in production in Australia, according to the World Nuclear Association: the Ranger mine in NT, which is processing stockpiled ore; BHP’s Olympic Dam mine in SA; and the Beverley mine, also in SA.