Areva says it suspends C.Africa uranium mine project

2nd November 2011, Comments 0 comments

French nuclear giant Areva said on Wednesday it was suspending a mine project in the Central African Republic for "a year or two" because of a drop in uranium prices since the Fukushima disaster.

Work on developing the Bakouma mine, which is estimated to hold about 32,000 tonnes of uranium, has been suspended until the market value of the commodity rises again, an Areva spokesman told AFP.

A massive earthquake and tsunami in Japan on March 11 sparked an atomic emergency at the Fukushima Daiichi plant, leading some countries to cancel or put on hold their nuclear power programmes.

The price of uranium subsequently dropped by around 30 percent, at a time when Areva was hoping for a global nuclear power renaissance.

"We are convinced that the conditions of the uranium market will become propitious again in the next two years, once the impact of Fukushima has passed," Areva's vice-president in charge of mining, Sebastien de Montessus, said in a statement.

© 2011 AFP

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