TIDMBKY
RNS Number : 1656M
Berkeley Energia Limited
11 October 2016
BERKELEY ENERGIA LIMITED
NEWS RELEASE | 11 October 2016 | AIM/ASX: BKY
Infrastructure development well underway at the Salamanca
Project
Europe's largest uranium supplier will rejuvenate the local
community
After a decade and US$60 million of investment Berkeley Energia
("Berkeley" or the "Company") commenced development of the
Salamanca project in Western Spain in August 2016.
The US$100 million project has the potential to be Europe's only
major uranium mine and one of the biggest producers in the world
once in production supplying over four million pounds of uranium
concentrate per annum, equivalent to approximately 10% of the
continent's total requirement.
The investment will help rejuvenate a local community severely
impacted by unemployment with over 450 new jobs, an estimated 2,700
indirect jobs and will inject new business opportunities into local
companies and suppliers, many of whom have been struggling due to
long term under investment in the area.
With shipments commencing in 2018 the mine will supply customers
in Europe, the US and Asia, many of whom are expanding their
nuclear reactor fleets to meet 2030 carbon targets with 65 new
reactors currently under construction worldwide.
Demand for uranium is expected to grow significantly from 2018
as US and EU utilities commence re-contracting for uranium supply
and will be competing with China which is currently bringing on
line seven new reactors a year and has just allocated a further
US$570 billion to construct an additional sixty reactors over the
next decade.
Infrastructure development progressing well
The infrastructure development is progressing well with the 5.2
kilometre road deviation, construction of the raw water dam,
development of pedestrian footpaths and secure cattle paths and the
installation of a Wifi network for the local villagers as part of
the Company's commitment to improve infrastructure for the local
community.
The contract for rerouting the main powerline has been awarded
to Iberdrola, the owner of the line, Berkeley's study partner for
the radiological aspects of the Salamanca project and one of the
leading players in the Spanish energy generation and distribution
market.
Material procurement has commenced and construction will
commence early next year following the completion of some of the
road access development. Construction of the road deviation will
take approximately three months.
This initial development is taking place on over 100 hectares of
land acquired from more than thirty local landowners.
The appointment of MDM Engineering, part of the Amec Foster
Wheeler Group, to carry out the Front End Engineering Design
("FEED") marks an important milestone for the Company.
The FEED is the execution phase of the project during which the
overall engineering and process design is translated into equipment
procurement packages and awards to specialist subcontractors.
Huge demand for jobs and training programmes
To date the Company has received 20,518 applications for the
first 200 jobs and has provided training for nearly 100 potential
employees.
The University of Salamanca has estimated that there will be
over five indirect jobs created for every direct job, creating a
potential of over 2,700 new jobs as a result of the investment.
An international expert has recently advised that the experience
in other developed economies is that over time the number of
indirect jobs created is generally even higher than this.
The policy of preferentially hiring and training local residents
has been very well received with the skills training programmes for
potential employees continuing to be heavily oversubscribed.
Commenting on the progress of the Salamanca Project, Paul
Atherley, Managing Director of Berkeley, stated:
"We are extremely pleased with the continued local support we
are receiving which is fantastic and in return we remain absolutely
committed to revitalising the local community, bringing much needed
jobs, training and new business activity to the area."
"After a decade of investment we are absolutely delighted to
start development of the initial infrastructure which paves the way
for the main construction early next year."
"As work on the ground progresses we move closer to our goal of
being one of the world's lowest cost uranium producers, reliably
supplying long term customers from the heart of the European
Union."
For further information please contact:
+44 20 7478
Berkeley Energia Limited 3900
Paul Atherley, Managing Director info@berkeleyenergia.com
Hugo Schumann, Corporate Manager
WH Ireland Limited (Nominated Adviser +44 20 7220
and Joint Broker) 1666
Paul Shackleton
Nick Prowting
Jay Ashfield
+44 20 7418
Peel Hunt LLP (Joint Broker) 8900
Matthew Armitt
Ross Allister
Chris Burrows
+44 207 466
Buchanan Communications Ltd 5000
Bobby Morse, Senior Partner BKY@buchanan.uk.com
Anna Michniewicz, Account Director
Further background:
Berkeley Energia's Salamanca project
Berkeley's objective is to be one of the world's lowest cost
producers reliably supplying the world's leading utilities with
fuel for base load clean energy from the heart of the European
Union.
An independent study published in July 2016 by MDM Engineering
(part of AMEC Foster Wheeler Group) reported that the project has
an NPV of over US$530 million and will produce 4.4 million pounds
of uranium per annum at a cash costs of US$15.39 per pound making
it one if the world's lowest cost and a top ten global producer of
uranium.
To see the full announcement, including all figures, please go
to www.berkeleyenergia.com/announcements
Further information is available on www.berkeleyenergia.com.
Competent Persons Statement
The information in this announcement that relates to the
Definitive Feasibility Study, Mineral Resources for Zona 7, Ore
Reserve Estimates, Mining, Uranium Preparation, Infrastructure,
Production Targets and Cost Estimation is extracted from the
announcement entitled 'Study confirms the Salamanca project as one
of the world's lowest cost uranium producers' dated 14 July 2016,
which is available to view on Berkeley's website at
www.berkeleyenergia.com.
Berkeley Energia Limited (Berkeley) confirms that: a) it is not
aware of any new information or data that materially affects the
information included in the original announcement; b) all material
assumptions and technical parameters underpinning the Mineral
Resources, Ore Reserve Estimate, Production Target, and related
forecast financial information derived from the Production Target
included in the original announcement continue to apply and have
not materially changed; and c) the form and context in which the
relevant Competent Persons' findings are presented in this
announcement have not been materially modified from the original
announcements.
The information in the original announcement that relates to the
Definitive Feasibility Study is based on, and fairly represents,
information compiled or reviewed by Mr. Jeffrey Peter Stevens, a
Competent Person who is a Member of The Southern African Institute
of Mining & Metallurgy, a 'Recognised Professional
Organisation' (RPO) included in a list posted on the ASX website
from time to time. Mr. Stevens is employed by MDM Engineering (part
of the Amec Foster Wheeler Group). Mr. Stevens has sufficient
experience that is relevant to the style of mineralization and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the 2012 Edition of
the 'Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves'.
The information in the original announcement that relates to the
Ore Reserve Estimates, Mining, Uranium Preparation, Infrastructure,
Production Targets and Cost Estimation is based on, and fairly
represents, information compiled or reviewed by Mr. Andrew David
Pooley, a Competent Person who is a Member of The Southern African
Institute of Mining and Metallurgy', a Recognised Professional
Organisation' (RPO) included in a list posted on the ASX website
from time to time. Mr. Pooley is employed by Bara Consulting (Pty)
Ltd. Mr. Pooley has sufficient experience that is relevant to the
style of mineralization and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore
Reserves'.
Forward Looking Statement
Statements regarding plans with respect to Berkeley's mineral
properties are forward-looking statements. There can be no
assurance that Berkeley's plans for development of its mineral
properties will proceed as currently expected. There can also be no
assurance that Berkeley will be able to confirm the presence of
additional mineral deposits, that any mineralisation will prove to
be economic or that a mine will successfully be developed on any of
Berkeley's mineral properties.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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