Johannesburg, South Africa — MININGREVIEW.COM — 18 April 2008 – Harmony Gold Mining Company and Pamodzi Resources Fund are planning to list shares in a uranium venture they are setting up within two to three years.
Quoting project chairman Ndaba Ntsele, Bloomberg News revealed this latest development, and also cited Harmony CEO Graham, Briggs as saying that shares of Rand Uranium Co. – as the venture will be known – will be traded in Johannesburg and on an unspecified larger exchange.
In December Harmony – Africa’s third-biggest gold producer – sold a 60 percent stake in its uranium assets to Pamodzi for US$252 million (R2 billion). “Rand Uranium plans to borrow US$350 million (R2.8 billion) to develop the assets – including the Cooke dumps, which consist of waste ore from gold mining operations – to start producing the nuclear fuel,” Briggs said.
“We don’t know anything about the uranium market and this deal gives us exposure,” Briggs added in an interview with Bloomberg at the company’s Randfontein mine, west of Johannesburg. “Harmony will also look at the uranium ‘potential’’ of some of its other operations,” he revealed.
Uranium occurs alongside gold deposits in South Africa. Companies, including Uranium One Incorporated, are seeking to develop projects in the country to take advantage of the more than 10- fold rise in the price of the radio-active metal over the past seven years, although prices have slipped in recent months.
Rand Uranium aims to produce 2.22 M lbs of the nuclear fuel a year – or 2% of world supply – at a cost of US$30 to us$35 a pound.