The Czech uranium mine targeted by West Perth-based uranium explorer Uran Ltd will continue to be explored solely by government enterprise DIAMO, although the door has not closed entirely on the proposal.
A company announcement quoting Czech Minister for Trade and Industry Martin Riman said while DIAMO would conduct exploration to extend the current reserves, any construction of major capital works for exploration at depth would require a partner.
Should DIAMO be successful in defining further reserves, Uran Ltd could be allowed to participate in the mining.
The full text of a company announcement is pasted below
Uran Limited (ASX:URA) advises that a response has been received from DIAMO, the Czech state enterprise responsible for mining at the Rozna underground uranium mine, to the Company's proposal to participate in future exploration and mining at Rozna.
The Minister for Trade and Industry, Mr Riman, stated at a press conference at Rozna last week that in late March or April he will recommend to Government that mining be allowed to continue at Rozna, which had been scheduled to close in 2008. He advised that exploration to extend the current reserves will be carried out by DIAMO, without involvement of any domestic or foreign party. Minister Riman also stated that a partner would be needed to assist with major capital works for further mining at depth.
DIAMO has confirmed in its response to Uran Limited that it will carry out the necessary exploration for extensions to the mine at depth. Should it be successful in defining further reserves, Uran Limited will be offered potential participation in the mining.
Investment by the Government of the Czech Republic in Rozna is not permitted under the rules of the European Union, and Uran understands that while DIAMO has the financial resources carry out exploration to define further reserves at depth, it does not have the capacity to fund the necessary development and technological upgrades.
Discussions between the Company, DIAMO and the Ministry continue with meetings in Prague next week.
