Australian uranium miner Toro declares Western Australia project as feasible
24 September 2008
Development of nuclear power continues to steam ahead throughout the world even as Australian uranium miner Toro Energy said its Wiluna project in Western Australia is economically viable following a pre-feasibility study that indicated significant scope to increase the value of the development.
Only a few days back, a proposed expansion of the nuclear power generation capacity of the American state of Texas got underway with a joint venture being formed between Luminant, the generating arm of Energy Future Holdings Corp., and reactor vendor Mitsubishi Heavy Industries. The consortium proposes to build two reactors near the existing Comanche Peak nuclear power plant. (See: Texan nuclear power production to double with Luminant-Mitsubishi consortium new reactors)
The South Australian explorer's move towards production continues the West Australian uranium revival work sparked by the election of the new pro-mining state government. The study estimated the net present value of Toro's Wiluna project was $78 million based on conservative operating parameters.
Western Australia has never had a uranium mine, but the recent change in state government means it is open to mining applications from uranium explorers for the first time. Toro's project, near Wiluna, could be in production as early as 2012 pending the outcome of a positive bankable feasibility study and successful financing.
Toro managing director Greg Hall said this could be boosted because of the potential to substantially increase processing recovery and an external consultant's assessment that there was scope to improve the ore grade estimate.
"Even a moderate grade increase scenario of 20 per cent has the potential to lift the project's net present value by an additional $88 million to $166 million with an internal rate of return of 24 per cent," Hall said, "The Wiluna uranium project is an exciting development opportunity for Toro and represents the best medium-term option for moving to producer status."
