Rio Tinto Plans to Double Uranium Output

By Anonymous

EXPANSIONS As the world looks for alternative sources of fuel, Rio Tinto intends to expand its uranium production to meet those demands.

“Our aim is to double production over the next five years or so,” said Preston Chiaro, chief executive of the firm’s energy and minerals division.

Rio Tinto mines uranium, which fuels nuclear power plants, at Rossing in Namibia and at the Ranger Mine in Australia.

Ranger is operated by Energy Resources of Australia (ERA), of which Rio Tinto owns 68 percent.

Chiaro put current output at around 4 kt/a (4,400 stpy) Rossing and 5 kt/a (5,500 stpy) at ERA. He said the firm hopes to raise production by digging more uranium at or near its existing mines.

“There is a lot of work going on in the vicinity of Rossing and ERA,” Chiaro said.

Rio Tinto is also looking at other sites in Africa, Asia and Australia.

The firm would make an announcement in June or July about how much the ERA expansion will cost, and in September about Rossing, Chiaro said.

Uranium prices have risen tenfold since the start of the decade as global energy needs have boomed, and as power consumers and producers seek alternatives to fossil fuels such as coal and oil.

“Every energy source has its downside,” Chiaro said. “With nuclear, it’s waste disposal or concerns about terrorism.

“With waste disposal, because of the length of time involved, it’s going to have to be a solution that involves governments,” he said.

Copyright Society for Mining, Metallurgy, and Exploration, Inc. Apr 2008

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