Australia's Uran makes development offer to Czech uranium miner Diamo

Australia's Uran makes development offer to Czech uranium miner Diamo

	Published : Mon, 19 Feb 2007 12:08 By : Agencies Print this Story

PRAGUE (AFX) - Australian mining company Uran Ltd said it has made a proposal to Czech state-owned uranium mining company Diamo to participate in the development of its assets, including the Rozna underground mine, the only operating uranium mine in Europe.

'We have submitted a proposal at (Diamo's) request,' Uran managing director Kate Hobbs said. 'All we want to do is to participate in mining operations.'

She declined to specify whether Uran -- the only producer of uranium in central and western Europe -- is interested in buying or taking a stake in the Czech company or arranging some form of extraction agreement.

Uran said Diamo had asked it to make a formal proposal by Feb 20.

'The Czech Republic is the world's twelfth-largest producer of uranium, with all production coming from Rozna,' Uran said. 'There is significant potential to extend the current mine life through drilling.'

New technology and a 'plant upgrade' could increase Rozna's production and profitability, it added.

Uran said in January it had asked for permission to carry out geological surveys of uranium reserves at Dolni Rozinka in the centre of the country.

Last year, the Czech government gave Diamo approval to continue mining operations until the end of 2008 because of a sharp rise in the price of uranium on world markets.

The government is expected to decide in June whether and how to continue mining after that date.

About 408 tonnes of uranium were mined in the Czech Republic in 2005, according to figures from the World Nuclear Association. Its output is dwarfed by the world's biggest producers, Canada and Australia.

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