Salamanca uranium project stalls post-Fukushima

Plans to resume the extraction of uranium from a site in Salamanca province, abandoned in 2000, have been put back as a result of the radiation crisis at the Fukushima nuclear power plant in Japan, the Australian partner in the project has confirmed.

In 2009 Berkeley Resources reached an agreement with Spanish public company Enusa, controlled by the SEPI state holding corporation, to continue mining uranium at a site in Saelices el Chico from 2012 onwards. As Berkeley told the Sydney stock exchange, the two companies had intended to form a new entity, Newco, on March 18 in order to run the project. But for the moment that has been put on hold, along with a planned 20-million-euro payment by the Australian company to Enusa, with no further decision likely before May 22, the date of Spanish local elections.

"For the moment there has been no change worth mentioning," Enusa limited itself to saying on the matter.

The Fukushima crisis has led to a fall in uranium prices, as well as in the value of assets owned by the mineral companies which extract it. Berkeley had already had to work hard to convince the markets that the Salamanca project would be a profitable one.