Japanese-based Itochu Corporation announced Friday it would acquire a 15% stake in Kalahari Minerals through its Australian subsidiary of Nippon uranium resources. This would Itochu major shareholder Kalahari Resources, which, in turn, is the largest shareholder of Extract Resources.
Extract Resources owns 100% of new uranium deposit in southern Namibia Rossing, which could accommodate a uranium mine in leading the world. The project is currently undergoing a feasibility study for the first production in 2013.
A preliminary report on cost estimates of the mineralization at Rossing South has indicated that the project could support a viable mining operation OpenPA developed to feed a 15 million tonne-a-year agitated tank of sulfuric acid leach plant process . Production was estimated at 14.8 million pounds of uranium oxide a year.
Itochu said in a statement that the Namibian project was one of the prospects of uranium-largest in the world, and he would receive full support from the Japanese government.
Uranium demand is expected to increase in coming years as the major industry of nuclear energy grows.
Currently, there are 436 nuclear reactors operating and 53 under construction, while 469 other new reactors are planned worldwide from February 2010.
A report by Resource Capital Research has revealed that a total of 67 new reactors are planned to be commissioned in 2016.
Itochu said it would remain committed to an aggressive approach in its business of uranium and considered greatly contributing to the stable supply of uranium to Japan.
The company has shipped about 4 000 tonnes of uranium in 2009.
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