LONDON, Jan 8 (Reuters) - Toronto-listed miner Uranium One UUU.TO said on Tuesday it plans to invest in a Russian sulphuric acid plant as a backup to secure supply.
“We intend to invest in a plant in Russia as a source of secure supply should there be another disruption in Kazakhstan,” chief executive Neal Froneman told Reuters in an interview.
“That plant can be refurbished and in production within about 18 months,” he added.
The acid shortage in Kazakhstan, due to a delay in the commissioning process of a copper smelter, prompted the Canadian uranium miner to slash its production outlook in October 2007.
The company now expects to produce 2.1 million pounds of uranium this year and 4.6 million pounds in 2008.
Reporting by Anna Stablum, editing by Michael Roddy