Company News

REFILE-Uranium One slashes production forecasts

(Refiles to fix typo in headline)

TORONTO, Oct 30 (Reuters) - Uranium One UUU.TO said on Tuesday it was slashing it 2007 and 2008 production forecasts due to problems at three of its operations.

The Toronto-based miner said it expects to produce about 2.1 million pounds of uranium this year, down from a previous forecast of 2.5 million pounds, due largely to delays in commissioning equipment at its Dominion Reefs plant in South Africa.

For 2008, production is expected to be 4.6 million pounds, down from 7.4 million pounds, due largely to a shortage of sulphuric acid that is expected to delay the ramp-up of Uranium One’s South Inkai and Kharasan mines in Kazakhstan.

“The company is seeking longer-term solutions to the sulphuric acid constraint,” Uranium One said in a statement.

The acid shortage is due to delays in completion of a local Kazakhstan copper smelter, it said.

Uranium One said it expects production of about 8 million pounds in 2009 and about 11 million pounds in 2010, as more projects come on line.

In September, Chief Executive Neal Froneman told Reuters the company aimed to produce about 28 million pounds by 2013, which would bring its production in line with current world No. 1 producer Cameco Corp CCO.TO.

Uranium One’s shares slipped 22 Canadian cents to C$12.73 on the Toronto Stock Exchange on Tuesday. The news was released after markets closed.

$1=$0.95 Canadian