Amec Foster Wheeler wins FEED Contract for Project in Spain

Uranium Processing Plant

Amec Foster Wheeler wins FEED Contract for Project in Spain

Amec Foster Wheeler has been awarded a Front End Engineering Design (FEED) contract by Berkeley Energia for its uranium processing plant at its Salamanca Project, in western Spain. The scope of work by Amec Foster Wheeler will include engineering and procurement services to determine the capital cost of the front end crushing plant, as well as detailed engineering of the plant in preparation for the construction phase.
(ed. WoMaMarcel - 20/2/2017)
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Berkeley Energia's Salamanca Uranium Project in western Spain has a Net Present Value of USD  531.9 million.

London, United Kingdom – The contract will be executed by Amec Foster Wheeler’s South African mining company MDM Engineering. Amec Foster Wheeler previously carried out the Definitive Feasibility Study (DFS) phase for the project during which a smart design approach was adopted that will enable significantly reduced capital costs.

In July 2016 Berkeley published the results of a Definitive-Feasibility Study confirming that the Salamanca project will be one of the world’s lowest cost producers capable of generating strong after tax cash flow through the current low point in the uranium cycle. The project has a Net Present Value of USD 531.9 million with an internal rate of return of 60% based on a discount rate of 8%.

The Definitive Feasibility Study has reported that over an initial ten year period the project is capable of producing an average of 4.4 million pounds of uranium per year at a cash cost of USD 13.30 per pound and a total cash cost of USD 15.06 per pound during steady state which compares with the current spot price of USD 26 per pound and term contract price of US$41 per pound.

The project, which will be using the open-pit & transfer mining method, has an initial mine life of 14 years based on mining and treating only the Measured and Indicated resources of 59.8 million pounds.

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