The Mauritanian Government has signed off on the last outstanding permit for the Tiris Uranium Project, paving the way for Aura Energy Ltd (ASX:AEE, AIM:AURA) to move rapidly on mine construction.
Authorisation given
The authorisation to develop, mine and produce uranium oxide concentrate (UOC) was issued by the National Authority for Radiation Protection, Safety and Nuclear Security - L'Autorité Nationale de Radioprotection de Sûreté et de Sécurité Nucléaire (ARSN) on July 12.
This is the last material licence required to commence construction, mine and produce uranium from Tiris and propels the company towards its final investment decision (FID), expected in the first quarter of next year.
The company now expects approvals for the export of uranium to be granted as part of a routine export monitoring program and in accordance with international safeguards for monitoring the movement of radioactive materials.
No limit on volumes
The regulations do not place a limit on volumes of future uranium production, meaning there is flexibility for the operation, including the potential for future expansion of production rate beyond 2 million pounds per annum of U3O8.
The company is investigating production rates on the back of the considerable 55% increase in the mineral resource to 91.3 million pounds of U3O8 announced last month.
A major international company that specialises in the transportation of radioactive materials has been contracted to provide future seaborne transportation of the UOC produced from Tiris to international converters.
It seems AEE has the full backing of the Mauritanian Government, which has, by order of Prime Minister Mohamed Ould Bilal, formed an inter-ministerial committee to facilitate and support the development of Tiris and the uranium mining industry in Mauritania.
The committee will be headed by ARSN and will be a central point of contact for all ministries to facilitate and support the rapid development of the future Tiris uranium mine.
The authorisation to develop, mine and produce UOC follows the start of funding activities and multiple project development activities announced earlier this month including:
- appointment of owners’ team to develop the project;
- mine plan optimisation and project expansion studies;
- engineering company Lycopodium undertaking project optimisation and cost review;
- water resource development; and
- Environment Social Governance (ESG) framework development.
High levels of support
“We are very pleased with the very high levels of support and confidence shown by the Mauritian Government towards Aura and the development of a long-term globally significant uranium mining industry in Mauritania, commencing with Tiris,” Aura managing director and CEO Andrew Grove said.
“The final approval and formation of the inter-ministerial committee are important steps as we rapidly progress towards FID and developing a uranium mine at Tiris in the near term.
“There are also numerous activities underway that should materially enhance Tiris’ Project FEED economics of NPV8 US$388 million and IRR 36% after tax.
“We look forward to keeping shareholders and stakeholders informed regarding Aura’s and Tiris’ rapid progress.”