Boss Energy has announced that its Honeymoon uranium project in South Australia is making strong progress toward commencement.
The project, located 400km north of Adelaide and approximately 75km north-west of Broken Hill, first received approval in October 2022.
Committed expenditure under the re-development program has now reached the halfway mark, totalling $55.1 million.
Achievement of this major milestone means the project is running on time and on budget.
“To reach the halfway mark on time and on budget at any project is an outstanding achievement, particularly given the current high-inflation environment shortages of skills and equipment,” Boss managing director Duncan Craib said.
“I would like to thank our staff and contractors for their dedication .
“This result positions Boss to capitalise on the growing demand for uranium, especially from western countries, as leading utilities around the world look to lock in new long-term contracts and diversify from Russia as a supplier.
“The strong outlook is reflected in the growing level of inquiry we are receiving from utilities, which is coinciding perfectly with the development progress at Honeymoon, setting us up for a pivotal second half of the year.”
The project’s start-up is expected to get underway in the December quarter of this year, with recruitment for senior operational and project leads progressing well, with an emphasis on local and South Australian employees.
“Costs for new mines, with some notable exceptions, have risen as inflationary effects are included in feasibility studies, meaning the incentive price is now widely seen as being around $US80 per pound,” Craib said.
“This will severely restrict the availability of new supply, further helping to ensure the market remains tight.
“There is also a growing push among buyers to reduce their dependence on any individual company or geographic area. The recent contracts signed with developers, despite the availably of lower cost supply from existing producers, is evidence of this.
“If utilities continue to work towards reducing dependence on Russian supplies, fixed-term uranium demand could increase significantly during 2023, leading to higher term prices.”