Russia's Uranium One raising output, holding off on new mine

Tue Mar 8, 2016 11:55am EST
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By Rod Nickel

TORONTO (Reuters) - Russian-controlled Uranium One [UOII.UL] and partner Kazatomprom are ramping up uranium production in Kazakhstan during the next three years, but Uranium One will hold off on building a new mine in Tanzania until prices rise more than 70 percent from current levels, its chief executive said on Tuesday.

Toronto-based Uranium One, the world's fourth-largest uranium producer, looks to start construction of the Mkuju River mine in Tanzania once spot uranium prices appear likely to stay above $55 per pound, Chief Executive Officer Feroz Ashraf said in an interview.

Prices have not reached that level since May, 2011. Uranium currently trades around $32.15 per pound.

(Reporting by Rod Nickel in Toronto; Editing by David Gregorio)