Preparations over the last 18 months included the field demonstration and permit/license changes necessary to implement the change to low pH solutions.
With the final regulatory amendments now nearing completion, and with the removal of the uncertainty surrounding the Section 232 petition now announced, Peninsula has decided to idle the alkaline based production activities at the Lance Projects.
This move will enable the Company to focus on completing the low pH field demonstration to within the required guidelines under the approved Permit to Mine amendment.
Peninsula’s managing director and CEO Wayne Heili said: “Peninsula’s main focus has been and continues to be on improving the cost effectiveness and productivity of the Lance Project, with the outcomes of the Section 232 investigation being outside of our direct control.
“While we recognise that there would have been benefits for U.S. uranium projects if some of the Section 232 petition recommendations were eventually implemented, we also believe the presidential action will put an end to the market uncertainty created by the Section 232 investigation.
Section 232 positive for overall uranium market
“This is positive for the uranium market as a whole as we now expect market activity to increase.
“The establishment of a working group for the expressed purpose of developing recommendations for reviving and expanding domestic nuclear fuel production should also result in a positive outcome for the Company and may lead to enhanced project economics at Lance.
“Peninsula was not a party to the petition and has been mindful throughout the process of the potential impact of some of the suggested measures on our U.S. customers.
“Peninsula will continue to work closely with our customers to maintain the existing strong relationships that have been developed.”