A newly completed economic study confirms that the Westmoreland uranium project in North-West Queensland remains a compelling development proposition, according to Laramide Resources.

The company said the preliminary economic assessment positioned Westmoreland for the next stage of development, and it was prepared to lodge a mining lease application as soon as permitted by the Queensland Government, which is upholding a long-standing uranium mining ban in the state.

The updated PEA shows that Westmoreland has the potential to become a large-scale, long-life uranium operation and could be an attractive supplier of choice to global utilities, given its location in a favourable, stable political environment and low technical risk attributes according to Laramide.

“Identifying and supporting new mine development is becoming an increasingly urgent priority, especially given the rapidly increasing demand requirements of a global nuclear energy industry that is once again growing strongly,” Laramide president and chief executive officer Marc Henderson said.

“The recent state visit of the Prime Minister of India, Shri Narendra Modi, to Australia is noteworthy in this regard as the two nations signed a long-stalled uranium supply agreement and Prime Minister Modi was quoted as saying Australia’s huge uranium reserves are directly connected to India’s nuclear journey.

“While we concur that Australia’s uranium endowment is substantial and applaud the mutual intent that often emerges from these types of high-level political meetings, the reality is that Australia’s relevance as a consequential and reliable uranium supplier is diminishing quickly and will require pro-active actions on the part of national and state political leaders in Australia if the country intends to reverse its shrinking share of what is now an expanding global uranium market.

“Allies in the region – many of whom are highly reliant on nuclear energy – would also welcome policy clarity on the uranium mining issue, as the development and execution of national energy policy strategies are optimised by long-term policy stability.”

The operation would cost about $US456 million to bring online (plus US$84 million contingency).

The PEA contemplates a conventional open pit mining operation with a processing facility operating over a 11-year life at a throughput of up to 8,000 tonnes per day based on 2.9Mt per annum

Based on a long-term uranium price of $US90/lb triuranium octoxide, the project generates a post-tax net present value of $US741.1 million and a post-tax internal rate of return of 33 per cent, with an estimated post-tax payback period of about 2.5 years.

The work replaces the company’s previous study, completed in 2016.

Laramide said it incorporated a decade of technical advancement and revised market assumptions, providing an assessment of the project’s development potential in today’s uranium market.