Toronto and Johannesburg-First Uranium Corp. reports that it will purchase and install an “off the shelf” acid plant to produce sulfuric acid to reduce future costs and secure a supply of acid required for its two uranium and gold mining projects in South Africa, the underground Ezulwini Mine, and the Mine Waste Solutions (MWS) tailings recovery project. The acid plant will be installed at MWS, located 160 kilometers southwest of Johannesburg, at a projected cost of $124 million. The plant is expected to start production in January 2010 and produce 600 mt/d. First Uranium expects continued significant acid price increases in the near term, closely related to the price of sulfur. It says current price projections for South Africa for delivered acid are between $330-$600/mt. First Uranium’s current modeled price in 2008 is $350/mt DEL, with expectations that prices should erode to $265/mt DEL in 2009, $170/mt in 2010-2014, and $95/mt for 2014-2020. First Uranium’s analysis calls sulfuric acid at Tampa at $250/mt CFR. It forecasts a fall to $175/mt in 2009 and $80/mt in the 2010-2015 time frame.
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