Ezulwini uranium plant closes for repairs

Wednesday, 1 September 2010 Toronto-based First Uranium has temporarily closed its Ezulwini uranium plant in South Africa to replace two columns in the ion exchange section following a structural failure on a loading column. The company said that the plant will remain offline while two replacement columns are designed, manufactured, installed and commissioned. The work is expected to be completed by the end of 2010. The company said that the anticipated impact of the temporary shut down on its cash flow, loss in uranium sales and rescheduled capital is some $1.2 million. The operation of the gold plant at the site is not affected. Deon van der Mescht, First Uranium's president and CEO, noted: "As our production build up at Ezulwini is at an early stage, the overall impact to the repair will be minimal." In 2006, the company acquired the previously-operated Ezulwini gold and uranium mine, which it said contains some 2700 tU in measured and indicated resources and 78,000 tU of inferred and additional resources. The mine became fully operational in 2009. However, the ramping up of gold and uranium production from the Ezulwini mine has been slower than expected.