Ukraine approves $815 mln for development of Novokonstantinovsky uranium mine
KYIV. Nov 26 (Interfax) - The Ukrainian government has approved the cost for building a mining enterprise at the Novokonstantinovsky uranium ore field (Kirovohrad Region) at 6.518 billion hryvni (around $815.5 million).
This decision was affirmed with a government order dated October 24, 2012.
The mining facility's capacity for ore production will come to 1.5 million tonnes per year and ore processing - 500,000 tonnes. The construction of the first complex should be finished in no later than 42 months, and the entire facility - 96 months.
According to a government order dated June 9, 2000, the earlier cost for developing the Novokonstantinovsky mine came to 1.6196 billion hryvni. Therefore, the cost of development has increased fourfold.
The Novokonstantinovsky field is part of state enterprise Eastern Mining and Enrichment Works (VostGOK), the sole producer of uranium ore in Ukraine.
It was earlier reported that the VostGOK presented its feasibility study for the field's development at the start of 2011 where the cost was projected at 6.5 billion hryvni. Sources of financing include non-budget funds such as bank loans and the company's own funds.
Test production of uranium ore has been underway at the field since June 2011.