Lusaka - Zambia plans to grant Denison Mines Limited two large scale mining licences soon on condition that it acquires a radioactive permit to mine uranium in the southern part of the country.
Mines Minister Maxwell Mwale said his ministry would issue licences with conditions to allow the company to sort out various issues that include a requirement for promoters to be granted radioactive permit by the Radiation Protection Board.
Denison Mines Zambia Limited had earlier applied for an environmental licence from the Environmental Council of Zambia and a permit to handle radioactive materials as well as two uranium mining licences from the country's ministry of mines.
Under the Zambian laws, mining companies should seek the approval of ECZ before they start producing uranium. The Environmental agency had already given Denison Mines Zambia Limited an environmental licence.
Denison Mines, a Canadian diversified growth oriented and uranium producer, plans to process 2,000,000 tonnes of uranium ore annually at the $118 million uranium mine project and Mutanga and Dibwe open pits in Southern Zambia.
Mwale said when he visited the mine last week that it was government's desire to assist investors develop their projects by providing an enabling environment in the country to foster growth.
"As government, we want this mine to develop as soon as possible because we are there to provide an enabling environment for investment to thrive."
Denison Mines project director for Africa, Andrew Goode said the mine would start its first production of uranium in 2012 and the full design of the mine would be completed next year.
The company has three operating mines and two uranium mills in North America with assets in Canada, United States, Zambia and Mongolia.
The company forecasts to spend $4 million in relocating people situated at the mine site in Siavonga under a programme being undertaken in conjunction with the local community.
In addition, the mine is promoting growing of vegetables for purchase by the company and plans to set up other facilities including a school, houses and a police post.
The company is working with Zambia Electricity Supply Corporation, the state-owned power utility, to establish a 132 kilovolt power line from Siavonga sub-station to carry out operations.
The mine has been exploring for uranium ore from Mutanga and Dibwe open pit for five years.
