The Canadian government has approved an application by Paladin Energy of Australia, for majority ownership of a proposed uranium mine in Newfoundland and Labrador.
Greg Rickford, Canada's Minister of Natural Resources, said that Paladin demonstrated that there are no Canadian partners that would be interested in leading the development of the proposed Michelin project. Paladin acquired the project from Canada's Aurora Energy Resources in 2011.
Under the terms of the Non-Resident Ownership Policy in the Uranium Mining Sector (NROP), foreign mining companies can own 100% of an exploration project in Canada, but by the stage of first production there is a requirement for at least 51% Canadian resident ownership.
The Michelin project is located approximately 140km northeast of Happy Valley-Goose Bay, and has indicated resources 47.7Mt for 100.8Mlb U3O8.
"With the inevitable market improvement ahead, this exemption allows us to develop a uranium mine at our Michelin Project in Labrador when the uranium price is at an appropriate level and after obtaining all necessary approvals and consents," said Paladin's Managing Director/CEO John Borshoff.
"Receiving this waiver became vital in forwarding progress on this key project."
Paladin said it plans to begin its summer exploration programme in July followed by a winter drilling programme focused on further definition of the Michelin deposit.
Development of the mine is subject to environmental and community impact assessments by the Canadian Nuclear Safety Commission (CNSC) and other relevant authorities.
Paladin estimates that the proposed Michelin project could create up to 750 jobs during the construction phase and up to 350 jobs during the operational phase.
Photo: Michelin Camp, October 2014 (Credit: Paladin Energy)