Berkeley Energia pleased with progress on Salamanca

(Sharecast News) - Berkeley Energia updated the market on its most recent quarter on Thursday, reporting that its focus was still on progressing the approvals required to start construction of the Salamanca mine, and bring it into production.
The AIM-traded firm said it continued to engage with the relevant authorities "in a collaborative manner" during the period, in a bid to facilitate the timely resolution of the pending approvals required to start construction of the mine.

It said its Spanish executives had met, and had constructive dialogue with, officials from the Nuclear Safety Council (NSC), the Regional Government of Castilla y Leon, and the Municipality of Retortillo during the quarter.

In late March, the company formally submitted the updated official documentation in relation to the Authorisation for Construction (NSC II) to the NSC.

The next step in the process was for the NSC technical team to complete its report, and submit it to the NSC board for ratification.

Berkeley also said that the Ministry of Environment and Development of the Regional Government of Castilla y Le?n informed the Municipality of Retortillo and the company in March that the previously-granted authorisation of exceptional land use - a perquisite for the award of the urbanism licence (UL) - remained fully valid and enforceable.

That resolution allowed the Municipality of Retortillo to advance the processing of the company's UL application.

"The uranium spot price has risen to $32.50 per pound on uncertainty surrounding Covid-19 impacts to the nuclear fuel supply chain," the board said in its statement.

"This represents a year to date uranium price increase of 30%."

During and after the quarter, its said pandemic-related supply disruptions were announced by a number of major uranium producers, including Kazatomprom and Cameco.

"Analysts expect further tightening of market conditions as the current structural supply deficit in the global uranium market is exacerbated by these and possible other Covid-19 supply disruptions."

In response to the pandemic, the Spanish government declared a national 'state of alarm' on 14 March, with associated lockdown measures coming into effect on 15 March.

As a result, the government suspended the term for all administrative and legal proceedings while the state of alarm was active, however Berkeley said the administration was still functioning, and the company had maintained ongoing communication with the relevant officials from the NSC, the Regional Government of Castilla y Leon, and the Municipality of Retortillo, to ensure the permitting processes were still being advanced.

"All of the company's team based in Spain are safe and well," the board said.

"Management was well prepared and implemented a 'work from home' policy a week prior to the government declaring the state of alarm."

At 1609 BST, shares in Berkeley Energia were own 0.82% at 9.67p.