Jan. 26 (Bloomberg) -- Shiva Uranium Ltd. began gold output and plans to produce uranium “shortly” at the South African Dominion mine it bought from Uranium One Inc. last year.
“We’re looking at very shortly starting up the uranium processing plant,” Jagdish Parekh, chief executive officer of Hartbeesfontein, South Africa-based Shiva said by phone from Pretoria today. The mine, near Klerksdorp in the North West province, employs between 1,600 and 1,800 people, he said.
Uranium One, based in Toronto, halted operations in October 2008 after uranium prices fell, and sold the mine last year for $37 million. Shiva, controlled by the Gupta family of India, took control of operations in January last year after agreeing to the sale in May 2009, according to the company’s website.
The economics of the project have improved since then, with uranium rising to about $67 a pound from $37 to $40, Parekh said. Gold has jumped 41 percent to $1,331 an ounce.
Shiva is owned 74 percent by Oakbay Resources and Energy Ltd., in turn owned 85 percent by the Gupta family’s Oakbay Investments, Parekh said.
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