Energy company Berkeley Energia (ASX:BKY) is finalising arrangements to commence construction of its Salamanca uranium mine in Spain.
This comes as production cuts are being announced at some of the world’s largest uranium mines, which the company said will likely result in a 12 per cent reduction in primary mine production this year.
The Salamanca mine is the only major uranium mine in construction in the world this year, and is scheduled to reach production as the market enters a supply and demand deficit, according to the company.
The company said the project continues to receive strong support among key stakeholders in Spain, and has been supported with up to US$120 million from the Oman sovereign wealth fund.
After receiving the first tranche of US$65 million of funding in November, the company is filling key management positions and finalising capital and operating costs.
Shares in Berkeley Energia (ASX:BKY) are trading 3.3 per cent lower at $0.89.