First Uranium grants marketing rights to Traxys

Traxys Group has been granted exclusive marketing rights over uranium production from the Ezulwini mine and Mine Waste Solutions (MWS) tailings re-treatment operation, First Uranium has announced. The agreement with Traxys, a global metals, minerals and energy marketing company, excludes any uranium from the two South African operations that might in future be sold to fulfil domestic requirements. According to First Uranium president and CEO Gordon Miller, Traxys will enter into market-related transactions for short-term delivery at or near uranium spot prices while production at the South African operations ramps up, and then work on long-term contracts with utilities to build a portfolio of sales contracts. First Uranium says it is also maintaining regular contact with South Africa’s Department of Minerals and Energy (DME), national power utility Eskom and the Nuclear Energy Corporation of South Africa (Necsa) to keep abreast of domestic uranium requirements. Yellowcake production is expected to begin at Ezulwini in October 2008 and at MWS in early 2009.

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