The company stated that in view of the continual fall in uranium prices and the scale of prospective investments on the site, launch of the Trekkopje mine had to be postponed.
Declining uranium prices have been the direct result of the recent nuclear disaster at the Japanese Fukushima plant in March 2011, with the disaster leading to reducing the appetite of many companies for new projects.
Uranium price currently stands at $45.75/lb, a steep decline compared to $69.63 in February 2011, reported Reuters.
The project is about 80% completed and utilizes the heap-leaching extraction process and according to Areva the project, which is estimated to cost $10m a year for maintanence, is viable only at a price of $75/lb or more.
Construction at the plant is expected to finish by December 2012, with a capacity to generate 3,000t of uranium oxide a year.
