Laramide’s $741M Westmoreland uranium project: economics and risk notes for mine planners
Reviewed by Joe Ashwell
First reported on MINING.com
30 Second Briefing
An updated preliminary economic assessment values Laramide Resources’ Westmoreland uranium project in Queensland at about $741 million after tax, assuming a long-term uranium price of $90/lb U₃O₈, a 7.5% discount rate, 33% IRR and 2.5-year payback, with initial capital of $456 million plus an $84 million contingency. The 11-year open-pit operation is designed to process 2.9 Mtpa through a conventional mill and leach circuit, producing 4.9 million lb U₃O₈ per year at projected 95% recovery and cash costs of $32.40/lb, drawing on 27.8 Mt indicated at 770 ppm U and 11.8 Mt inferred at 680 ppm. Development remains contingent on Queensland lifting its uranium mining ban, with power options under review including hybrid diesel, solar and battery storage.
Technical Brief
- Updated PEA replaces a 2016 assessment that used a 10% discount rate and US$65/lb uranium price.
- Life‑of‑mine production totals 47.9 million lb U₃O₈, implying modest ramp‑down or grade variation versus annual average.
- Current mineral inventory comprises 27.8 Mt indicated at 770 ppm U and 11.8 Mt inferred at 680 ppm U, with no reserves declared.
- Defined resources equate to 48.1 Mlb U₃O₈ indicated and 17.7 Mlb inferred, all within Queensland’s Westmoreland property.
- PEA economics exclude any upside from satellite uranium targets, gold or rare earth mineralisation identified in the broader district.
- Project advancement is constrained by Queensland’s longstanding uranium mining ban, despite Laramide’s readiness to file a mining lease application.
- Australia’s current operating uranium mines are confined to South Australia and the Northern Territory, while nuclear power remains banned nationally.
- India’s target of 100 GW nuclear capacity by 2047, and a new Australia–India uranium supply deal, frame potential long‑term demand for projects like Westmoreland.
Our Take
Laramide Resources’ pivot to the Westmoreland uranium property follows its earlier decision to walk away from a Kazakhstan option after Kazatomprom was granted priority rights in new uranium JVs, suggesting the company is refocusing on jurisdictions like Australia and Canada where it can retain greater project control.
With uranium and uranium oxide featuring in 43 keyword-matched pieces in our database, Westmoreland’s projected cash operating cost of $32.4/lb positions it in a cost bracket that is likely competitive against many of the higher-cost uranium projects appearing in recent coverage.
Sunrise Energy Metals’ work on a 120 tpa scandium oxide expansion train at Syerston in New South Wales indicates that critical-mineral by-product streams such as scandium and rare earths, also mentioned around Westmoreland, are becoming more central to project economics and offtake strategies in Australia.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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