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Berkeley Energia sinks into limbo

Suddenly, construction of the group's Spanish uranium mine has been thrown into serious doubt
October 19, 2018

“We think despite all the noise, the science will outgrow this populist trend against nuclear.” That’s what Paul Atherley said in July, when the Berkeley Energia (BKY) chief executive sat down with us to discuss the company’s plans for and obstacles to the construction of the Salamanca uranium mine in Spain.

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That project now appears to be in serious jeopardy. Earlier this week, Reuters published a report suggesting the Spanish government has decided not to deliver the permits required to open the mine, which Berkeley has long said will be one of the lowest-cost producers of yellow cake in the world.

The story quoted an unnamed government source who said Spain’s new government “will wait for the ongoing proceedings to go through but it will say no”. Another source is reported to have said Berkeley is “living in a parallel universe” if it thinks the mine will become a reality, which has prompted the company to seek “immediate clarification” from authorities.

Liberum analysts Ben Davis and Richard Knights said such a pre-emptive decision would, if substantiated, clearly be an existential crisis for the company”. “We also believe it is unlikely that the government is going to make an official comment, putting the project in purgatory,” the pair added in a note to investors.