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Vimy Resources (ASX:VMY) - Interim CEO, Steven Michael
Interim CEO, Steven Michael
Source: Vimy Resources
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  • Vimy Resources (VMY) submits a notification of ‘substantial commencement’ for the Mulga Rock Uranium Project in Western Australia
  • State Premier Mark McGowan reintroduced a uranium mining ban in WA in 2017, but he could not stop four projects, including Mulga Rock, that had already received approval
  • Vimy will now work with the relevant State and Federal government departments to obtain work approvals required to ensure Mulga Rock delivers first uranium production in 2025
  • Additionally, Chair Cheryl Edwardes announced her intention to retire from the Board on or around March 1, 2022
  • Vimy ends the day 3.92 per cent in the red with shares trading at 24.5 cents

Vimy Resources (VMY) has submitted a notification of ‘substantial commencement’ for the Mulga Rock Uranium Project in Western Australia.

This notification was submitted to the Western Australian Department of Water and Environmental Regulation (DWER).

The Mulga Rock project in the eastern Goldfields, 290 kilometres north-east of Kalgoorlie-Boulder, received environmental certification from the previous Liberal-National government in December 2016. Approvals are only valid for five years.

Current State Premier Mark McGowan reintroduced a uranium mining ban in WA in 2017, but he could not stop four projects, including Mulga Rock, that had already received approval.

Vimy has concluded the clearance of roughly 162 hectares and the movement of 800,000 bank cubic metres (bcm) of soil, which Vimy said: “constitutes substantial commencement of implementation”.

According to the company, the development of the project will positively impact the Western Australian economy, with more than 550 personnel to be employed during construction.

Additionally, it is expected to generate more than $200 million in state royalties over its 15-year mine life.

Vimy said it has invested more than $20 million on the development of Mulga Rock, with an additional $8 million allowed for the completion of the early works program, which is presently ongoing and is expected to be finished by the end of January 2021.

Vimy has now submitted a Radiation Management Plan (RMP) and Radiation Waste Management Plan to the Department of Mines, Industry Regulation and Safety (DMIRS) and Radiological Council of Western Australia.

Interim CEO Steven Michael said this is a major milestone for the company.

“Notification of substantial commencement at Mulga Rock is a proud moment and major milestone in the development of Western Australia’s first uranium mine,” Mr Michael commented.

“The Vimy Board, management and consultants have diligently advanced the project over the last five years and what our on-site team and contractors have achieved since receiving approval of the Mining Proposal just two months ago is amazing.”

Vimy will now work with the relevant State and Federal government departments to obtain work approvals required to ensure Mulga Rock delivers first uranium production in 2025.

Vimy Resources’ statement today comes after the business rejected a merger with Deep Yellow, a Perth-based company constructing a uranium mine in Namibia, last week.

Chair Cheryl Edwardes retires

Additionally, Chair Cheryl Edwardes announced her intention to retire from the Board on or around March 1, 2022.

Ms Edwardes served as Vimy’s Independent Non-Executive Chairperson since 2014.

She commented on her decision to retire, saying it was the right time.

“Coupled with the recent appointments of Wayne Bramwell as an Independent Non-Executive Director and our interim CEO Steven Michael as an Executive Director from next week, the Company is in very good hands and enjoying strong and positive momentum in our quest to deliver sustained shareholder value,” Ms Edwardes said.

“It is therefore the right time for me to help the Board undertake a global search to identify the next chair before I hand over the baton to my successor early next year.”

Vimy has ended the day 3.92 per cent in the red, with shares trading at 24.5 cents in a $268.7 million market cap.

VMY by the numbers
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