The move is likely to affect about 70 employees although fewer employees would be required when the mine will undergo care and maintenance program.

Wholly owned by Russian state company JSC Atomredmetzoloto since mid-October 2013, the Honeymoon mine is located about 500km north by road from Adelaide, 80kms northwest of Broken Hill.

SA Chamber of Mines and Energy chief executive Jason Kuchel said uranium prices are expected to improve over the next 18 months to two years.

"There will be increased demand from Japan, South Korea and especially China," Kuchel added.

Prior to the acquisition by Atomredmetzoloto, the uranium project was 49% owned and operated by Canada based Uranium One.