Antinuclear

Western Australian uranium companies investing in the economic black hole of Namibia

  February 27, 2012, Today’s AUSTRALIAN newspaper carries one of their glowing pro uranium articles, entitled  Namibia is the new uranium hot spot.  It all sounds as if Australia’s uranium companies are onto a fine  thing, snapping up bargains, out to make a mint!   But then – if you read the lines between the lines, well – no.  It looks more as if  Western Australians might be  a bit stupid .  Are they really putting their money into these financial black holes?

“….Aust ralian companies have been disproportionately drawn to Namibia, in the southwestern corner of Africa, due to the large amounts of uranium sitting under those sands…..  

recently, Perth’s Paladin Energy commissioned the Langer Heinrich uranium mine, while exploration plays such as Extract Resources, Deep Yellow and Bannerman Resources have all found their way from Western Australia to Namibia…..

The Fukushima nuclear meltdown prompted a fall in the uranium price and a massive sell-off of uranium equities, leaving most stocks in the sector trading at a fraction of their previous levels….many of the new uranium mines slated for development in the near term have been shelved as a result of the post-Fukushima uranium price fall….. Not only are new mines not being built, but existing mines are struggling to keep their heads above water.

“If you look across the world, I don’t see any uranium mines — other than maybe one or two — that have the significant profitability you’re seeing in other commodities,” Jubber says.

“The current uranium price is just not sustainable.”….. Not only are new mines not being built, but existing mines are struggling to keep their heads above water.

February 25, 2012 - Posted by Christina Macpherson | General News