Australian news, and some related international items

Mad monk Abbott also ignorant – about uranium mining

 Abbott Out Of His Depth On Mining, New Matilda , 27 Aug 2012 Does Tony Abbott understand the Australian mining sector?  His inept response to the Olympic Dam announcement showed him mangling the basics of public policy, writes Ian McAuley Last week BHP-Billiton announced that their profit had fallen from $US32 billion in 2010-11 to a mere $US27 billion last year, and that they were shelving their  $30 billion Olympic Dam expansion.  . Tony Abbott’s commentary on the event exposed him as an Opposition Leader way out of his depth and brought forth confusing statements about the progress of the resource boom.

Abbott’s claim that the carbon tax and the minerals resource rent tax (MRRT) were behind the decision to drop the Olympic Dam expansion was quite at odds with the company’s announcement that the decision was about capital construction costs and “subdued commodity prices”.

The resources at Olympic Dam are uranium, copper and gold, none of which is subject to the MRRT. If anything, global action on climate change should have been expected to boost uranium demand, but the price of uranium oxide has fallen  from a peak of $US290/kg in 2007 to around $US110 now, the Fukushima accident and the tumbling price of gas and photovoltaics having dampened any expectation of a price recovery….

August 30, 2012 - Posted by | AUSTRALIA - NATIONAL, politics, uranium

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