Antinuclear

Uranium backflip a speedy decision http://www.couriermail.com.au/news/opinion/uranium-backflip-a-speedy-decision/story-e6frerdf-1226501060691 by:Robert MacDonald  :The Courier-Mail  October 23, 2012 THE most remarkable thing about the Queensland Government’s unexpected decision to lift the state’s two-decade old ban on uranium mining is the speed of its decision-making process.

It was barely a month ago that Resources Minister Andrew Cripps put the long-dormant issue back on the table by saying there hadn’t been a serious public discussion for years.

And it was less than two weeks ago that Premier Campbell Newman was writing to the Australian Conservation Foundation re-affirming pre-election promises that his Government “has no plans to approve the development of uranium mining in Queensland.”

Yesterday’s announcement caught everyone by surprise – the miners, who were delighted, and environmentalists who immediately described it as “irresponsible, ill-considered and in clear breach of pre-election commitments”.

In the short term, relatively little. On the raw numbers, uranium mining could one day be a significant part of the state’s economy – the Queensland Resources Council values reserves in the ground at $18 billion, which, in theory, could generate $900 million in royalties.

But the reality is the world uranium market is in poor shape, particularly after the Japanese tsunami, which damaged the Fukushima nuclear power plant.

The spot price for uranium yellow cake is less than US$45 a pound, which one industry insider said was only about two-thirds of the break-even price for an efficient mine.

The announcement will, however, encourage uranium explorers to step up spending. But still, Campbell Newman has gone where no premier has been game to go for more than 20 years. He now needs to convince Queenslanders he’s heading in the right direction.