Antinuclear

No hope for Queensland uranium mining, with no uranium market recovery in sight

Market reality to keep uranium riches in the ground despite lifting of mining ban, Courier Mail, by: Robert Macdonald November 26, 2012 WHEN Premier Campbell Newman unexpectedly announced the end of Queensland’s uranium mining ban in late October, the share prices of selected explorers soared.

It was just a spike. Once investors recovered from their initial glee at the overturning of the 20-year-old roadblock, the reality of a uranium market deeply depressed in the wake of the Fukushima nuclear power station disaster brought them back to Earth…….

The current spot price of uranium is less than $US45 ($A43) a pound (454g), which is barely two-thirds of the break-even cost of a modern uranium mine. The long-term price is higher, about $US60 a pound, but still barely profitable.

“I don’t think anything in the world would go ahead at the moment,” Laramide Resources vice president, exploration Peter Mullens said…..
The next step for local explorers is to begin discussions with the
State Government’s uranium mining implementation committee, chaired by
Central Highlands councillor and former Local Government Association
of Queensland president Paul Bell.

The committee, which includes the Queensland Government’s chief
scientist, Dr Geoff Garrett, has been given until March to develop “a
best-practice policy framework for the orderly development and
operation of a recommenced uranium mining and export industry in
Queensland”.

Mr Mullens said that, based on the experience elsewhere in Australia,
the permitting process, once finalised by the Government, would
probably take up to three years for a company to complete.

Banking and feasibility studies could be expected to take about the same time.

This suggests that even if the market recovers quickly and the Newman
Government signs off on its new regime within months of receiving its
implementation committee’s recommendations, Queensland is unlikely to
see a new uranium mine before 2016 or 2017 at the very earliest…..
http://www.couriermail.com.au/business/market-reality-to-keep-uranium-riches-in-the-ground-despite-lifting-of-mining-ban/story-fn7kjcme-1226523715257

November 26, 2012 - Posted by Christina Macpherson | business, Queensland, uranium