Antinuclear

BHP gives up on uranium: Olympic Dam may mine copper only

BHP is now looking at less capital-intensive options for the mine, focusing on copper.

BHP shuts uranium arm; nuclear-fuel prospects dim
http://www.marketwatch.com/story/bhp-shuts-uranium-arm-nuclear-fuel-prospects-dim-2012-12-06  By Robb M. Stewart MELBOURNE, 6 Dec 12, –BHP Billiton Ltd. BHP +0.19%  has shut its uranium division, responsible for its Olympic Dam copper-and-uranium mine, in a reflection of dimmed prospects for the nuclear fuel.

The South Australia mine has been folded into its base metals division, the company said in a statement Thursday.

Olympic Dam has been the highest-profile casualty of a cost-cutting
drive by the mining company amid rising costs, a persistently strong
Australian dollar and sharp falls in the price of industrial
commodities. In August, BHP shelved plans for a US$30 billion
expansion of the South Australian mine that included boosting uranium
production by more than fourfold.

BHP also agreed in August to sell its Yeelirrie uranium deposit in
Western Australia to Cameco Corp. (CCJ) for US$430 million.

Market prices for uranium have only partially recovered from a sharp
fall in the wake of an earthquake in Japan last year that crippled the
Fukushima Daiichi reactor complex and prompted several countries to
rethink the use of nuclear power.

Darryl Cuzzubbo will take over responsibility for Olympic Dam from
Dean Dalla Valle, who will become president of the company’s energy
coal division, BHP said. He will report to Peter Beaven, president of
base metals.

BHP is now looking at less capital-intensive options for the mine,
focusing on copper. The company expects demand for copper, petroleum
and other key commodities to grow as countries like China transition
from the rapid industrialization of recent years to consumption-led
growth.

December 7, 2012 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, business, uranium