Antinuclear

Fall in the value of Queensland’s uranium resources – a non viable industry

Five sizing up uranium
John McCarthy
Courier Mail 1/3/13
QUEENSLAND’S uranium resource has been estimated at 40,000 tonnes, with five companies expected to vie to be the first to develop it.
AREVA Resources Australia, Paladin Energy and its associate Summit Resources, Laramide Resources and Mega Uranium are in the mix, according to the Australian Uranium Association.
But the resource estimate has led to environmentalists claiming the industry is nowhere near as viable as the Government and the industry had previously claimed.

The Australian Conservation Foundation said that estimate would be worth only $3.36 billion on current spot prices, 75 per cent lower than the industry’s previous estimate of $18 billion.
‘‘In the case of Queensland, claims made about in-situ resources need to factor in the technically difficult – and therefore uncertain and potentially expensive – nature of a number of these deposits,’’ the ACF’s Dave Sweeney said.
‘‘Obviously there is a vast chasm between the two figures of $18 billion figure and $3.36 billion – the October 2012 figure is 5.4 times higher than the February 2013 figure.

‘‘Put another way, the value of Queensland’s uranium resource has fallen by $14.64 billion in the short space of four months.
‘‘If this pattern continues, the value of Queensland’s uranium resource will fall to zero in March 2013.’’

However, only about 10 per cent of the uranium market is on the spot price with the rest negotiated in long-term contracts that differ widely from the current market price.
The ACF is pushing the debate towards a comparison of the industry’s viability against its potential impact and have made a submission to the State Government’s implementation committee headed by Paul Bell which will report in March…

March 1, 2013 - Posted by Christina Macpherson | business, Queensland, uranium