Deathly economic climate for uranium, but Andrew Forrest gets into it
Andrew Forrest pumps $12m into uranium junior, SMH May 5, 2014Peter Ker Andrew Forrest’s investments continue to range far and wide, with the mining billionaire today investing millions into a uranium junior just days after he bought a beef exporting company.
Mr Forrest has today pumped $12 million into Energy and Minerals Australia as part of a broader $36 million funds injection for the company………
It’s the second raising that EMA has completed so far in 2014, despite the deathly environment for uranium.
As South Australia’s utilities raise electricity prices, solar panels are looking good
South Australians Face Another Electricity Price Hike http://www.energymatters.com.au/index.php?main_page=news_article&article_id=4288 4 May 14 Power bills for South Australians have reportedly risen by 160 per cent since 2002 – and more pain may be on the way on July 1.
A proposal (PDF) from SA Power Networks lodged with the Australian Energy Regulator seeks to increase the average residential bill (5,000 kWh annual consumption) by 5.1% ($95 annually) from July 1 this year. For households consuming 4,000 kWh annually; the increase will be 4.4% ($66 annually).
“The South Australian climate has led to lead to an extraordinary demand for air conditioning. Over 90% of homes are air conditioned with the air-conditioned floor space of these homes increasing each year. The consequent high peak network demand occurs for only a small part of the year,” says SA Power Networks.
“Extremely ‘peaky’ conditions such as these heatwaves require network assets and capacity that is under-utilised during much of the year, driving distribution costs higher on a per unit of energy served basis than comparable interstate networks.”
According to SA Opposition spokesman for Energy, Martin Hamilton-Smith, South Australian households already face the highest electricity prices in the country, with the average annual bill in SA at $2335.
South Australia already has very high solar uptake – more than 29% of eligible dwellings in Adelaide have solar panels installed. The news of this latest sting will likely push more households towards generating their own electricity.
Energy Matters’ Australian Solar Index indicates solar power installations in South Australia are one of the state’s best investments. An installation in Adelaide provides an estimated internal rate of return of 19.1%.
A 4.5kW system installed in Adelaide can provide electricity bills savings of between $1,312 and $2,150 annually. Under Energy Matters’ zero deposit Save As You Go initiative, the monthly repayments can be less than what would be paid during the same period for mains grid supplied electricity.
One of the other many benefits of going solar is that it helps to reduce the “peaky” conditions described by SA Power Networks as power is generated at the point of consumption. Without the influence of solar, price rises may be even higher. At one point during a heatwave in January this year, the state’s solar panel systems contributed over 9% to meeting power demand.
Radiation exposure to workers kept secret from property owner, by coal seam gas company
CSG company fails to tell landowner of radiation Coal Seam Gas News May 2, 2014 The Chronicle Melissa Mobbs
JULIE Fairweather simply wants an apology.
After the Chinchilla- based landowner discovered QGC workers were exposed to radiation while drilling on her property, she was horrified the company had not informed her.
Mrs Fairweather told Chinchilla News a neighbour had called to tell her about the incident the day after it had happened. “There was no phone call, no knock on the door, no email from QGC. I had to hear it through the grapevine,” she said. “It’s just dreadful, to have this happen on our property, no more than 700m from our home, and not even be told.”
QGC released an official statement last week confirming four workers were exposed to “low level radioactivity” while on the Montrose Rd property on February 28 this year.
“It would have been no problem if they had of just told me what had happened instead of trying to hide it,” Mrs Fairweather said.
“There was no regard for us or our health and safety whatsoever.”
Western Downs based anti-mining activist Graeme Henderson is speaking out on behalf of the family in an effort to find a positive solution……Mr Henderson said his biggest concern was the lack of communication between the coal seam gas company and the Fairweathers.
“Even if it is a low level of radiation, which they’ve provided no evidence of, then why hide it?” he said.“If it’s such a small risk then why go to so much effort to keep it from the land owner, that’s my question.”…..http://coalseamgasnews.org/qld/csg-company-fails-to-tell-landowner-of-radiation/
New ways for solar power to thrive in Australia, despite the Abbott government
Australian Business Sees the Light http://www.energymatters.com.au/index.php?main_page=news_article&article_id=4285 The Australian solar market has traditionally been composed mainly of residential systems. While 10% of the local market is made up of commercial installations, this number is forecast to grow to more than 50% of installations over the next few years says Energy Matters’ Nick Brass. 1 May 14 “
Powering this growth are two commonly used mechanisms. The first are leasing packages; and the second, for larger installations, Power Purchase Agreements (PPA),” says Mr. Brass.
“There are immediate benefits of these mechanisms for your business – you can see a reduction of your carbon footprint, reduce your exposure to future electricity price increases and attain a greener public image. All this with no upfront capital required, without the hassle of maintaining the solar system over time and with minimal impact on business operations.”
Mr Brass says business owners can enjoy the benefits of having a renewable power generation plant but none of the complexity, costs or maintenance associated with ownership. PPA can be particularly attractive to larger companies.
“You only pay for the solar power. So if the sun doesn’t shine and the solar electricity doesn’t flow; you don’t pay.”
Energy Matters has executed many commercial scale solar projects throughout Australia at schools, stadiums, factories and office buildings for local and multinational entities. The company’s portfolio includes solar plants for NEXTDC,Federation Square and RACV Cobram Resort.
“Our solar power systems have a track record of outperforming industry benchmarks and we deliver on time, on budget and to specification,” states the company.
Energy Matters says any business with a suitably sized roof space could harvest the benefits of a commercial scale system – just 200m2 of free roof space in good condition, unimpeded and unshaded; with preferably a northerly aspect is required.
Further information about commercial solar can be found on the Energy Matters web site or by calling the commercial team on 1300 553 213.
Electricity prices will go up with removal of Renewable Energy Target
Households face higher power bills by 2020 if renewable-energy target is scrapped, study finds , SMH, April 29, 2014 Tom Arup Environment editor, The Age Axing Australia’s renewable-energy target – currently under review by the Abbott government – would halt $11 billion in future investments and mean higher household power bills by decade’s end, new modelling has found.
The modelling, commissioned by the Clean Energy Council, which represents the renewables industry, finds power bills are higher in the short term because of the target, but households would end up about $50 a year better off in 2020 if the target is left in place.
The work is part of the industry’s pitch to protect the renewable-energy target, under which at least 20 per cent of Australia’s electricity will come from renewable sources by 2020.
The Abbott government has commissioned a review of the target, headed by senior business figure Dick Warburton, who is sceptical of the science underpinning human-caused climate change.
Prime Minister Tony Abbott has previously declared that he wants Australia to be the ”affordable energy capital of the world”,……
the modelling finds that if the target is left in place then at the end of the decade, the boost to renewable-energy facilities would displace the need to use more gas power as growing energy demand returns, keeping wholesale power prices low. The report says that as a result, average household power bills would be $51 lower in 2020 than if the target was axed, and an average of $100 a year lower after 2020.
The report also says that if the renewable energy target was repealed, $11 billion in new investments would not go ahead – and Australia’s cumulative greenhouse gas emissions would be 34.7 million tonnes higher by 2020. http://www.smh.com.au/environment/households-face-higher-power-bills-by-2020-if-renewableenergy-target-is-scrapped-study-finds-20140429-zr1ec.html#ixzz30QLYra8v
Radiation leak affects workers at Darling Downs gas site
Workers exposed to radiation on Darling Downs gas site http://www.thechronicle.com.au/news/qgc-exposed-to-radiation/2242072/ 29th Apr 2014
AN INCIDENT which left four QGC workers exposed to radiation is confirmed to have been at the hands of gas giant Schlumberger.A QGC spokesperson told the Dalby Herald the radiation was from a Schlumberger measurement device.
The incident occurred on a rig south of Chinchilla which was operated by international oil and natural gas service company Weatherford.The QGC workers were exposed to a “low level of radioactivity” and medical examinations were performed. Two Schlumberger workers and two Weatherford workers were involved.
QGC is continuing to monitor the health of its workers.
Australian uranium – a sorry history of failed predictions! (and it’s even worse now)
Dennis Matthews 26 April 14, The nuclear industry’s habit of talking up the uranium market and getting forecasts very wrong is nothing new. Here are some notes I made over 18 months and well before Fukushima.
Predictions about the Market for Uranium
7/3/07 Advertiser Higher Price tip for yellowcake.
ABARE – Uranium price is expected to peak at about $US103/lb next year (2008). It peaked at $US138/lb in June 2007.
Prices will start to decline after next year (ie in 2009). It peaked in June 2007.
World uranium production is projected to increase at an annual rate of 9% to exceed 78,000 tonnes in 2012.
This compares with a forecast for annual consumption of 90,700 tonnes of U3O8 by 2012.
Australia’s production is expected too remain relatively steady at11-12,000tonnes per year.
7/4/07 Australian Resource Capital Research – all indications are that $US140 will be reached by Sept 2008. It peaked at $US138 in June 2007. In Sept 2008 it was $US65 and then went into decline.
12/5/07 Advertiser Crossland Uranium Mines – Uranium has just reached a selling price of $US120/lb and there is nothing on the horizon to dampen the strong market demand for the power plant fuel. U prices peaked within a month and then fell rapidly from $US138/lb to $53/lb by Oct 2008.
6/6/07 Advertiser Macquarie (Australia’s biggest securities firm) – U price could reach $US200/lb within two years (by June 2009). Tipped $US150/lb by end of 2007. U prices peaked the previous week at $US 138/lb and then fell dramatically. By end of 2007 it had fallen to $US90/lb .
SXR Uranium One (Honeymoon mine) predicted the spot price could hit $US250/lb next year (2008). It peaked at $138US/lb in June 2007 and then fell sharply to $53/lb by Oct 2008.
2/7/07 Australian Resource Capital Research – Present U spot price is $US136/lb.
Indications are for $US148/lb in the near term and $US165/lb by Sept 2008. It actually peaked at $US138/lb and by Sept 2008 it was $US65.
28/7/07 Australian U prices fell from $US136/lb in mid-July to $US 120/lb this week. Analysts said prices would continue to trade higher than in the past and most said the price drop was a correction in an upward trend. It actually peaked at $US138/lb in June 2007 and then fell sharply to $US53/lb in Oct 2008.
UBS forecast that higher demand and slow supply increases would push prices to almost $US200/lb in 2008. It actually peaked at $US138/lb in June 2007 and then fell sharply to $US53/lb in Oct 2008.
5/12/07 Advertiser ERA – The price of uranium which was about $US93/lb could surge higher. We could see prices rise even beyond where they are now. From mid Dec 2007 to mid Feb 2008 it fell from $US93/lb to $US76/lb and to $US65/lb by Sept 2008.
15/12/07 Advertiser RCR Equity Research – Forward indicators currently suggest a flat outlook for uranium of around $US90/lb to $US100/lb over the next couple of months (mid Dec2007 to mid Feb 2008). Indicators currently suggest the uranium price market expectation is $US125/lb by Sept 2008. From mid Dec 2007 to mid Feb 2008 it fell from $US93/lb to $US76/lb and to $US65/lb by Sept 2008.
18/3/08 Advertiser Far East Capital – The worst of the fall in uranium price has already happened. The price could reasonably trade within the $US60-$US90/lb for the balance of this year (2008). It would be most surprising to see it fall any lower. By Oct 2008 it had fallen to $US53/lb.
27/3/08 Advertiser Resource Capital Research – Indicators suggest the uranium market expectation is $US105/lb by September 2008. It fell to $US65/lb by September 2008.
15/7/08 Goldman Sachs JB Were – Downgraded its 2009 U price forecast from $US90/lb to $US77.5/lb. It fell to $US53 by Oct 2008
18/8/08 Australian Foster Stockbroking – Expects the spot price to be back to $US75/lb by December (2008). It fell to $US53 by Oct 2008.
8/10/08 Advertiser Resource Capital Research (RCR) quarterly Global Uranium Companies – the spot price of uranium expected to trade in the $US50-$US65/lb range in the current quarter (Oct-Dec?). On the same day (8/10/08) the spot price fell to $US49/lb.
Fossil fuel shills to run Tony Abbott’s review of Renewable Energy Target
RET Review : ‘Biased And Predetermined Outcome’ http://www.energymatters.com.au/index.php?main_page=news_article&article_id=4276 The latest on the Renewable Energy Target review indicates more strongly than ever that the best time to go solar may well be now.
The solar industry has grown accustomed to shocks and dirty tactics from corners desperately seeking to cling to Australia’s old approach to energy. The shocks have continued as the RET Review process gets well under way.
In a stakeholder meeting on Wednesday, the Expert Panel and modeling team stated modelling that incorporated benefits to network operators and the reduction of wholesale electricity prices resulting from renewable energy generation was “too hard” and would not be part of the RET Review. Furthermore, the parties stated these types of benefits amounted to a “wealth transfer” as opposed to “true benefits”.
The Expert Panel and modeling team also stated any form of carbon pricing would be excluded from their modelling up to and beyond 2030. Also, the government’s 1 million solar roof policy will not be included in modeling unless funding for it is included in next month’s Budget.
Australian Solar Council CEO John Grimes states the RET Review process is heading to a biased and predetermined outcome. “.. this review is set to side with big business, giving little or no weight to the benefits of solar for householders, business and the community,” he said.
“Clearly any model that fails to consider a carbon price (in any form) up to 2030, in the face of international action on climate change, is negligent and lacks any credibility.”
Another major shock and related credibility issue resulting from the meeting mentioned on RenewEconomy was the Panel’s appointment of ACIL Allen as chief advisor and modeller, a consultancy perceived to be cosy with the fossil fuel industry.
This announcement has added to previous concerns raised as to the suitability of some members of the Panel.
Among many potential negative impacts, it’s feared the outcome of the Review will see the slashing or abolishing of remaining subsidies that currently reduce the cost of solar power systems by up to thousands of dollars. The latest news should perhaps act as a warning signal to those still contemplating installing solar that they might want to act sooner rather than later.
Rio Tinto and ERA made huge profits from Ranger mine: now not paying to restore the land?
Ranger mine: ERA attracts ire from local community over uranium rehab, Brisbane Times April 21, 2014 Peter Ker Resources reporter The relationship between Energy Resources of Australia and a crucial group of indigenous people appears to be deteriorating, after the miner raised doubts about its ability to pay for the rehabilitation of the Ranger uranium mine near Kakadu.
The open pits at Ranger have already come to the end of their working lives, and the only chance of further mining is if an exploration campaign on site, known as ”Ranger 3 Deeps”, is successful.
ERA surprised its stakeholders last month when it suggested it might struggle to pay for the rehabilitation if Ranger 3 Deeps did not go ahead.
”If the Ranger 3 Deeps mine is not developed, in the absence of any other successful development, ERA may require an additional source of funding to fully fund the rehabilitation of the Ranger Project Area,” the company said in its annual report.
ERA is 68 per cent owned by Rio Tinto, but Rio boss Sam Walsh indicated last week that Rio had already contributed to the rehabilitation costs at Ranger when it participated in a $500 million equity raising for ERA in 2011………
The comments have worried the local indigenous group – the Mirarr people – whose permission is required before ERA can conduct any further mining at Ranger.
Justin O’Brien, who runs the Gundjeihmi Aboriginal Corporation for the Mirarr people said the group’s land was being held to ransom by the miners.
”The attitude of Rio and ERA shows that little has changed in more than three decades since [land rights campaigner] Galarrwuy Yunupingu described talks over the Ranger mine as ‘like negotiating with a gun to my head’,” he said. ”The mining giants have made enormous profits at the expense of Mirarr traditional lands and are now holding the World Heritage-listed area to ransom.”
ERA has already started some rehabilitation work at Ranger, has made provisions and also has a trust for rehabilitation in place with the Australian government, which was holding $63.9 million at December 31.
A spokesman for ERA said the company’s long-term business plan was to ensure the business could meet its rehabilitation obligations. http://www.smh.com.au/business/ranger-mine-era-attracts-ire-from-local-community-over-uranium-rehab-20140420-36ymv.html#ixzz2zYdytsJ0
Aboriginal protest against the royals
The protesters are gathered at the park precinct, where the couple is due to attend a civic reception before a brief public walk later this afternoon.
“Always was, always will be Aboriginal land,” the protesters chanted.
One held a yellow placard that read: “Give back what is ours.”
Police told AAP a small number of Aboriginal protesters had been moved on at South Bank.
One activist was ushered away after going behind barricades meant to keep the royal route along Grey Street clear, outside the South Brisbane train station.
No arrests have been made.
Abbott government’s RET review policy designed to stop investment in renewable energy
Federal renewable energy review leaves investors nervous, ABC News By Lucy Shannon. 19 Apr 2014, A Federal government review of the renewable energy target scheme appears to be making industry investors nervous.
The Environment Protection Authority approved a $200 million wind farm proposal for Tasmania’s west coast earlier this month.
Despite the approval, the proponent of the Granville Harbour wind farm, West Coast Wind, is not confident of securing investment until the outcome of the Commonwealth review is known.
The renewable energy target scheme, set up by the Howard Government in 2001 aims to ensure 20 per cent of Australia’s energy is produced from renewable sources by 2020.
The scheme is required to be reviewed every two years.
Reports the Prime Minister Tony Abbott has faced strong internal pressure to scrap the RET from both the Nationals and the Liberals have led to fears it will be watered down.
West Coast Wind Director Royce Smith says he does not expect to secure investment for the 33 turbine project while the review is underway.
“It’s certainly got a few investors a bit shy at the moment, until we get the review in from the Federal Government everything’s on hold certainly at the moment,” Mr Smith said.
“It’s just a bit hard to invest money if you don’t know what the outcome is going to be, they’re just a bit nervous.”……http://www.abc.net.au/news/2014-04-19/renewable-energy-review-makes-investors-nervous/5399996
Nuclear lobby getting desperate? Flogging Small Modular Reactor Fantasy to Australia
To The Editor, The Advertiser, by Dennis Matthews, 19 April 14 Boy, do we have a deal for you! We have these super-dooper compact modular nuclear reactors (The Advertiser,19/4/14). We can’t say how many MW they would generate or how much they would cost, but the output will be less than 1/10th of the smaller (oops bigger) reactors and the proposed costs can be a fraction, somewhere between ½ and whatever.
But wait, there’s more. The essence of the technology already exists in nuclear submarines, which find them useful because they are not as smelly as generators using fossil fuels. We will put yours underground thus making it less polluting for your neighbours, except of course if they malfunction, which happens very rarely. You may have trouble with insurance but rest assured your government, like the US government, will pick up the costs at no charge to you.
It will be at least six years before the first one is built so beat the rush and get your orders in now.
Greg Hunt Australia’s Anti Environment Minister is blind to the looming catastrophe
Coal: Stop burning it, this is the next asbestos Canberra Times, April 19, 2014 Crispin Hul In the 1960s asbestos mining was a very profitable business. And it created a lot of jobs. Asbestos was very useful – indeed, one of the best insulating materials known to humankind.
The link between asbestos and cancer was known as early as the 1930s. But mining continued. ………
But asbestos was toxic. Ultimately it was more economically beneficial to leave it in the ground than use it, aside from the human cost…….
in the long term the continued use of coal will be profoundly more damaging than the continued use of asbestos. If the world continues to burn fossil fuels the way we do, the result will not be a few mesothelioma deaths (awful as they are) and some economic loss weeding asbestos out of buildings.
Rather, the result will be massive indirect economic costs because we did not have the sense to develop a gradual transition to leave the carbon-emitting toxic fuels in the ground and develop alternatives……..
Environment Minister Greg Hunt, for example, said this week in response to the latest report from the Intergovernmental Panel on Climate Change: “Coal will be used for decades and decades more.”
His bedrock position is that coal continues irrespective, and he presumes someone (like the CSIRO, whose funds his government is slashing) will come up with a workable scheme to capture and bury the emissions. Idiocy when proven substitutes are available.
Hunt should not work from the base, being utterly beholden to the coal industry and that coal will continue no matter what. Rather, he should work from a base of what do we need to do to prevent global warming. How can Australia lead in a global movement?
In 30 years Hunt will look like an asbestos miner so concerned about profits and economic benefits that he is blind to the looming catastrophe.
Sensible economists tell us it will be less costly in the long run to do something than not. And it will not cost hugely to move more quickly to wind and solar generating………
solar panels are about the best investment going. And their price is falling all the time while electricity prices continue to go up, presuming you are not renting, intend to stay put for several years and do not have shade trees all over your house.
The government should have built on this rather than continue homage to indefinite use of coal. Greg Hunt’s response to the IPPC report this week was woeful.
The federal government should do something to force electricity generators – nearly all state-government owned – to stop abusing their monopoly power by paying so little for electricity generated by residents. They should also remove their limits (usually to 5kw inverters) on the amount that can be generated from the home to the grid. That would encourage even greater investment in solar.
If they were private companies, competition law would not allow them to get away with their low feed-in prices.
A quick thought on NSW: For decades NSW politicians have pursued policies that benefit individual and sectional interests and in return have received very large donations from those interests. Those donations then go into campaigns for politicians to persuade voters that, despite the pandering to sectional interests, they are governing in the best interests of everyone in the state. Wouldn’t it be easier just to govern in the best interests of all in the first place and tell all the rich and powerful sectional interests to go jump? http://www.canberratimes.com.au/comment/coal-stop-burning-it-this-is-the-next-asbestos-20140418-36wlk.html
Labor and Liberal in lockstep in not supporting nuclear disarmament
Dennis Matthews, 17 April 14 Given that both the ALP’s and the LP’s political agenda are tied to economic growth above all else then it is easy to understand why they would not support the abolition of nuclear weapons.
Every time that there has been a reduction in nuclear weapons stockpiles the price of uranium has gone down due to the increased supply of uranium in the form of highly enriched uranium (HEU) from nuclear weapons. Flooding the market with uranium means less income for uranium mining companies.
At the moment we are seeing the other side of the supply-demand uranium market equation. Rather than increased supply we are seeing a Fukushima driven decreased demand. The end result is the same, a decrease in the spot price ahead of a decreased contract price for uranium.
After Chernobyl in 1986 ( I was in Switzerland at the time) I came to the conclusion that the probability of a nuclear reactor disaster was primarily a matter of reactor hours. The more hours of nuclear reactor operation in a country the greater the chance of another Three Mile Island or Chernobyl. On this basis I concluded that the next major disaster would occur in either France or Japan.
I still consider that nuclear hours (including processing and enrichment of uranium and plutonium) is a major determinant of nuclear disaster probability. France is still a prime suspect but it is being joined by China where nuclear, along with all other forms of electricity generation, is expanding. Despite the slowness of this expansion, the magnitude of the demand for electricity means that Chinese nuclear hours may soon overtake that of most other countries.
Morwell residents kick off campaign to keep the Renewable Energy Target
Campaign to retain renewable energy target http://www.latrobevalleyexpress.com.au/story/2224396/campaign-to-retain-renewable-energy-target/?cs=1462 April 17, 2014, Friends of the Earth representatives and members of the community came together in Morwell yesterday as part of a campaign to retain the renewable energy target.
FOTE recently kicked off its renewable energy target road trip, where they will visit 11 regions either currently using renewable energy or those they believe could transition from traditional fuels like coal.
Campaigns coordinator Cam Walker said the group feared the Federal Government could use a review into the target, to “gut” it.
“If they gut the RET, that removes all certainty for investors in the realm of renewables,” Mr Walker said.
“We want to see a refocusing of public funds away from fossil fuels and into renewables and it has to include some really substantial investment in the Valley.
“There’s a well-trained workforce in the Valley that could be transitioned.”
The current renewable energy target is 20 per cent by the year 2020.
1 This month
Chernobyl: The Lost Tapes – A good documentary on Chernobyl on SBS available On Demand for the next 3 weeks– https://www.sbs.com.au/ondemand/tv-program/chernobyl-the-lost-tapes/235274195556
20 May – Webinar – The dangerous world of AUKUS, US, military occupation and suppression of dissent
National Webinar, 20th May, 2026, 6.30pm AEST. Confronting laws restricting/suppressing protest speech and action
Speakers: Former Sen. Rex Patrick, Lawyer Nick Hanna ,Arthur Rorris ,Jorgen Doyle, Sen David Shoebbridge,
Facilitator Kelley Tranter.
of the week – Australians for War Powers Reform (AWPR)
To see nuclear-related stories in greater depth and intensity
Antinuclear 