Toro Energy’s Wiluna uranium project is looking very vulnerable and unceratin
WA Should Leave Its Uranium In The GroundNew Matilda By Dave Sweeney, 6 March 13, “…….Toro Energy — a small and unproven uranium company — is seeking to open WA’s first uranium mine near Wiluna in the East Murchison region, around 600 kilometres north of Kalgoorlie. Toro has no proven corporate mining experience, and their costly and controversial project and is facing strong community, political and civil society opposition.
Toro Energy’s major shareholder, OZ Minerals, has described Toro as “a tiny company” and a “non-core asset” and Toro is facing severe financial constraints. The proposed Wiluna uranium mine is on the Lake Way arid zone lake system which includes mulga and acacia shrub land and sand dunes and spinifex plains. It is also home to a number of unique and endemic groundwater dependent plants and animals.
Despite attracting over 2000 formal public objections, state government support has seen the mine fast tracked through the state environmental approval process.
Even so, Toro’s hopes to have the project approved ahead of the state election have now stalled. Federal environment Minister Tony Burke has extended his decision-making time and requested further information on how the mine would impact on precious regional water resources and manage its radioactive mine wastes.
Given the clear policy difference between the two major political parties on whether the uranium trade has any place in the West, this lack of full and final state and federal approval means the Toro project is even more vulnerable and uncertain…… Continue reading
The imminent decline of Australia’s coal export industry
CLP Holdings, the Hong Kong based company that is one of the largest power companies in Asia, said it wouldn’t invest any more money in coal-fired generation in India following the disastrous results of its latest 1,200MW investment…… It will focus entirely, it says, on renewables such as wind and solar from now on in India.
Fossil fuels put on notice – the party is about to end REneweconomy, By Giles Parkinson 4 March 2013 The Australian and the global fossil fuel industry have been given stark warnings by two heavyweights of the international finance sector that their future will not just be constrained by political decisions to limit emissions, but by the lack of, or the high cost, of finance.
The first warning comes from Deutsche Bank, which says that China’s use of thermal coal is likely to peak within a few years, and by 2017 it could become a net exporter of thermal coal rather than a large importer. This, says Deutsche Bank, is likely to have a significant impact on coal prices.
The implications for the Australian coal sector, and its massive expansion plans in ports, mines and rail infrastructure in Queensland and NSW – led by the likes of Gina Rinehart and Clive Palmer – is that the long term price of thermal coal will not be sufficient to make these investments profitable. They could, in fact, become the acts of the greatest futility if they go ahead.
The second warning comes from leading credit ratings agency Standard & Poor’s, which in a report released on Monday predicts credit downgrades and negative outlooks in the oil sector because of the potential carbon constraints driven by global climate change policies. Continue reading
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…
The uranium market is a dead cat, even in China, for the foreseeable future
It’s now clear that the “nuclear renaissance” is dead in the US.
The situation in Europe, and of course in Japan, is even worse. Again, and despite the absence of cheap gas, the economics simply don’t stack up
[China’s] plans for renewables have been steadily upgraded, China’s nuclear plans were scaled back substantially after Fukushima…. the establishment of a track record of safe construction and operation in China will take at least a decade, which means that any global renaissance won’t start delivering benefits until after 2030.
the current decline looks set to continue for a long time. Unless new mines are profitable at prices of $40/tonne or less, they will probably be uneconomic.
Uranium exports: bonanza or bust? http://johnquiggin.com/2013/02/23/uranium-exports-bonanza-or-bust/ February 23rd, 2013 John Quiggin Note: The usual sitewide ban on discussions of nuclear power is lifted, for this post only
Queensland’s ban on uranium mining was lifted last year, and a committee is due to report soon on the conditions under which mining might be restarted. As recently as a year ago, the prospects for uranium exports looked bright, despite the Fukushima disaster. In March last year, the Bureau of Resource and Energy Economics predicted “prices close to $100 a pound between now and 2015, rising to $124 in 2016 and $141.6 in 2017, in constant 2011-12 Australian dollars.”
In reality, however, the price has fallen to $US43/pound in early 2013 and looks set to decline further. Looking ahead, the future of nuclear power looks bleaker than at any time since the industry began. Continue reading
Mining billionaire Andrew Forrest fights Cauldron Energy for uranium mining rights
Billionaire Miner Fights Rivals to Halt Digs on His Ranch. Business Week. By Elisabeth Behrmann and Joe Schneider on February 17, 2013 Andrew Forrest, Australia’s richest man who made his fortune digging up iron ore, is fighting bids to exploit the mineral wealth under his own half-a-million acre family ranch in the nation’s remote northwest outback.
Forrest, 51, founder and executive chairman of Fortescue Metals Group Ltd., the biggest seller of high-yield debt in the mining industry, sued to block attempts to search for uranium on his Minderoo ranch and last month failed in a bid to halt sand mining on the property….
“In Australia, by law, you only own the top meter, everything underneath, that is owned by the people of Australia,” Peter Strachan, a resources analyst at Perth-based StockAnalysis, said in a phone interview. “If someone puts in a request to explore on your land, you have to deal with that and make sure you’re compensated for access.”…..
Forrest is also fighting on a second legal front. Cauldron Energy Ltd., chaired by another mining entrepreneur, Tony Sage, applied for exploration licenses over some of Minderoo on April 4 for its Yanrey uranium project. Forrest & Forrest filed objections on May 8. A hearing date hasn’t been set yet………http://www.businessweek.com/news/2013-02-17/billionaire-miner-fights-rivals-to-halt-digs-on-his-ranch
Cameco’s Kintyre uranium project not economically viable
Cameco shares down following $168M write down on its Kintyre uranium mine The Canadian Press February 11, 2013 SASKATOON – Cameco has confidence in the long-term value of its Kintyre project but it’s not economically viable at current uranium prices and had to be written down by $168 million, CEO Tim Gitzel said Monday.
He said uranium would have to be at least US$67 per pound “to make that project interesting.”….. it is not economical at current market prices and drilling results last year weren’t as encouraging as hoped “so we’ve put it into our bull pen for now.”He said the 2011 Fukushima nuclear crisis has caused “a pause” in demand for uranium.
“There’s been high-profile countries like Germany, who had 17 reactors operating before Fukushima and quickly shut down eight and are just running nine now and plan to phase out (the rest) over time,” said Gitzel….
The Australian uranium industry is in a bad way – with a doubtful future
recent steps by BHP to cuts of its uranium program — from the delay of the uranium production expansion plan at the Olympic Dam project to the selling of a large Yeelirrie deposit located in Western Australia.
Recent Ranger and Olympic Dam issues along with various problems related to notable Australian uranium projects like Angela/Pamela, Kintyre, Oban, Wiluna and Koongarra, amongst others, have also caused concerns about the future development dynamics of the local uranium industry.
Australia’s uranium industry hits turbulence Mining.com, Vladimir Basov | February 8, 2013 Recent news from Australia raises serious concerns about the future development of its domestic uranium industry. While established players are exiting the market, others are lining up to explore new areas and have made some positive moves.
Open-pit mining operations at Ranger mine were terminated at the end of November 2012. Continue reading
Delay for uranium mining in Queensland – it’s not economic
Mining uranium “a little time” away http://blogs.abc.net.au/queensland/2013/02/mining-uranium-a-little-time-away.html 04 February 2013 by Emma Cillekens Mining uranium in Queensland is still “a little time” away, according to the chair of a committee appointed by the State Government to assess best practice approaches to the mining.
The Uranium Implementation Committee toured Mount Isa late last week to speak to local authorities, mining companies and traditional owner groups about mining uranium.
The group also visited the last operating uranium mine in the state, Mary Kathleen mine (pictured), which closed in the early 80s.
Committee chair Paul Bell says there are still a couple of things that need to be considered before uranium mining can happen.
“There’s a challenge at the moment, the price [of uranium] is very low,” he said.
“Any application for a mining application approval will in itself take two to three years.”
The committee will spend three weeks working on recommendations and will present a report to the State Government next month.
BHP had made “some very bad decisions” regarding Olympic Dam uranium mining- slashes jobs –
VIDEO http://www.abc.net.au/news/2013-02-06/bhp-billiton-slashes-jobs-at-sa27s-olympic-dam/4504834 
ABC News, 7 Feb 13, BHP Billiton slashes jobs at Olympic Dam mine BHP Billiton is cutting dozens of jobs at its Olympic Dam mine in the South Australian outback, but it is unclear exactly how many positions will go.
At least 60 employees and an unknown number of contractors will lose their jobs.
In a statement, BHP Billiton said a reduction in functional and operational roles at Olympic Dam was necessary and would affect employees and contractors…..
Big loss for Australian uranium company ERA
Australia uranium miner ERA books steep 2012 loss http://www.marketwatch.com/story/australia-uranium-miner-era-books-steep-2012-loss-2013-01-31 By Ross Kelly SYDNEY–-Energy Resource of Australia Ltd. said Thursday annual losses deepened to 218.8 million Australian dollars (US$227.4 million) due to weak uranium prices, a high Australian dollar and the cost of rehabilitating a recently-depleted mine bordering Kakadu National Park.
The company, which counts Rio Tinto Ltd. as its largest shareholder, said the net loss for the year to Dec.31 compared to a A$153.6 hole in 2011.
ERA stopped mining at its only producing pit, Ranger, in November and will process stockpiled ore while it decides whether to build a new underground mine there. The company produced 3,710 metric tons of uranium oxide in 2012 and forecast production sourced from stockpiles in 2013 of between 2,700 and 3,300 tons.
ERA also announced that its chairman, David Klinger, would retire next month and be replaced by current non-executive director Peter McMahon.
Paladin uranium company’s losses: cuts staff in Malawi, Namibia and Australia
According to KYJD Publicist Stevenson Simusokwe, PAL had promised the
people of Karonga a referral hospital, good road network in the district
and free water.
But from the retrenchment statement, dated January 24 2013, PAL says it
has been operating at a loss and further adds that circumstances beyond
its control have led to the decision to trim down its staff not only at
Kayerekera but also at its Langer Heinrich Mine in Namibia and at the
company’s head office in Australia.
The company has been able to remain in operation only due
to continued financial support provided by the parent company, Paladin
Energy Limited.
Paladin to cut Malawi staff at Kayerekera mine by 18 percent 25
January 2013 The Maravi Post, by PIUS NYONDO
MZUZU–-Paladin Africa Limited (PAL) says it will reduce the number of
employee at its Kayerekera Mine (KM) in Malawi’s border district of
Karonga in response to economic hardships caused by dwindling uranium
prices on the global market, MaraPost has learnt. Continue reading
15% fall in uranium price in 2013 – a problem for Rio Tinto
While Rio thought it was buying the asset at the bottom of the uranium
market – which had been badly depressed after the Fukushima nuclear
disaster in March 2011 – it was soon proved wrong when prices for
sales of uranium fell by close to 15 per cent in 2013.
Rio’s uranium foray faces write-down, The Age January 21, 2013 PeterKer RIO Tinto’s most recent acquisition could be among those written
down next month when the miner reveals full details of the $US14
billion in impairments that cost chief executive Tom Albanese his job.
Australian analysts believe one of those smaller write-downs could be
against the Canadian uranium deposits acquired by Rio just over one
year ago in its $638 million acquisition of Canadian junior Hathor
Exploration.
That deal gave Rio a prospective uranium deposit called Roughrider,
but only after a bidding war with uranium major Cameco that saw the
two rivals swap improved bids several times. Continue reading
China the major shareholder in Western Australia’s new uranium exploration company Zeus
China backs new WA uranium play Nick Sas, The West Australian January 18, 2013, China Inc has joined WA’s uranium hunt, with the State-backed China Metallurgical Geology Bureau revealed as the major shareholder in new uranium explorer Zeus Resources.
In a deal that ignores the gloom surrounding Australia’s limp initial public offering market, Zeus will hit the boards on Monday after successfully raising $13.5 million to jump-start its uranium exploration projects scattered around WA…… China National Nuclear Corporation chairman said last year it would speed up investments in overseas uranium mining exploration, with a particular focus on Australia and Africa, in order to meet the energy company’s growing demand for uranium.
In March last year China Guangdong Nuclear Power Group completed the $2.2 billion takeover of WA’s Extract Resources, which owns the Husab uranium asset in Namibia…. http://au.news.yahoo.com/thewest/business/a/-/wa/15872030/china-backs-new-wa-uranium-play/
ERA still planning an underground uranium mine for Northern Territory Ranger site
ERA beings approvals process for Ranger 3 Deeps uranium mine http://www. miningaustralia.com.au/news/era-beings-approvals-process-for-ranger-3-deeps-ur 16 January, 2013 Cole Latimer
Energy Resources of Australia has formally begun its statutory approvals process for the proposed Ranger 3 Deeps underground uranium mine.
It today lodged a referral with the Commonwealth Department of Sustainability, Environment, Water, Population and Communities (SEWPaC) as well as with the Northern Territory government.
It comes after the miner was accused of expanding said operations without environmental assessments.
ERA is investing around $120 million to construct an exploration decline to define its existing resource.
Construction of the decline began in May last year, with closed space drilling scheduled to commence in quarter three of this year.
The miner has also allocated an additional $57 million for a prefeasibility study into the development of an underground mine.
In Malawi Australian uranium company Paladin accused of poor corporate responsibility
Paladin, Malawi given 14 days to renegotiate uranium deal, by Charles Kufa, Nyasa Times, 14 Jan 13, Malawi’s opposition Peoples Transformation Party (Petra) has added its voice to the concerns raised by African Forum and Network on Debt and Development (AFRODAD) that the government of Malawi had made a bad choice of project given the absence of transparency and accountability in the deal.
PETRA president Kamuzo Chibambo tol d reporters in Blantyre on Monday that his party has given Paladin and President Joyce Banda’s administration 14 days to explain why the uranium mining deal can’t be renegotiated for the benefit of Malawians……
He demanded that the government should renegotiate for at least a 40% stake and selling rights in the next 14 days…..
He also asked the government to tell measures it has put in place to avoid pollution seeping into Lake Malawi…..
A representative of the CSOs Moses Mkandawire said “We would like paladin to declare all what it has sold. The government also should declare all what it has received from the uranium project since it started.
He said that they had also performed poorly in the area of corporate responsibility.
As CSOs he said, another deal should be made possible for the benefit of Malawians who are the real owners of the resources. http://www.nyasatimes.com/malawi/2013/01/14/paladin-malawi-govt-given-14-day-ultimatum-to-renegotiate-uranium-deal/
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