BHP buys more Olympic Dam licences Jun 27 2012 http://news.ninemsn.com.au/article.aspx?id=8490254 BHP Billiton has bought four exploration licences for areas in the Olympic Dam region in South Australia for $3 million.
BHP bought the licences, and five exploration licence applications, from mineral exploration company Copper Range, which had been reviewing its presence in the Olympic Dam region since the departure of a joint venture partner.
BHP is currently considering a massive expansion of its copper, gold and uranium mining operations at Olympic Dam.
No sign of a future for Jabiluka uranium mining
No start on horizon for Jabiluka development, SMH, Peter Ker, June 21, 2012 Development of Australia’s most prospective and controversial uranium deposit, Jabiluka, is unlikely to happen in the next decade despite its leaseholder improving relations with local indigenous groups.
That’s the view of analysts visiting the Northern Territory operations of uranium miner Energy Resources of Australia this week.
ERA is currently hosting major investors on a tour of its mines and leases near Kakadu National Park, in a bid to promote its recent decision to spend $57 million on a ‘pre-feasibility’ study into turning its Ranger open cut mine into an underground operation.
But discussion of ERA’s future inevitably turns to Jabiluka, which has remained untapped for years out of respect for the wishes of the local indigenous Mirrar people…… ERA, which is majority owned by Rio Tinto, has been targeted by environmental groups who believe its proximity to Kakadu is inappropriate. http://www.smh.com.au/business/no-start-on-horizon-for-jabiluka-development-20120621-20pju.html#ixzz1yYEL25eI
BHP funds a study to lead to nuclear power and nuclear submarines for Australia
Sub study to look at nuclear options BY: VERITY EDWARDS The Australian June 20, 2012 UNIVERSITY College London will study whether the Australian navy could use nuclear propulsion in its next generation of submarines, despite the federal government ruling out its use in the immediate future.
UCL’s Adelaide-based International Energy Policy Institute, headed by Tim Stone, the senior adviser to the British Secretary of State for Energy and Climate Change, began its academic program this year with $10 million in funding from BHP Billiton and other energy companies……
The Gillard government has committed to building 12 submarines in Adelaide, but has ruled out nuclear propulsion. ….
The university will look at a third generation of submarine capabilities, which would also involve research into how long it would take to enable a civil nuclear market to be up and running in Australia.
The IEPI will this week advertise internationally for a uranium and nuclear power researcher, whose work will tie in with the submarine project. The researcher will evaluate the nation’s role in the nuclear fuel cycle, uranium enrichment and opportunities for the Australian market, and the lifecycle and environmental footprint of nuclear power.
ERA’s Ranger uranium mine continues to be a money pit
Ranger uranium miner ERA predicts loss of up to $60m, BY: BARRY FITZGERALD The Australian June 20, 2012 RANGER uranium miner Energy Resources of Australia has flagged a $50 million to $60m loss for the first half.
The forecast loss by the listed Rio Tinto subsidiary was made by the company in presentation notes filed with the ASX ahead of a two-day tour by analysts of the Northern Territory mine….
.. Earlier this month, ERA approved $57m for expenditure on a study into the potential of the Ranger 3 Deeps mine. A decision on its viability is due in late
2014.
All is not well with Australia’s uranium industry
for all the hype, uranium accounts for a lousy 0.3% of Australian export revenue and a negligible 0.02% of Australian jobs. The industry’s future depends on the nuclear power “renaissance”, but global nuclear power capacity has been stagnant for the past 20 years.
The uranium price tanked after the Fukushima disaster and so far there is no sign of a bounce.
Australian uranium industry in trouble after Fukushima, June 2, 2012,Green Left, By Jim Green A protest walk from Wiluna to Perth took place last year against the proposed Wiluna uranium mine.
These are interesting times in the uranium sector. The mining companies have had a few wins in the 14 months since the Fukushima disaster, but they’ve had more losses.
Bill Repard, organiser of the Paydirt Uranium Conference held in Adelaide in February, put on a brave face with this claim: The sector’s hiccups in the wake of Fukushima are now over with, the global development of new nuclear power stations continues unabated, and the Australian sector has literally commenced a U-turn in every sense. Continue reading
Development of uranium mining in Western Australia is far from assured
Australian uranium industry in trouble after Fukushima, June 2, 2012, Green Left, By Jim Green “………As elsewhere, it has been a miserable year for the uranium mining wannabes in WA. At least two projects have been put on hold. Continue reading
Economic viability of new giant Olympic Dam uranium mine is in question
BHP Could Net $6 Billion By Selling Olympic Dam Stake: Deutsche WSJ, By Robb M. Stewart, 8 June 12 With question marks hanging over the timing of BHP Billiton’s massive expansion of the Olympic Dam mine in South Australia, could a sale of a minority stake to a strategic partner offer the answer?….. The expansion of Olympic Dam is one of three $10 billion-plus “mega” projects that BHP’s board is due to decide on by the end of the year.
But with costs in Australia and other countries escalating and commodities prices slumping, the thinking of many analysts is that approval for one or more projects will be deferred.
In a research report, Deutsche valued Olympic Dam after all five phases of its expansion at about $14 billion on a life-of-mine net present value. But the internal rate of return was a modest 11.3% due to the large upfront cost to develop an open pit at the mine site….. http://blogs.wsj.com/dealjournalaustralia/2012/06/08/bhp-could-net-6-billion-by-selling-olympic-dam-stake-deutsche/
BHP investors disillusioned with Olympic Dam uranium mine expansion plans
Sell stake in mine, BHP urged Olga Galacho , Herald Sun June 09, 2012, BHP Billiton should cheer up its shareholders by undertaking a radical sale of 20 per cent of its copper-uranium Olympic Dam mine to a venture partner, broking
house Deutsche Bank suggested yesterday. Analyst Paul Young estimated such a deal could fetch about $6 billion, which the miner could use to fund the first part of its expansion plan for the South Australian mine and boost returns to shareholders.
But his counterpart at UBS, Glyn Lawcock slammed the idea, saying shareholders would be highly disappointed if BHP sold part of a tier-one asset….. BHP chief executive Marius Kloppers this week continued to stoke speculation that the miner might put the giant mine expansion on ice indefinitely..… Deutsche Bank believes investors are reflecting their disillusionment with the value of these long-term projects in the share market.
Uranium market flat, listless, sluggish and languishing, and getting worse
Uranium Lacked Energy In May June 5, 2012 International Business Times, The best you can say for the global uranium market in May is; at least it was steady. Other commentators used words like flat, listless, sluggish and languishing, with the slight dip in the spot price over the last week of the month doing little to help matters.
Industry consultant TradeTech reports there were just 17 transactions in the uranium spot market last month, with just a tad over 2 million pounds U3O8 equivalent shifted over the course of May. The level of activity was well down on April, with the previous month seeing 3.2 million pounds being traded.
The bulk of May spot market buyers were traders, with the market seeing few signs of life coming from utilities. ….. There was little in the way of Australian broker commentary on the topic of Uranium last week, although JP Morgan analyst Mark Busuttil did say he thought current uranium spot prices were too low and did little to encourage new production.
Marius Kloppers twists and turns as he hangs on to his baby – the big scheme – Olympic Damn uranium mine
Complicated messages from Marius Kloppers as he tries to promote his baby – the planned new giant open cut uranium mine at Olympic Dam:
- Kloppers pays a little lip service to renewable energy – but he doesn’t want BHP Billiton to be involved in that.
- Kloppers says that fossil fuels, especially gas are the go, for now, but nuclear power will come into its own, – later
- Kloppers sees the Olympic Dam development as being 10 years or more away from completely functioning
- Kloppers admits that BHP would withhold investment in Olympic Dam, if necessary
- Kloppers wants a better deal on royalties and taxes – to make the big project work (even more concessions than BHP already has?)
- Kloppers wants “flexibility” in the workforce – I wonder what that flexibility would really mean (?crush the unions, fly-in workers, negotiating conditions – from BHP’s position of relative power)
Kloppers backing down on $80 billion expansion , talking to ABC – talking about solar cells ‘we are going to stick to our knitting: He says that natural gas and nuclear power will have very big roles before renewable energy takes over – quoted on ABC Business News 7 June 12
BHP poised to reveal ‘dramatic’ carbon plan SMH Peter Ker June 6, 2012 “… When asked about the world’s future energy choices this morning, Mr Kloppers said fossil fuels were likely to persist as the world’s preferred source of energy, with alternative forms of gas set to enjoy a period of strength……”Longer term the world is going to continue to work on nuclear products and that has to augment the energy mix at some time.”… Olympic Dam in South Australia – expected to be a decade or more away from full exploitation.
BHP vows to stay the course on major projects : By Christopher Russell The Advertiser June 07, 2012 “… Analysts have raised questions about BHP’s ability to invest in three major projects due to go to the BHP board this year – Olympic Dam, expanding the Outer Harbor for iron ore exports from Port Hedland and the Jansen potash
project in Canada…….
BHP would stick to its strategy, but it also would be flexible and withhold investment if necessary. “We will only trigger development of these options (BHP’s pipeline of projects) when our measures of success can be sustainably achieved,”
he said.
To maximise opportunities for Australia, it was important for policy makers to lay a competitive environment. That meant caution on royalties and taxes and the creation of a labour market with high flexibility…
As China’s summer hots up, its desire for Australia’s coal cools down
China cancels thermal coal contracts http://www.abc.net.au/rural/news/content/201206/s3515966.htm By Caitlyn Gribbin, 01/06/2012 Australian coal producers may be considering closing their mines because Chinese buyers are defaulting on thermal coal contracts. China, the biggest user of coal, wants a lower price for the commodity
and an analyst says until that’s negotiated, Australian thermal coal exporters won’t be able to sell their product.
James O’Connell from Platts Coal Report says Australian miners will have to make some tough decisions.
“In the next couple of months there’s definitely a possibility that if there’s not a hot summer in China, if coal burn goes down, their stockpiles are going to kick in, the exports from the United States are going to hurt Australian producers.
“They’re going to be in a position where they might have to consider closing down mines or at least temporary shut downs. “In Australia, that’s an absolute possibility.”
Investors not happy with giant uranium mine project, Olympic Dam’s future is questionable
BHP’s chairman Jacques Nasser said the company would not proceed with all of its previously planned $80 billion worth of expansion plans.
Platypus Asset Management portfolio manager Prasad Patkar says Olympic Dam is not the company’s top expansion priority….. When asked if Olympic Dam project’s future was more questionable, Mr Patkar summed it up in one word: “yeah”.
Olympic Dam expansion may fall at last hurdle ABC News, By business reporter Michael Janda May 31, 2012 Analysts estimate the cost of BHP Billiton’s proposed Olympic Dam mine expansion at $30 billion, making it one of the biggest corporate investment commitments in history.
But the latest global economic wobbles appear to have given the world’s largest miner a severe case of commitment-phobia. Continue reading
As BHP reins in spending, Olympic Dam uranium mine the most likely project to drop
BHP’s investment plans and faltering share price have been a concern for investors, …… Analysts and government ministers have estimated the investment in expanding Olympic Dam could top $30 billion ….
BHP’s New Mine Projects Look Less Assured, WSJ,May 31, 2012, BHP Billiton’s more cautious approach to investment may mean approval for several $10 billion-plus “mega” projects won’t come this year, setting the stage for heightened friction with governments and increased calls for cash to be returned to shareholders if development spending is reined in. Continue reading
Clean Energy Finance Corporation (CEFC) a winning strategy for superannuation investment
After decades of failed renewable energy support programs, the Clean Energy Finance Corporation (CEFC) will prudently apply public funds to support private investors in bringing forward a more diverse, cheaper, cleaner energy supply. This is the winning strategy for mums and dads with their money in super and the investors who oversee it. The CEFC will build the foundations of the future our nation is demanding.
We can all invest in clean energy, SMH, Simon O’Connor May 24, 2012 “…….With the CEFC, the last pillar of the Clean Energy Future package is soon to become law. This makes it a good time to look at why the rest of the world is embracing this method of accelerating renewable energy investment, in a time of intense global spending pressures. Renewables are one of the few global industries that registered continued growth throughout the GFC. Clean energy investment is up 500 per cent since 2004.
Couple this with longer-term energy forecasts and most governments can see the importance of getting behind clean energy. Investing now in diverse sources is critical for the holy trinity of power: energy security, insurance against price shocks and lower energy prices.
Despite our coal and gas resources, Australia is in no way immune to potential price shocks. Most energy analysts believe it is only a matter of time before our cheap fossil fuels inflate to international prices, Continue reading
BHP reluctant to develop its Western Australian Yeelirrie uranium mining project
Procrastinating BHP pressured over uranium deposit, Rania Spooner May 23, 2012 BHP Billiton has been challenged to develop or sell a West Australian uranium deposit, amid growing speculation it may offload the deposit later this year.
Despite a pro-uranium WA government, BHP Billiton delayed submission of the draft environmental review and management program for its Yeelirrie uranium project in June, citing a failure to meet internal standards and flagging a delay of at least six months. Almost a year later,.. speculation grows that a sell-down of the asset is imminent Continue reading
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