South Australian government rolled over for BHP, but Olympic Dam uranium mine still uneconomic
High costs stall Olympic Dam BY: SARAH MARTIN, SA POLITICAL REPORTER : The Australian November 14, 2012 BHP Billiton chief executive Marius Kloppers says the Olympic Dam mine will not be expanded until the high-cost environment in Australia improves, with the resources industry overheated by too much demand.
The South Australian Labor government yesterday granted the miner an extension until October 2016 to its existing indenture agreement for the shelved mine expansion, in line with the project’s environmental approvals….. subscription only http://www.theaustralian.com.au/business/mining-energy/high-costs-stall-olympic-dam/story-e6frg9df-1226516169013
BHP Billiton should have a new Environmental Impact Statement (EIS) for controversial heap leach uranium mining
“No approval is sought to implement these initiatives at this stage” [original EIS] ”
“He has given environmental approval for one type of mining process, and has now said he will allow that approval to stand for a completely different processing technique using a novel technology that has yet to be invented, without any further assessment”. “It is simply outrageous that BHP Billiton is not being asked to seek further approvals for this completely different mining method. “
The Greens will move today to disallow the extension of the Olympic Dam Indenture approval until October 2016.
New Roxby method needs a new Roxby EIS Greens Parliamentary Leader Mark Parnell has questioned whether Mining Minister Tom Koutsantonis has the capacity to do his job, and has demanded a new Environmental Impact Statement (EIS) assessment of the proposed brand new processing option of ‘acid heap leaching’ at Olympic Dam be conducted before the project is allowed to commence.
The call comes in response to Mining Minister Tom Koutsantonis’s false claims on ABC 891 radio this morning that it was always BHP Billiton’s intention to shift to the ‘heap leaching’ process and this had been covered in the EIS:
(David Bevan: But if they’re looking at a new technology, a new way of doing this, won’t you need a new Environmental Impact Statement?) Koutsantonis: Well, no, because BHP has foreseen that in the next, you know, five to six to seven years they may have been switching to this technique. (Abraham: Was that covered by the Environmental Impact Statement?) It was, yes.
Yet in over 7,000 pages of the original EIS, the Supplementary EIS and the Government’s response to the EIS, the only mention of heap leaching is:
The feasibility of heap leaching of the lower-grade ore at Olympic Dam is under investigation. At this early stage, recoveries of copper and uranium from heap leaching appear too low, but this option continues to be investigated. Continue reading
South Australian government jumps to obey BHP? Greens will oppose extension of Olympic Dam Expansion Indenture Agreement.
BHP: Jump! SA Govt: How High? …..for 4 more years 13 Nov 12 The Greens will move in Parliament to stop any extension of the Olympic Dam Expansion Indenture Agreement.
The Weatherill Government has agreed to an extension of the starting date for the project in the controversial contract until October 2016.
“The Indenture was a dud deal for South Australia when we debated this in Parliament last year, and will still be a dud deal in 4 years’ time,” said Greens Parliamentary Leader Mark Parnell.
“Instead of again meekly accepting whatever the world’s richest resource company wants, the Government should seize the opportunity to start renegotiating terms to expand local procurement, increase royalty returns and improve environmental outcomes.
“The project appears years away. Yet, the Government has recklessly locked in last century environmental outcomes decades into the future.
“BHP Billiton appears to be moving further and further away from job-rich local processing, and yet has still managed to lock in a feeble ‘production based’ royalty rate for 45 years.
“Surely it would be better to finalise the Olympic Dam Expansion contract with BHP Billiton when the project is actually guaranteed to begin?
“That will ensure royalty rates, local processing and procurement targets and environmental conditions are based on the expectations, rules and operating conditions of the day, not locked in years ahead,” he said.
Slash and burn time for Paladin Energy with collapse of the uranium market
Paladin freezes expansion Financial Review 08 NOV 2012 Uranium miner Paladin Energy will slash costs by up to $US80 million ($76.97 million) after putting a freeze on development due to the weak uranium price.
Paladin will cuts costs by between $US60 million and $US80 million in fiscal 2013 and 2014, after undertaking an extensive review of costs and production.
The “optimisation exercise” had now become even more relevant due to the spot price, the company said in a statement on Wednesday. But the company did not reveal whether significant job losses would be forthcoming. Continue reading
Court decision for Lynas rare earths plant, but the legal fight will continue
The federal opposition MP for Kuantan, Fuziah Salleh, who has led protests against Lynas for over two years, says the fight is far from over
The hearing of an application for a judicial review into the granting of the licence is expected in a few months.
Malaysian court approves Lynas rare earths plant
http://www.abc.net.au/news/2012-11-08/an-lynas-gets-go-ahead-for-rare-earths-mining-in-malaysia/4361554 Kate Arnott, 9 Nov 12, A court in Malaysia has paved the way for an Australian company to fire up its controversial rare earths plant in eastern Malaysia. Continue reading
Move to cleanup radioactive water at Ranger uranium mine
Mine equipment transport to disrupt weekend travellers ABC Radio 105.7 Darwin, By Clare Rawlinson , 8 Nov 12 Energy Resources Australia has asked for motorists’ patience as the uranium miner prepares to transport heavy equipment from Darwin to Jabiru at speeds of 30kmph this weekend.
ERA chief executive Rob Atkinson said the company would use police escort down the Stuart Hwy and Kakadu Hwy over two days of travel. The equipment will be used in a new $220m “brine concentrator” – a machine being built at the Jabiru Ranger Uranium Mine to treat 30 years of contaminated waste water… Continue reading
Uranium One’s CEO gives “Yes – But” statement on future prospects, following latest loss
Uranium One’s CEO Discusses Q3 2012 Results – Earnings Call Transcript Seeking Alpha November 6, 2012 “…..This upcoming discussion does contain certain forward-looking information with respect to Uranium One’s operations and financial results. Actual future results may differ from expected results for a variety of reasons which are described in the cautionary statements regarding forward-looking information in our press release..
… during the quarter, we did determine that it would not be economical to mine, the South Zarechnoye satellite deposit due to lower uranium prices following the Fukushima incident together with a decrease in the resource base
resulting from recent exploration work.
As a result, we incurred non-cash expenses $79 million by writing down the carrying value of South Zarechnoye. This resulted in a net loss for the quarter of $61.6 million or $0.06 per share…… Uranium One now owns 100% of the Honeymoon mine
Danger to Townsville’s water supply, if Ben Lomond uranium mine is re-opened
Labor raises concern over north Qld uranium mine
http://www.abc.net.au/news/2012-11-06/labor-concern-over-north-qld-uranium-mine/4356092?section=business By Megan Woodward, 6 Nov 12 The Queensland Opposition has warned any resumption of uranium mining near Townsville in the state’s north risked contaminating the city’s water supply.
The State Government recently announced plans to resume uranium mining across Queensland.
The Ben Lomond uranium mine, 50 kilometres west of Townsville, closed more than 20 years ago amid serious environmental concerns. The mine is in the Thuringowa electorate of Liberal National Party (LNP) MP Sam Cox.
Deputy Opposition Leader Tim Mulherin today called on Mr Cox to become more involved in any proposals to reopen the mine. Mr Mulherin says nearby residents needed a guarantee environmental concerns do not still exist.
“The concerns related to the tail dams, cyclonic rain events and the impact the heavy metals and radioactive materials,” he said. Mr Mulherin says when the mine was closed there was concern radioactive tailings would reach the Burdekin River, which supplies water to the Townsville region.
The ABC has approached Mr Cox for comment.
Uranium One – posts market loss
Uranium One posts 3Q loss despite production increase 11/5/2012 Stockhouse Editorial Uranium One Inc. (TSX: T.UUU, Stock Forum) announced its third quarter financial results on Monday and said total production rose 23% to 3.1 million pounds from 2.5 million pounds in the year earlier period.
Uranium One is a Toronto-based company with assets in Kazakhstan, the United States and Australia…..
The company posted a net loss of $61.6 million or 6 cents a share in the quarter. That compared to a net profit of $45.8 million or 5 cents a share a year earlier. Revenue in the quarter was $142.6 million, down from $157.7 million in the year ago period.
Down 1% Monday to $2, Uranium One has a market cap of $1.9 billion, based on 957.2 million shares outstanding. The 52-week range is $3.45 and $1.98. http://www.stockhouse.com/natural-resources-news/2012/nov/5/uranium-one-posts-3q-loss-despite-production-incre.aspx#uEqGXOEW55vDjfL4.99
Uranium industry looking more and more like a long term casualty
Blind to a uranium fallout 
Business Spectator, by Robert Gottliebsen , 2 Nov 2012 I have to keep pinching myself. I see this enormous change ahead for world energy yet people keep acting as though nothing is happening.
The latest long-term casualty looks like being uranium and the already delayed BHP Olympic Dam big pit along with Campbell Newman’s hopes to resume Queensland uranium exports…
.. Last night Dundee Capital Markets cut its near-term uranium price forecast. Given that the uranium price has fallen from $US65 per pound to around $42 this was miserable news for the uranium industry and further fallout from the Fukushima disaster.
But Dundee still forecasts a return to $US65 in the long term. They may be right but as the US becomes a low-cost energy country once again – and one that is slashing its carbon output – and steaming coal prices remain low it’s going to be harder and harder to justify higher uranium prices…..
http://www.businessspectator.com.au/bs.nsf/Article/shale-gas-BHP-Olympic-Dam-Newman-Queensland-uraniu-pd20121102-ZMRF7?opendocument&src=rss
Toro borrows up big from Macquarie Bank for uranium venture
Toro raises $12m in debt , Yahoo News, 2 Nov 12 Toro Energy has raised $12 million through a convertible debt facility with Macquarie Bank.
Toro said the raising would boost its coffers to $19.5 million, which would be used to fund the completion of a definitive feasibility study for the Wiluna uranium project and finalise negotiations with potential joint venture or funding partners.
Managing director Greg Hall welcomed Macquarie Bank as a significant new stakeholder in Toro and said he looked forward to working with the investment bank in moving the Wiluna project through to financing phase… http://au.news.yahoo.com/thewest/business/a/-/wa/15274840/toro-raises-12m-in-debt/
Nuclear lobby’s Aboriginal poster boy Warren Mundine to oversee Queensland uranium mining?
Warren Mundine asked to oversee Qld uranium mining BY: ROSANNE BARRETT The Australian October 30, 2012 FORMER Labor party president Warren Mundine has been approached to oversee the resurrection of Queensland’s uranium mining industry.
Queensland Premier Campbell Newman told parliament today that Mr Mundine’s appointment to the uranium implementation committee was “subject to confirmation”. – subscription only
Poor outlook for Queensland uranium mining, but “Yellowcake Newman” presses on
The Australian Conservation Foundation’s Dave Sweeney called on Mr Newman to back up his claim that uranium exports will earn Queensland tens of billions of dollars over the next two decades, providing
thousands of jobs.
“Development plans have been shelved at Yeelirrie and Kintyre, the two largest deposits in Western Australia.
“Kakadu uranium miner Energy Resources of Australia has lost more than $180 million and BHP Billiton has walked away from its long-held plan for a massive expansion of the Olympic Dam mine in South Australia.”
Activists slam ‘Yellowcake’ Newman http://www.heraldsun.com.au/news/breaking-news/newman-names-qld-uranium-committee/story-e6frf7kf-1226506654419 AAP October 30, 2012 QUEENSLAND activists say Premier “Yellowcake” Campbell Newman’s new uranium committee is a stunt to fast-track mining of the “toxic” substance.
Mr Newman on Tuesday named members of the committee, which will establish a framework for the resumption of uranium mining in the state. It will be chaired by Central Highlands councillor Paul Bell, who has just retired as the president of the Local Government Association of Queensland, the government’s chief scientist Geoff Garrett and industry representatives.
Mr Newman said former ALP national president and indigenous leader Warren Mundine had been invited to serve on the committee and he hoped he would agree. Continue reading
Queensland government considering shipping uranium through Great Barrier Reef
Queensland uranium could be exported through reef, SMH, October 31, 2012 -The Queensland government says it would consider shipping uranium through the Great Barrier Reef if a new advisory committee made the recommendation.
The comments come as the United Nation’s environmental arm considers whether to list the reef as a World Heritage site in danger. In a report earlier this year, UNESCO identified shipping as one of the most pressing threats to the reef’s future. Continue reading
Queensland uranium would have to go to ports in Darwin or Adelaide
Queensland ports unready for uranium, Brisbane Times, November 1, 2012 – Tony Moore Queensland’s burgeoning uranium industry would bring no immediate benefit to the state’s port cities, the Australian Uranium Association has predicted.
Rather, AUA spokesman Simon Clarke said uranium would be exported via ports in Darwin and Adelaide.
That would mirror the situation in Western Australia, where uranium export is banned from local ports. Uranium from WA is instead shipped through Darwin and Adelaide.
“As matters stand now, it would seem most likely that any uranium mined in Queensland would be transported by road and rail to either Adelaide or Darwin for shipment out of Australia,” Mr Clarke said. Any port exporting radioactive uranium must be capable of carrying class seven hazardous wastes and storing waste in secure premises while waiting for commercial shipping. Continue reading
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