Uranium shares off to the gallops By Jamie Freed, Sydney January 18, 2006
SHARES in West Australian uranium explorers rocketed as much as 32 per cent in response to the shock resignation of the state's staunchly anti-nuclear premier, Geoff Gallop.
Dr Gallop's fierce opposition to uranium mining has hampered opportunities for companies such as Rio Tinto, Paladin Resources, Redport, Nova Energy and Uranex to make progress on their projects in WA.
In an interview last month, Dr Gallop insisted that WA's vast uranium deposits would remain in the ground as long as he remained premier.
But with Energy and State Development Minister Alan Carpenter tipped as the favourite to replace Dr Gallop, uranium explorers believe the Government might now take a different stance on mining.
"Geoff Gallop appeared to be committed to the notion that uranium mining is a no-go zone in Western Australia," said Redport executive chairman Richard Homsany. "It's too early to call whether the way will be open for uranium mining, but what this may do is … open the issue up for proper debate and investigation in WA."
Paladin managing director John Borshoff said the change in state leadership could spark an industry lobbying campaign.
The state's Opposition Leader, Matt Birney, has voiced Liberal Party support for uranium mining in the state, and Labor's federal resources spokesman, Martin Ferguson, has encouraged WA to examine its uranium mining policy.
Mr Carpenter's views on the issue remain unknown, as he was overseas and unavailable to comment yesterday.
Former WA Greens MP Robin Chapple, who represents the Anti-Nuclear Alliance of WA, warned that yesterday's share price gains might be premature because the new premier would face fierce opposition to uranium mining from within his own party.
Uranex shares closed 6¢, or 32 per cent, higher at 25¢, and Nova Energy closed 9¢, or 14 per cent, higher at 72¢. Redport closed 0.6¢, or 7 per cent, higher at 9¢ and Paladin closed 8¢, or 3 per cent, higher at $2.55.
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