labor likely to dump its no new u mines policy

Source: www.news.com.au/business

Labor tipped to U-turn on uranium
By Cameron England
March 23, 2007 09:23am

THE federal Labor Party is likely to dump its long-held no-new-uranium-mines policy in April, the South Australian resources minister predicted yesterday.

Paul Holloway told the Paydirt 2007 Uranium Conference the SA Labor Government was "very confident the no-new-mines policy will change".

"The Premier wants it to change, the Deputy Premier wants it to change and I want it to change," Mr Holloway said.

"The ALP needs to change its policy because here in SA there are projects that are well on the way to beginning the approvals process."

While federal Labor's resources spokesman Senator Chris Evans has already signalled a change to the party's controversial policy, he has also indicated supplies to any country that has not signed the nuclear non-proliferation treaty would be restricted.

Mr Holloway's speech and other comments at the conference - including an address from federal Labor leader Kevin Rudd's lobbyist brother, Greg Rudd - lifted uranium stocks.

ERA rose 94, or 3.87 per cent, to $25.22, while shares in uranium explorers were solid.

Mr Rudd warned the 380 conference delegates, who came from across the world, the nuclear industry would lose credibility if it failed to supply the debate with "cold, hard, irrefutable facts".

Nevertheless, uranium exports were set to double to more than $1 billion within the decade.

Australian Uranium Association executive director Michael Angwin said middle Australia had dropped its long-held opposition to uranium exploration.

"This shift has occurred under the influence of a high level of economic understanding, including the link between jobs and exports, awareness about climate change and growing appreciation that uranium does not produce carbon dioxide emissions in generating electricity," Mr Angwin said.

He predicted uranium demand would increase 50 per cent in the next 25 years and would outstrip supply within the decade.


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