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This evening on the The Age website...for interest

Uranium demand 'might be driven higher'



December 4, 2007 - 5:53PM

Climate change concerns could drive "unbelievable" demand for uranium in the future, says Energy Resources of Australia Ltd (ERA) chief executive Chris Salisbury.

Mr Salisbury said there was a lot of attention placed on greenhouse gas emissions and how the world was preparing for future energy demands.

"I believe there is a scenario which could create unbelievable demand for uranium, depending on this government and international governments' policy on where it acts on carbon emissions," Mr Salisbury told the Melbourne Mining Club.

"Certainly that is something we need to be aware of, the market could be much, much higher than what I have portrayed today."

ERA's flagship operation is the Ranger mine in the Northern Territory and the company is the fourth largest producer of uranium in the world.

Mr Salisbury said world electricity demand was projected to almost double between now and 2030 to 30 trillion kilowatt hours, with environmental considerations expected to drive nuclear power growth in some countries.

"Nuclear power is seen as a means of cutting greenhouse gas emissions and localised air pollution," he said.

Mr Salisbury told journalists after the lunch meeting, the price of uranium, which was about $US93 ($A106) per pound, could surge higher.

He said further price rises would depend on expansion plans by existing producers and the outcome of BHP Billiton Ltd's Olympic Dam mine in South Australia, which houses the world's largest known uranium resource.

"We could be set to see prices rise even beyond where they are now," Mr Salisbury said.

ERA is undertaking a $57 million expansion to the open-pit at the Ranger mine in a bid to extend mining to 2012 and processing out to 2020.

Mr Salisbury said a $10 million pre-feasibility study, which was examining options to further extend mine life and increase production, was expected to be completed in the first half of 2008.

He said ERA's strategy was to focus on exploitation of resources on the company's own leases, but would not rule acquisitions to help enhance growth.

ERA's largest shareholder is Rio Tinto, which holds a 68 per cent stake in the company.