barnett....we will allow uranium mining in wa

I'd expect there will be plenty of commentary by the new government on allowing Uranium mining which is good news for Maximus's 7 m plus pounds of inferred U in the mid west of WA. Interesting to see EKM announce today a 6.2m pound U inferred resource to the East of Narndee which has their sp up 14% with bids higher. It's been some time since MXR has issued an announcement on its Uranium so won't be long before they dust of the reports which they had pigeon holed until the political climate changed in WA, which as we know, now has. Will probably take some time for analysts to get their head around what companies like mxr has in the way of a jorc'd uranium resource as it's more than just a straight uranium play.

From the ABC news website a couple of hours ago.....


West Australian Liberal Premier-elect Colin Barnett has pinpointed royalties from uranium mining as a source of funds to cover his deal with the Nationals to enable him to form government.

He also says some previously pledged major projects will suffer as a result of the agreement to spend 25 per cent of mining royalties, or $675 million, in regional areas, though he says its paramount that the state retain its AAA credit rating.

Speaking on ABC Radio's AM, Mr Barnett confirmed that he specifically agreed to the 25 per cent demand from Nationals Leader Brendon Grylls and said that it would include some existing policy pledges.

He also said that Western Australia would continue to benefit from what he he predicted would be continuing growth in the take from commodities.

He rejected suggestions that the commitment was uncosted and unfunded.

"The state does have a significant surplus, around $2 billion at present, because of the fall in the value of the Australian dollar, the Australian dollar value of mining royalties is very much greater," he said.

"We will allow uranium mining in Western Australia. That will generate more income and we will make savings across a whole range of government projects.

"I don't suggest for a moment that it will be easy, but I am as committed as Brendon Grylls is to improving the conditions outside of Perth in Western Australia.

"Western Australia is still in a very strong economic position. The growth of China, the emergence of India, even parts of the [former] Soviet Union. I mean, the demand for our minerals is enormous. Now what I intend to do is to make more of the economic boom before it runs out of steam. That will generate hundreds and hundreds of millions of dollars of revenue for this state."

Mr Barnett agreed though that there would be compromises for other promised projects as part of the process of meeting the commitment.

"There may be some changes to some major projects," he said.

"There may be some delays, but I don't suspect that they will be significant."

He also promised that the people of Perth would not miss out.

After a claim made in business circles that the pledge would compromise the state's AAA credit rating, Mr Barnett promised that retaining that rating was a "paramount consideration."

"It was the Liberal government in previous years that restored Western Australia's triple A credit rating and we will retain that," he said.

"We will not be reckless or irresponsible from a fiscal point of view."

Mr Barnett admitted his plan was yet to be costed by state Treasury.

"It has got a broad global sum on it and that is 25 per cent of royalties which today means $675 million," he said.

"We haven't decided which particular projects will be in it but the total will come to $675 million and obviously, once we assume government, we will work with Treasury on that. We are in opposition at the moment. We are not in government."

Mr Barnett said projects likely to be part of the 25 per cent deal included some existing Liberal and National party policy pledges.

"For example, the Liberal Party committed to extending the gas pipeline system through the south west of the state," he said.

"We are committed to new hospitals in Albany, a major upgrade in Kalgoorlie and a number of other things so all of those form part of this 'royalties to the region' program."