cloncurry - uranium belt of queensland, page-2

Whats "U" got to do with QMN ?

Qld yellowcake unlikely anytime soon22/10/2012 06:14PM AEST Uranium explorers in Queensland are unlikely to begin producing yellowcake any time soon, despite the state ban on mining being overturned.

Analysts say Mount Isa-based Summit Resources, which is 82 per cent owned by uranium miner Paladin Energy, has emerged as the frontrunner to bring its exploration projects to fruition, in north west Queensland.

Queensland Premier Campbell Newman on Monday reopened uranium mining in the state, citing Prime Minister Julia Gillard's recent support for uranium sales to India as a primary reason for the backflip.

Fat Prophets analyst David Lennox said Monday's decision would not be an industry game changer.

"None of the programs or the mines would be very far down the track, so we'd be talking about a number of years before we would see any significant yellowcake come out of Queensland," Mr Lennox told AAP.

The price of uranium has languished in the wake of the Fukushima disaster last year.

Mr Lennox said the Summit Resources project near Mount Isa would be the most likely deposit to be developed, from four major exploration projects.

"That would be the first to spring to mind, in terms of coming into likely production, and even there that would take a couple of years."

Uranium-focused explorer Mega Uranium has a deposit in the hinterland near Townsville, while Laramide Resources has a deposit at West Moreland in the Gulf of Carpentaria.

Areva Resources Australia holds exploration tenements throughout Queensland.

Mr Lennox said many companies had ignored uranium due to the ban and the weak spot price.

"The pricing's just not there to engender a massive rush for people looking for uranium," Mr Lennox said.

He predicts the conservative NSW government will soon overturn its ban on uranium mining, in line with other conservative state governments.

Western Australia's first uranium mine is still two steps away from being a reality after final state environmental approval was granted to Toro Energy's project earlier this month, four years after the WA government lifted a ban on uranium mining.

Paladin and Summit released a joint statement on Monday, saying the ban was an ideological relic from a previous time.

"Priorities can now be made on deposit quality and markets," Paladin managing director John Borshoff said.

The decision was applauded by industry associations. The Association of Mining and Exploration Companies said it put Queensland on an equal playing field to other states.

Chief executive of the Australian Uranium Association Michael Angwin said new uranium mines would be needed to supply Indian nuclear reactors.

The association is not aware of any plans by larger miners, such as Energy Resources Australia, Rio Tinto or BHP Billiton, to mine uranium in Queensland.

BHP recently dumped its controversial Yeelirrie uranium project in WA and halted the expansion of its Olympic Dam project, which has a substantial uranium deposit