lifting ban on uranium sales to india

it would be great for the uranium industry if the australian ban on selling uranium to india was lifted..considering they are planning on building many more nuclear power stations...

read report below

DEUTSCHE Bank believes exposure to uranium stocks is a solid long-term investment, underpinned by the move to cut global emissions.

But prepare for a few setbacks in the next couple of years, thanks largely to US government sales of UF6 (uranium hexafluoride, the material used in uranium enrichment that produces fuel for nuclear reactors), which are expected to begin about now and run through to 2012.

Add to that increased mine production from Kazakhstan over that same period. Deutsche estimates that uranium markets will move from a deficit of 6.4 million pounds this year to a 9.9m/lb surplus by 2012.

This is reflected in their price targets for three local uranium plays. The target price for Paladin Energy (PDN), which is trading today around $4.24, is $3.70; Energy Resources of Australia (ERA) is tipped to retreat from today’s $25.10 to $21; and Deutsche sees Extract Resources (EXT) dipping from today’s $8.97 to $7.50.

But don’t be too disheartened.

The Deutsche report was just being committed to print as Indian Prime Minister Manmohan Singh was outlining plans to take India’s 4100 megawatt nuclear capacity to 40,000MW by 2020 and 63,000MW by 2032.

Some time before then, one hopes, some future Australian government will have decided that the ban on uranium sales to India is a flawed policy - a decision already reached by the US, Canada, Namibia and France, among others.