Do not shout too loudly as the investment community does not...

Do not shout too loudly as the investment community does not want to hear about Marathon.

Happy new year all. 2007 will be massive...




China eyes Aussie industry

Mandi Zonneveldt

December 29, 2006 11:00pm
Article from: AAP


CHINA'S giant state-owned nuclear conglomerate appears to be planning an assault on Australia's growing uranium industry.
The Courier-Mail has learned the China National Nuclear Corporation (CNNC) has applied for registration as a foreign company in Australia – possibly in preparation to explore and develop a deposit in the Northern Territory.

CNNC has inspected documents relating to the release of land in the NT which is know to house two potentially lucrative uranium deposits. The company is believed to have teamed up with Chinese investment giant CITIC in the bidding process.

The Angela and Pamela deposits were discovered in the 1970s and could contain more than 10,000 tonnes of uranium.

The NT Government is believed to have received more than 30 applications to explore the area just outside Alice Springs. A decision on the leases will be made next year.

Xu Gang, chief representative for Australian consultants Sustainability in China and consultant to CNNC, yesterday confirmed the company's interest in Australia.

Speaking from Beijing, he said a Chinese delegation had recently visited the Northern Territory. He said the company would consider exploration opportunities as well as advanced development projects and had toured existing uranium operations in South Australia earlier in the year, including BHP Billiton's Olympic Dam and the Honeymoon uranium mine.

CNNC also sent a representative to the Australian Uranium Conference in Perth in July.

The company has already dipped its toe in the water here, signing a letter of intent with Australian-listed Uranex to explore and develop uranium projects.

China aims to quadruple its nuclear power capacity by 2020 and is looking for ways to secure its uranium supply.

China appears to be jostling for position in the uranium industry ahead of a mooted change to Labor's policy on the development of new uranium mines next year.

The Chinese government-owned Sinosteel Corporation agreed in September to pay $40 million for a 60 per cent stake in two outback South Australian uranium projects, owned by PepinNini minerals.

CITIC has also built a position in uranium explorers Marathon Resources and Southern Gold.

Uranium stocks were among the star performers on the ASX yesterday after Prime Minister John Howard said nuclear power was part of the solution to the nation's energy needs.

Two of the biggest gains were by ERA which jumped 62¢ to $20.80 and Summit Resources, up 27¢ to $3.03.