AUSTRALIA'S uranium industry is pulling itself from exile and emerging as a key player in the global response to alternative energy sources.
Uranium-friendly South Australia has again led the way with Environment Minister Peter Garrett approving Alliance Resources' Four Mile deposit on Tuesday, making it only the third uranium mine approved in 20 years.
Minerals Council of Australia chief executive Mitch Hooke says the contribution Australia can make to the world's energy security would be significant.
ABARE, the nation's chief commodities forecaster, had said up to 64 nuclear power plants would be commissioned worldwide in the next six years, and China is said to be planning to build at least 20 nuclear power plants in the next decade.
"This is one area where Australia is a significant producer," Mr Hooke said.
"We have something in the order of a third of the world's economic demonstrated resources and we have those at the lower end of the cost curve. We have a comparative advantage and a competitive strength.
Up to five uranium mines could be operating in Australia next year.
The three operating mines are Rio Tinto's Ranger mine in the Northern Territory -- the nation's biggest -- BHP's Olympic Dam and the smaller Beverley mine, both in South Australia. Honeymoon, also in South Australia, is targeting production for later this year and in May, BHP signalled plans to develop the $17billion Yeelirrie deposit in Western Australia.
From Australia's operating mines, about 10,000 tonnes per annum of uranium oxide is produced, with Four Mile expected to do about 2000 tonnes when it comes on stream.
"We'd go from an export income of just over $1bn and you could substantially increase that three- or fourfold."
Alliance managing director Patrick Mutz said Four Mile now needed its final permit -- a mining lease -- from the state government before it could move to construction of the plant, with a January 2010 start-up targeted.
The discovery, made in 2005, is considered the largest uranium discovery in Australia in the past 25 years.
Last month, Alliance Resources said its deposit had nearly doubled to 28,000 tonnes of contained uranium oxide.
"The importance about the project, though, is its grade, which is now the second-highest of all uranium deposits known in Australia," Mr Mutz said.
He said the grade was about 10 times higher than BHP's Olympic Dam and double that of Rio's Ranger mine.
"There is no question that the size of this resource is larger than the Beverley mine ever was and we are looking to upgrade that in another two months as more drilling has been done," Mr Mutz said. "We are now looking at a deposit with a mine life of 15 years but quickly moving towards a possible 20-year mine life."
Mr Mutz, who has previously run the Beverley mine, said with any mining project, but particularly uranium, getting environmental approvals involved an element of risk.
But he said the path had been cleared by the Beverley mine, approved in 1999, and its in-situ leach mining process.
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