supply shortage

ENERGY
WNA DOING ‘DREADFUL JOB'
Paladin chief predicts uranium supply shortage for one to two decades
In an outspoken presentation in Fremantle, Paladin Mining's managing director had some choice words of disdain for the World Nuclear Association. Perhaps more importantly he said the supply side for uranium would be in deficit for one to two decades.

Author: Ross Louthean
Posted: Wednesday , 23 Jul 2008

PERTH -

The managing director of the major new uranium miner Paladin Mining Ltd (ASX & TSX: PDN), John Borshoff told the Australian Uranium Conference in Fremantle today that Australia would have a big learning arc in the technical and bureaucratic areas - particularly in Western Australia and Queensland - where mining of uranium is still prohibited.

He felt the impasse on uranium mining would end earlier in Queensland than in Western Australia, not because the current Premier Anna Bligh had a differing view than predecessor Peter Beattie (she was from the same left-thinking "chardonnay set sitting on the hill"). The change, probably after 2010, would come through pressure for change from the Federal Government. Prime Minister Kevin Rudd, who led the breaking of the Australian Labor Party's 25 year old "No New Mines" policy, is also a Queenslander.

He warned that some perceptions of global growth in nuclear power - another 150 to 200 nuclear reactors - would have to take in developments pangs in the new uranium power countries, including China and India. There would, he said, be a huge "learning arc."

Some charts on nuclear power growth in the near term predicting a rising rate of 45% may actually begin at around 15%.

He said the supply side is ill prepared and that with the exception of KazAtomProm all majors appeared to be behind their original schedules due to technical problems, costs or political issues.

The supply side was expected to be in deficit for one to two decades. Borshoff said the objective of Paladin was to become a Tier One supply company and to establish a trading arm to service and exploit new requirements that evolve in a globalising uranium market.

He told delegates that the company's Langer Heinrich mine in Namibia had got behind in its production ramp up but was catching up.

Development of the company's next mine at Kayelekera in Malawi was progressing and the company was well set, having $US340 million in cash and $US167 M project debt facility for the mine.

Paladin is looking ahead at its Australian projects which include an 82% stake in Summit Resources which has projects in the Mt Isa region including Skal and Walhalla, a stake in the Bigryli uranium project in the Northern Territory and the new joint venture on the Angela-Pamela project in the same region with Cameco.

Borshoff also had a few choice words to say about the World Nuclear Association (WNA) in that he felt that the Association was doing a dreadful job in representing the industry. It was geared to the supply side but did not understand the demand side Borshoff told the conference. Calling it the World Uranium Association, he said it should be re-christened The Worst Uranium Association. The WNA was invited to comment on Borshoff's views but declined to do so