got this from the herald sun, about bhp being pushed to produce...

got this from the herald sun, about bhp being pushed to produce more uranium



Push for more uranium
Mandi Zonneveldt, Resources
19jul05

THE Federal Government wants BHP Billiton to dramatically increase uranium production to meet growing world demand for supplies from Australia.

BHP acquired got the world's largest uranium deposit, Olympic Dam, in its $9.2 billion takeover of WMC Resources.
The Federal Government is hoping to seal a deal to sell uranium to China within 12 months and expects uranium exports to double.

Federal Resources Minister Ian Macfarlane told the Herald Sun he had planned a meeting with BHP next month, with uranium exports topping the agenda.

BHP is assessing the feasibility of a $5 billion expansion of Olympic Dam, which was on the table before its takeover of WMC. The current plans will see uranium output increase from about 4500 tonnes a year to up to 15,000 tonnes a year.









With governments in Western Australia, Queensland and the Northern Territory opposed to the development of new uranium mines, BHP is in a unique position.

While there are about 20 companies exploring for uranium in Australia, BHP alone has a mandate to increase output on a large scale.

The Federal Government has sought legal advice about overriding the states' power to block new mines.

Mr Macfarlane said the government had no legal grounds on which to act in Western Australian and Queensland, but was still exploring options in the Northern Territory.

"We're still seeking advice, both under the Constitution and under the Mining Act," he said.

That leaves South Australia as the only state with significant uranium resources able to meet future export demand.

"You have to do it all from South Australia, which is South Australia and BHP Billiton's windfall," Mr Macfarlane said.

BHP yesterday declined to comment about the meeting next month.

Uranium prices have more than doubled since January last year to $US29.50 ($A39.40) a pound, driven by growing demand and concern about tightening supplies.

China has opened six nuclear reactors since 2002 and has six more underway. India has nine reactors under construction and wants to boost nuclear power generation by 100 times by the middle of the century. A renewed push toward nuclear power is also evident in Europe and the US.

Mr Macfarlane warned yesterday that opposition to uranium development in Australia could mean the loss of tens of billions of dollars in export contracts.

Mr Macfarlane said opposition to uranium mine development was "ridiculous" and would cost the states hundreds of millions of dollars.

In a recent submission to a government inquiry into uranium, Summit Resources said development of its resources in Queensland would generate more than $2 billion in export income and create about 1000 jobs.

French giant Areva, which has interests in the Northern Territory, said Australia was forgoing almost $20 billion in revenue from uranium sales.