Uranium goes with statesMandi Zonneveldt and Melissa...

Uranium goes with states
Mandi Zonneveldt and Melissa Maugeri
April 30, 2007 12:00am

SOUTH Australia will be the only state to allow new uranium mines despite Labor's decision to dump its "three mines" policy.
The ALP voted at its national conference on Saturday to overturn its 25-year ban on new uranium mines, but Labor leader Kevin Rudd has left the decision on whether to approve new mines in the hands of the states.

South Australian premier Mike Rann lobbied hard for the change and expects the expansion of uranium mining to create billions of dollars in revenue and tens of thousands of jobs in his state over the next few decades.

SA already has two uranium mines, BHP Billiton's Olympic Dam and the Beverley mine, owned by Heathgate Resources, and the new Honeymoon mine will begin production next year.

About 60 companies are exploring for uranium in SA. Two companies, Marathon Resources and Pepinnini Minerals, have already begun scoping studies to consider the feasibility of developing mines.

New mines could also be developed in the Northern Territory where the Federal Government has the power to approve them.

But Western Australia and Queensland, home to some of the most promising prospects in the country, remain staunchly opposed to uranium mining.

Queensland premier Peter Beattie backed the policy change but later reiterated his opposition to uranium mining in his state.

WA premier Alan Carpenter told reporters at the conference uranium mining would not happen under his watch.

"People are suggesting after the next election things will change... but whilst I am the premier in Western Australia there won't be uranium mining," he said.

The WA government could face pressure from mining giant Rio Tinto which wants to develop its Kintyre deposit in the state's north.

New South Wales premier Morris Iemma said he had no plans to change state legislation banning uranium mining.

Fat Prophets senior resources analyst Gavin Wendt said uranium stocks might enjoy a short-term surge on the back of the decision.

"Shares might get added impact on Monday and Tuesday but at the end of the day it doesn't really change a lot," he said.

The value of listed uranium explorers in Australia surged 23 per cent in the first three months of the year, according to Resource Capital Research.


http://www.news.com.au/heraldsun/story/0,21985,21640976-664,00.html