four-fold increase in uranium output at olympic da
Spot price for uranium on LME is now US$33.25 (rose 25 cents). In Tne Australian newspaper yesterday, BHP will explore for uranium outside of Australia as well.
BHP Billiton has pointed towards China and a growing global demand for nuclear power to ensure viability for a proposed $5 billion expansion and a four-fold increase in uranium output at Olympic Dam.
According to a report in The Age, BHP Billiton's Roger Higgins told a federal parliamentary inquiry the company was confident of finding buyers for the projected output of 15,000 tonnes per year.
"Clearly energy demand is going to increase worldwide and I think everybody accepts that it will be substantial," Higgins reportedly told the inquiry.
"All of the current energy sources are likely to increase along with that…but what we anticipate is that uranium as a proportion is likely to increase."
Olympic Dam is currently the focus of a $300 million pre-feasibility study which is due by the end of 2007. The operation currently produces around 4000t of uranium per year.
The parliamentary inquiry is examining the global demand and strategic importance of Australia's uranium resources, and the potential implications for global greenhouse gas emission reductions.
BHP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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