Uranium stocks hot after ban ends Nigel Wilson May 01, 2007
URANIUM shares rose yesterday as investors cheered the decision by the Labor Party to drop its 25-year-old ban on new uranium mines, paving the way for industry expansion. Energy Resources of Australia, producer of more than a tenth of the world's uranium supply, jumped 74c, or 3 per cent, to $25.22. Western Uranium, seeking the mineral in Western Australia, rose 2c or 7.7 per cent to 28c. Eromanga Uranium, with projects in South Australia and WA, rose 3.5c or 11 per cent to 36.5c.
Delegates at the party's annual conference voted on Saturday to allow the uranium industry to develop "under the most stringent conditions".
The South Australian government will capitalise on the policy change by speeding up the application process for dozens of companies seeking uranium exploration licences.
Premier Mike Rann yesterday told a mining conference that business interest in uranium projects could be pursued, now that developments were no longer limited to existing mines at Olympic Dam, Honeymoon and Beverley.
Mr Rann's comments came as Queensland Premier Peter Beattie moved to quieten debate on the issue, telling Labor figures the state ban on uranium mining shoud remain and the issue should not be debated at the state ALP conference in June.
Mr Rann said the licence applications were in addition to the 160 approvals already issued by his government.
"There are 10 mining exploration licences in a queue now, I want to fast-track those," Mr Rann said. "The great thing is while we've got 60 companies currently exploring for uranium, they've been saying to us 'If we find things' - and they have been finding things - 'we can't develop them.'
"That is no longer a brake on our economy, and that's why it's important."
Australia has about 40 per cent of the world's known uranium.
The WA Government yesterday said companies were offering to establish nuclear waste receival facilities. Premier Alan Carpenter disclosed the approaches, as he continued to justify his opposition to uranium mining despite the ALP scrapping its "no new mines" policy.
Mr Carpenter, who voted for the new policy, said the change in Labor's position was that it would allow the states to determine whether to mine uranium or not, and if so, how much.
Asked if his Government would allow nuclear waste dumps, Mr Carpenter said the people of WA were opposed to such a proposal. "Great financial benefits are being offered and promised to WA if we establish an international nuclear waste facility here."
Additional reporting: Bloomberg
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