uranuim output

Looks as though BHP will pickup the required extra output.

www.news.com.au 19/7/2005

THE Federal Government wants BHP Billiton (bhp.ASX:Quote,News) to dramatically increase uranium production to meet growing world demand for supplies from Australia.
BHP (bhp.ASX:Quote,News) 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.
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BHP (bhp.ASX:Quote,News) 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.