Rapidly changing Australian uranium sector in spotlight in Adelaide this week

uranium_map_630_17jk0s4-17jk0s6.jpgJust how Australia’s uranium exploration and uranium mining sectors are to emerge from the current political, economic, energy feedstock and emissions reduction debate surrounding the domestic use of nuclear energy for baseload power, will be the key focus of a two day national industry forum, being held in Adelaide. The 2012 Paydirt Uranium Conference at the Hilton Hotel – has attracted the  two resources ministers from the country’s most active and maiden, uranium mining jurisdictions – SA and WA – as well as some of Australia’s most influential leaders on uranium and nuclear issues. They include new SA Mineral Resources Minister, Tom Koutsantonis; WA’s Mines & Petroleum Minister, Norman Moore; renowned international radiation expert, Canadian Dr Doug Boreham; one of Australia’s foremost female uranium proponents, Toro Energy Chair, Erica Smyth; Sir Hubert Wilkins Chair of Climate Change at the University of Adelaide, Professor Barry Brooke; and the Australian Uranium Association’s Communications Director, Simon Clarke.

“There has been a remarkable change in the Australian uranium landscape in the 12 months since the last uranium forum here in Adelaide 12 months ago,” Conference Convenor, Bill Repard, said. “The sector’s hiccups in the wake of Fukushima are now over with, the global development of new nuclear power stations continues unabated – including the recent US decision to build its first new nuclear plant in decades – and the Australian sector has literally commenced a ‘U’ turn in every sense.

“The Federal Government has flagged potential sales to India for the first time of Australian uranium, New South Wales has announced plans to allow uranium exploration, WA is well on the path to its first uranium mine with Toro Energy’s Wiluna project scheduled for construction start later this year, SA has the prospect of two to three new uranium mines in the near term, and the imminent BHP Billiton greenlight on the Olympic Dam expansion will massively increase that mine’s yellowcake production credits,” he said.

“If the March 24 Queensland poll sees a change of government, the prospects are high that a politically conservative regime in that State will open up to exploration, some of the country’s most highly prospective and until now, inaccessible uranium plays. On top of that, we have the draft Energy White Paper, now in the public arena for comment, that acknowledges that future Australian Governments may not hold the same view as the current administration barring the use of nuclear energy in Australia. The draft Paper recognises that if Australia cannot meet its emission reduction objectives by 2025 onwards from new low emission energy technologies, then if nuclear energy is to fill that gap long-term, it needs a lead time for such decisions of 10-15 years.

“This protracted period will be necessary to allow plant approvals and construction to commence, to have an appropriate regulatory framework put in place and to garner and lock down what would need to be bipartisan support.

“If you consider all of the above factors, this is an extraordinary turnaround in under a year in the current and emerging prospects for Australia’s uranium exploration and mining sectors. It is little wonder that many equities market commentators see uranium as the ‘sleeper commodity’ that is awakening with a vengeance,” Repard said.

“Whether you are a retail punter or sophisticated investor in the stock market, it would be a fair statement to suggest that Australian uranium equities, going forward, now have substantially more appeal in their potential upside than has been the case in the past 18 months or so.”