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ALP switch sparks uranium rush URANIUM companies are flooding onto the Australian Stock Exchange at a rate of almost one a week – and analysts say it is because of Labor's policy reversal on supporting new mines in the country. Nearly one in five companies listed on the ASX since January has interests in uranium mining or exploration. There have been 14 new uranium companies listed so far this year – compared with the 2006 total of just 22. Australian Uranium Association (AUA) executive director Michael Angwin has said research suggests Labor’s decision to allow more uranium mining could lead to a total of 15 to 20 mines in Australia within six years. Mr Angwin has said a recent poll commissioned by the AUA found that 50 per cent of respondents support uranium mining and exploration. “There’s research… which shows there are 13 projects that could potentially become mines by 2013,” he has said. Labor’s resources spokesman Chris Evans has acknowledged there has been a growth in the market, but he has said all companies wishing to mine must still gain approval from the relative state or territory government. “Companies looking at uranium mining now know they will receive export licences if they meet certain safety requirements,” Mr Evans has said. Professor of mining geology at the University of Adelaide Ian Plimer has said many companies had predicted as early as last year that Labor would dismiss its “no new mines” policy. Professor Plimer has said that even before the policy was scrapped last month, new companies were preparing to start operations. “There has been an inordinate growth of exploration in Australia,” Professor Plimer has said. “It’s a very high risk business and people are taking the risk.” But Nuclear Free Australia spokesman Hillel Freedman has said there is a fair chance that many new companies will collapse. Mr Freedman has said the costs of mining the mineral could exceed the expectations of investors. “Is it going to be economically worth it to dig it out?” Mr Freedman said. “It seems very speculative.” Mr Freedman has also said that he sees no sign that the majority of Australians will want more uranium mining. But many of the newly listed uranium companies have already had the value of their shares skyrocket. Shares in the latest uranium company listed, Oklo Uranium Limited, has doubled in price since being listed last Wednesday. There are currently three uranium mines in Australia: Olympic Dam and Beverly in South Australia; and Ranger in the Northern Territory. Article From http://www.news.com.au/heraldsun/story/0,21985,21768092-5005961,00.html Article Posted By Mark Schliebs on |
