ahsingjai
08-08-2005, 11:56 PM
Australia to Begin Talks on Uranium Exports to China
http://www.bloomberg.com/apps/news?pid=10000081&sid=apPf8B8OXXos&refer=australia#
Aug. 9 (Bloomberg) -- Australia, the world's second-biggest uranium exporter, will start negotiations for an agreement to allow uranium shipments to China, which plans to boost nuclear energy fourfold by 2020.
The agreement will set up safeguards to ensure Australian uranium supplied to China is only used for peaceful purposes, Foreign Minister Alexander Downer said today in an e-mailed statement. The ore, used as a fuel in nuclear plants, has traded at $29.50 a pound since July 13, the highest for 23 years.
Australia has 41 percent of global uranium reserves though meets only 21 percent of demand, according to government figures, partly due to mining bans. An agreement with China may enable BHP Billiton and Rio Tinto Group, the world's biggest and third- biggest miners, to export the ore to Asia's biggest energy user.
``This agreement will be good for companies like Rio or BHP, or any other operator that has a uranium asset operating within Australia,'' said Neil Boyd-Clark, who helps manage $580 million at ABN Amro Asset Management Australia Ltd. ``This potentially represents opening up a new market, although it's still early days.''
Shares of BHP rose as much as 39 cents, or 2 percent, to A$20.31 on the Australian Stock Exchange. They traded at A$20.30 at 2:30 p.m. Sydney time. Rio shares rose as much as 1.9 percent.
China plans to build 27 power plants to meeting rising demand for energy, according to the World Nuclear Association. An agreement with China may be concluded in time for Australia to start exporting uranium there just after 2010, Australian Resources Minister Ian Macfarlane said in June.
Olympic Dam
Uranium exports from Australia may rise to A$650 million in the year ending June 30 from A$364 million in year ended June 30, 2005, according to the Australian Bureau of Agricultural and Resource Economics.
``Opening up this export opportunity with China is consistent with the growing trade and economic relationship between our two countries, and Australia's position as a secure supplier of energy resources,'' Downer said in the statement.
BHP bought WMC Resources Ltd., which produces uranium from the Olympic Dam mine in South Australia state, in June for A$9.2 billion ($7 billion). Olympic Dam hold more than a third of the world's uranium.
WMC Resources will ``significantly increase'' uranium exports to China in the next 10 to 15 years, Michael Nossal, executive general manager of business strategy & development at the former company said April 20.
Northern Territory
Rio Tinto's Energy Resources of Australia Ltd. unit is the country's biggest uranium exporter.
The government also announced last week that it would consider approving uranium projects that met environmental standards and were accepted by indigenous landowners in the Northern Territory, which has A$12 billion of deposits.
``Both these developments are positive sign from the government for uranium producers,'' ABN Amro's Boyd-Clark said.
Shares of Energy Resources, Compass Resources NL, Deep Yellow Ltd. and Marathon Resources Ltd. all rose after the government's announcement Aug. 5.
Uranium may trade between $20 and $30 a pound until 2008, a level that may encourage the development of new mines, Citigroup Inc. said July 7.
http://www.bloomberg.com/apps/news?pid=10000081&sid=apPf8B8OXXos&refer=australia#
Aug. 9 (Bloomberg) -- Australia, the world's second-biggest uranium exporter, will start negotiations for an agreement to allow uranium shipments to China, which plans to boost nuclear energy fourfold by 2020.
The agreement will set up safeguards to ensure Australian uranium supplied to China is only used for peaceful purposes, Foreign Minister Alexander Downer said today in an e-mailed statement. The ore, used as a fuel in nuclear plants, has traded at $29.50 a pound since July 13, the highest for 23 years.
Australia has 41 percent of global uranium reserves though meets only 21 percent of demand, according to government figures, partly due to mining bans. An agreement with China may enable BHP Billiton and Rio Tinto Group, the world's biggest and third- biggest miners, to export the ore to Asia's biggest energy user.
``This agreement will be good for companies like Rio or BHP, or any other operator that has a uranium asset operating within Australia,'' said Neil Boyd-Clark, who helps manage $580 million at ABN Amro Asset Management Australia Ltd. ``This potentially represents opening up a new market, although it's still early days.''
Shares of BHP rose as much as 39 cents, or 2 percent, to A$20.31 on the Australian Stock Exchange. They traded at A$20.30 at 2:30 p.m. Sydney time. Rio shares rose as much as 1.9 percent.
China plans to build 27 power plants to meeting rising demand for energy, according to the World Nuclear Association. An agreement with China may be concluded in time for Australia to start exporting uranium there just after 2010, Australian Resources Minister Ian Macfarlane said in June.
Olympic Dam
Uranium exports from Australia may rise to A$650 million in the year ending June 30 from A$364 million in year ended June 30, 2005, according to the Australian Bureau of Agricultural and Resource Economics.
``Opening up this export opportunity with China is consistent with the growing trade and economic relationship between our two countries, and Australia's position as a secure supplier of energy resources,'' Downer said in the statement.
BHP bought WMC Resources Ltd., which produces uranium from the Olympic Dam mine in South Australia state, in June for A$9.2 billion ($7 billion). Olympic Dam hold more than a third of the world's uranium.
WMC Resources will ``significantly increase'' uranium exports to China in the next 10 to 15 years, Michael Nossal, executive general manager of business strategy & development at the former company said April 20.
Northern Territory
Rio Tinto's Energy Resources of Australia Ltd. unit is the country's biggest uranium exporter.
The government also announced last week that it would consider approving uranium projects that met environmental standards and were accepted by indigenous landowners in the Northern Territory, which has A$12 billion of deposits.
``Both these developments are positive sign from the government for uranium producers,'' ABN Amro's Boyd-Clark said.
Shares of Energy Resources, Compass Resources NL, Deep Yellow Ltd. and Marathon Resources Ltd. all rose after the government's announcement Aug. 5.
Uranium may trade between $20 and $30 a pound until 2008, a level that may encourage the development of new mines, Citigroup Inc. said July 7.