Saturday, 28 April, 2007

The Border Mail

RIO Tinto, the world's second-largest uranium miner, yesterday called for sensible debate on the mineral as the Labor Party prepared to vote on plans to overturn its 25-year policy to ban new uranium mines.

Chief executive Leigh Clifford said uranium was back on the global agenda after years in the wilderness and that the resources giant would increase its investment in the now hot commodity, which fuels 'green' nuclear power.

"Around the world people are talking about new nuclear stations," he said.

"The Rio Tinto Group ... is really in an excellent position to significantly expand our production capacity."

Rio has exposure to the sector through its stake in the Rossing mine in Namibia and Energy Resources of Australia, which operates the Ranger mine in the Northern Territory.

A surging uranium price, which has more than doubled over the past 12 months, has also helped to renew interest in yellowcake.

Labor Party members this weekend will vote in Sydney on a push to end the party's 25-year ban on new uranium mines, with many members including Queensland Premier Peter Beattie and his WA counterpart Alan Carpenter opposed to the change.

Australia has 40 per cent of the world's known uranium resources but only three mines.

"I realise it is probably the subject of discussion somewhere else in Australia at the moment," Mr Clifford observed in Perth.

"I'm hopeful of sensible debate taking place.

"We'll be looking to expand our capacity and I think there is a real opportunity for Australia and Western Australia to participate in that."

Elsewhere, chairman Paul Skinner said Rio was keeping an eye out for mergers, acquisitions and alliances but wouldn't offer specifics.

He also said the global economy would remain strong for the rest of 2007 and into 2008.

"We certainly remain very positive," he said.