Monday, 2 July, 2007

by Paul Maley
The Australian

LABOR'S junking of its no-new-mines policy has contributed to a dramatic expansion of the uranium industry, with spending on exploration set to double.

The Australian Uranium Association says a total of $76.6 million has been spent on uranium exploration since June 2006, compared with $56.1 million for 2005-06.

AUA executive director Michael Angwin said that while high prices and an increased global demand for energy were the main structural factors driving growth, there was no doubt the ALP's policy reversal had also contributed by ending Australia's "ambiguous" relationship with the controversial fuel.

"We now have the major political parties both supporting the expansion of uranium mining with the effect of the change in ALP policy having disposed of the anti-uranium case," he said.

Mr Angwin said fears about climate change as well as the energy needs of a rising global population and increased prosperity were driving demand.

He said that by 2030, there would be a doubling in demand for electricity and a 50 per cent boost in uranium demand.

In 2003-04, $10.5 million was spent on exploration, compared with $20.7 million for 2004-05 and $56.1 million for 2005-06.

The spike was being driven by the high spot price for uranium, now more than $130 per pound, which Mr Angwin said was 13-14 times greater than it was five years ago.

The director of the Northern Territory Geological Survey, Ian Scrimgeour, said there had been a boom in uranium prospecting in the territory, home to one of Australia's three uranium mines, the Ranger mine.

The other two, the Olympic Dam and Beverely mines, are in South Australia.