Tuesday 28 February 2006
ABC NT Country Hour

Report by Adrienne Francis

There are at least 30 uranium companies involved in the Territory's uranium exploration industry.

This number has boomed in the last two years, from 5 companies (2 years ago) to 14 companies (1 year ago). So what has prompted this huge change? Dr Ron Matthews of Cameco, provided Country Hour with an explanation. The Canadian mining giant, Cameco, is the second largest uranium explorer in the NT and has been involved in the NT for a decade.

"It's purely supply and demand, and the realisation that there will be a shortage of product and this has driven the price up and encouraged exploration. As of yesterday, uranium on the stock market was approaching around $US38 or around $30 per pound."

Cameco's land interests are under development in Arnhem land, in the South Alligator Rivers uranium field, relatively near the existing Ranger uranium mine and Jabiluka (and abutting Kakadu). Dr Matthews says the company has faced some challenges.

"Arnhem land is a dry season only access region, we will be out there in May this year, and work of two camps. We work on Aboriginal land so we need to respect the country and work with traditional owners."

Dr Matthews says the search for uranium involves some aerial magnetic survey. Cameco has so far invested $50 million in the NT, and intends to spend a further $5.5 million this year to make the company the largest explorer for uranium in the NT.

"Cameco is a significant player in the NT. We are awaiting approvals on aboriginal freehold land. This takes some time and we work with the land councils to seek their approval."

A NT Country Hour listener provided the following question. "Uranium mining is expensive, building power plants is expensive, disposing of waste is expensive, rehabilitating mine sites is expensive. Is it really a viable form of energy production, simply economically, much less the environmental cost?"

Dr Matthews says uranium is a viable alternative to other energy sources.

"The capital costs are very high, but they are coming down with technological advancements. The cost of the product is low. Around the world it is cheaper in many countries than any other sources of energy."

Other Country Hour listeners state that more energy goes into building a plant and through the life of the plant than the power station actually produces, as part of the online guest-book. However Dr Matthews denies this is true.

"The energy that goes in over 40 years is approximately 1-3% of what goes in so you are getting huge output for very little input."