Cameco, Paladin win rights to NT uranium deposits
AAP
WA Business News
Uranium miner Paladin Energy Ltd has teamed up with Canadian company Cameco to win the right to explore two highly sought after uranium deposits in the Northern Territory.
The Angela and Pamela sites, south of Alice Springs, are two of 18 recently released from reservation of occupation by the Territory government.
They were considered highly prospective by a record number of 37 local and international companies which applied for exploration rights, including Energy Resources of Australia, Uranium Equities and U308.
"There has been huge interest in terms of winning the rights," said NT Chief Minister Paul Henderson, who announced the decision today.
Paladin also announced today plans to raise up to US$325 million through an issue of convertible bonds, to fund the expansion of its production, exploration and uranium marketing activities.
Mr Henderson said both Cameco and Paladin were already operational in the Northern Territory and called them "good Territory corporate citizens".
"They have existing supplies, they know the Territory, they work well with the Territory," he told reporters in Darwin.
Mr Henderson said exploration and mining of the site had the potential to bring billions of dollars worth of economic opportunity and jobs for the Territory.
The deposits have been known about since the 1970s when the price of uranium was low.
It is now estimated to contain more than 12,000 tonnes of uranium oxide worth up to $2.5 billion.
"If the Angela and Pamela prospects live up to their potential, their value could run to the billions, creating years of economic benefit for Central Australia," Mr Henderson said.
The Angela and Pamela sites were the subject of an unusual court case after Perth businessman Norm McCleary pegged a midnight stake on the land.
He claimed that he had outfoxed at least six global mining corporations which had emailed their applications to the government the day crown land reservations on the deposit ended.
But in February, the NT Supreme Court dismissed his case, saying Mr McCleary had sought to exploit "a loophole in the scheme" to obtain an advantage over others who had an interest in the mineral potential of the land.
Asked if the court proceedings had delayed today's announcement, NT Mines Minister Chris Natt replied: "It's fair to say that it did set the process back a little bit.
"We had to address the McCleary issues as part of his midnight pegging."
Mr Natt said mineral exploration injected more than $100 million into the Territory economy each year, up from $80 million in 2001.
Cameco/Paladin's licence application will now progress through the usual administrative procedures under the Commonwealth Mining Act, which could take up to six years.
The Angela and Pamela sites, south of Alice Springs, are two of 18 recently released from reservation of occupation by the Territory government.
They were considered highly prospective by a record number of 37 local and international companies which applied for exploration rights, including Energy Resources of Australia, Uranium Equities and U308.
"There has been huge interest in terms of winning the rights," said NT Chief Minister Paul Henderson, who announced the decision today.
Paladin also announced today plans to raise up to US$325 million through an issue of convertible bonds, to fund the expansion of its production, exploration and uranium marketing activities.
Mr Henderson said both Cameco and Paladin were already operational in the Northern Territory and called them "good Territory corporate citizens".
"They have existing supplies, they know the Territory, they work well with the Territory," he told reporters in Darwin.
Mr Henderson said exploration and mining of the site had the potential to bring billions of dollars worth of economic opportunity and jobs for the Territory.
The deposits have been known about since the 1970s when the price of uranium was low.
It is now estimated to contain more than 12,000 tonnes of uranium oxide worth up to $2.5 billion.
"If the Angela and Pamela prospects live up to their potential, their value could run to the billions, creating years of economic benefit for Central Australia," Mr Henderson said.
The Angela and Pamela sites were the subject of an unusual court case after Perth businessman Norm McCleary pegged a midnight stake on the land.
He claimed that he had outfoxed at least six global mining corporations which had emailed their applications to the government the day crown land reservations on the deposit ended.
But in February, the NT Supreme Court dismissed his case, saying Mr McCleary had sought to exploit "a loophole in the scheme" to obtain an advantage over others who had an interest in the mineral potential of the land.
Asked if the court proceedings had delayed today's announcement, NT Mines Minister Chris Natt replied: "It's fair to say that it did set the process back a little bit.
"We had to address the McCleary issues as part of his midnight pegging."
Mr Natt said mineral exploration injected more than $100 million into the Territory economy each year, up from $80 million in 2001.
Cameco/Paladin's licence application will now progress through the usual administrative procedures under the Commonwealth Mining Act, which could take up to six years.