A growing number of Western Australian mining companies are banking on a political change in opinion over the development of the nation’s substantial uranium resources.
Until recently a 23-year-old Federal Government policy limiting the number of Australian uranium mines to three, combined with depressed uranium prices and negative public opinion, has been a significant drogue on Australian uranium exploration.
However, during the past 12 months junior explorers have been dusting off old uranium prospects and actively seeking out new ones as uranium prices have risen above the $US20 a pound mark for the first time in two decades and the Coalition Government has indicated a relaxation of previous strict uranium mining policy.
Subiaco-based junior Paladin Resources can almost stand alone as one that has reaped the reward for its dogged perusal of uranium projects during its 11-year history.
Paladin’s share price has leapt from 1 cent in November 2003 to 86 cents on the back of several uranium plays it controls – the most advanced of which is the Langer Heinrich Uranium Project in Namibia.
However, on the local front Paladin also controls the West Pilbara Manyigee project and the Oobagooma project in the West Kimberley.
In WA the Labor Government is opposed to uranium mining, however, as the State election approaches opinion is growing that a Coalition Government could take a different view.
The Gallop Government has ruled that all mining leases granted after 2002 contain clauses that specifically exclude uranium from minerals that can be mined.
A spokeswoman for Coalition leader Colin Barnett said the Coalition policy was for all uranium mining proposals to be examined on their merits.
West Perth-based Jindalee Resources, with five exploration licences with uranium potential in WA and one in the Northern Territory, is one company banking on change at some stage.
Jindalee managing director Lindsay Dudfield said the company was looking to spin out its uranium assets, which are held in subsidiary Energy Metals and list it on the Australian Stock Exchange in the next few months.
Mr Dudfield said given the world demand for uranium and changing environmental opinion it was inevitable the political situation in WA would eventually have to change.
“We have been looking at the uranium market closely for the past 10 months and when you start looking into it it’s amazing how Australian politics don’t make sense,” he said.
He said Canadian mining companies were a long way ahead of Australia in terms of plugging the demand for uranium.
Giralia Resources managing director Mike Joyce echoed Mr Dudfield’s comments.
“It doesn’t make economic sense to have projects such as Yeelirrie and Kintyre sitting on the ground when there is such demand for uranium,” he said.
West Perth-based Giralia Resources has an interest in one of Australia’s more prospective uranium plays, the Lake Frome project.
Located in South Australia, where two of Australia’s three uranium mines are situated – WMC Resource’s Olympic Dam and Heathgate’s Beverly mine – Lake Frome abuts the Beverly mine and is 75 per cent controlled by Heathgate.
Importantly, Heathgate has a licence to export uranium at Beverly.
Mr Joyce also said Giralia had applied for four properties with uranium potential in Queensland as well as one in WA.
He said the company had no immediate plans for the properties in the short-term, however, they may consider whatever creates the most shareholder value down the track.
Gold producer Agincourt Resources is looking to realise shareholder value from its uranium prospects more immediately. It holds the Centipede uranium project in WA.
Agincourt managing director Tim Sugden said the company was unlikely to spend any money on the assets unless there was a change in Government policy and wanted to remain focused on its core activity producing gold.
New float Scimitar Resources has also added uranium to its gold and base metals focus.
The recapitalised Deep Yellow recently acquired two uranium exploration properties from Paladin.
