18/11/2008 - 11:40

Uranium stocks climb, lobby groups happy

18/11/2008 - 11:40

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Western Australia's uranium players have jumped up in trading today after the state government yesterday lifted a ban on uranium mining, a move strongly backed by WA business lobby groups.

Uranium stocks climb, lobby groups happy

Western Australia's uranium players have jumped up in trading today after the state government yesterday lifted a ban on uranium mining, a move strongly backed by WA business lobby groups.

Shares in uranium firm Paladin Energy, based in Subiaco, rose 13 cents or 5.81 per cent to $2.55 at 1330 AEST on the news, while West Perth-based Encounter Resources was up 5 cents or 71.43 per cent to 12 cents.

Leederville-based Bannerman Resources was up 14.5 cents or 40.28 per cent to 50.5 cents.

Energy and Minerals Australia was up 2 cents or 10.53 per cent to 21 cents after reaching a high of 25 cents per share and Adelaide-based based Toro Energy, EMA's partner in building WA's first uranium mine, was up 1.5 cents or 12.5 per cent to 13.5 cents.

Also higher was Uranex, behind the 11 million pound Thatcher Soak project , up 2 cents or 13.33 per cent to 17 cents.

Applecross-based uranium exploration company, U3O8 had also increased its value by 3 cents, or 27.27 per cent to 14 cents per share.

These rising share prices are a result of the government's official lifting of the ban on uranium mining, a ban that was kept firmly in place by the previous Labor government.

Association of Mining and Exploration Companies acting executive director, Sonia Webster congratulated the Premier and Mines Minister Norman Moore and said the Cabinet decision would start a lucrative long-term revenue stream that will deliver a net benefit to all Western Australians for generations to come.

"The decision to develop a uranium mining industry now will ensure that WA is ready to supply to the many countries with a growing dependence on the element for efficient, clean energy," Ms Webster said.

"While we recognise that some people are still anxious about uranium and its transport, the fact is that it has been mined and shipped in other parts of Australia for decades without incident."

WA's peak business lobby group, the Chamber of Commerce and Industry Western Australia, similarly supported the move by the state government.

CCI executive director industry policy, Trevor Lovelle said the decision comes at a time when governments throughout the world are looking to stimulate economic growth and business investment in response to the current global economic uncertainty.

"Encouraging new business and investment opportunities in the resources sector will further diversify the local economy, which will have the added benefit of better insulating the state from any significant global downturn," Mr Lovelle said in a statement.

Mr Lovelle said the CCIWA has long called for the ban to be lifted, arguing that provided relevant economic, environmental and social requirements are met, uranium mining should be treated no differently from the mining and export of any other commodity.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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