U3O8 Uranium.

[stolwyk]

Howard Urges Australian States to End Uranium Bans (Update5)

By Gemma Daley

Dec. 29 (Bloomberg) -- Prime Minister John Howard urged Australia's regional governments to end bans on new uranium mines that prevent the nation from tapping soaring demand for the reactor fuel.

The nuclear power boom provided a ``timely opportunity,'' Howard said today, releasing a government report that supported an end to the bans, enrichment of the metal for use in reactors and construction of as many as 25 atomic plants in the country.

Australia, with 40 percent of the world's uranium's reserves, contributes just 23 percent of global output because miners such as BHP Billiton have been prevented from opening new pits. The bans were introduced in 1983 by the Labor Party, which lost office in 1996 to Howard's coalition government. Labor controls all eight state and territory governments and the party's policy will be reconsidered at a conference in April.

``I call upon state governments to end their bans on uranium mining and exploration, which stand in the way of investment, jobs and exports,'' Howard said in a statement e-mailed to Bloomberg News.

Prices for uranium, which is used to power plants that supply 16 percent of the world's electricity, have surged almost fourfold in the past three years. Higher coal, gas and oil prices and pressure to cut greenhouse gas emissions, blamed for global warming, are driving increased use of nuclear power.

Labor Disagreement

Kevin Rudd, leader of the opposition Labor Party at federal level, favors scrapping the prohibition on uranium expansion, while regional leaders such as Western Australia Premier Alan Carpenter want to keep it. South Australia's Premier Mike Rann supports the expansion of uranium mining, while Queensland Premier Peter Beattie has said he will abide by the decision due to be taken at the party's conference in April, ABN Amro Holding NV said in a Dec. 19 report.

The party's position on uranium will be decided before the state and territory leaders meet Howard, 67, during a twice- yearly Council of Australian Governments meeting in Canberra.

Australia may start using nuclear power within 15 years and build as many as 25 reactors by 2020 to meet one-third of the nation's energy, according to the uranium report ordered by the government and produced by a team led by former Telstra Corp. chief executive Ziggy Switkowski.

Australia's federal government controls the sale of uranium while state and territory governments administer mining permits. Mining of the metal is limited to three sites: BHP Billiton's Olympic Dam mine in South Australia; Energy Resources of Australia Ltd.'s Ranger mine in the Northern Territory; and Heathgate Resources' Beverley mine in South Australia. Heathgate is owned by San Diego-based General Atomics.

Miners to Benefit

A change in policy on uranium would benefit mining companies such as SXR Uranium One Inc. with advanced projects in South Australia and Queensland states, ABN Amro's report said.

``We believe a change in policy would lead to a re-rating of the Australian uranium explorers and potentially to further consolidation of the sector,'' ABN said in the report. ``In our view, those explorers with advanced projects will be in the best position to benefit from a potential change in policy.''

SXR Uranium One was in September awarded a license by the South Australian government's environmental agency to commercially mine the Honeymoon deposit. The company, based in Toronto, said in August it decided to go ahead with the project.

PepinNini Minerals Ltd., based in Sydney, has a potential project in South Australia, while Canada's Mega Uranium Ltd. and Perth-based Summit Resources Ltd. are among companies with potential projects in Queensland, ABN said.

Summit Gains

Easing the uranium mining ban ``would be great for a company like Summit,'' said Peter Schiff, chief executive officer of Euro Pacific Capital, which manages about $400 million including Summit shares.

Summit, which said on Oct

[stolwyk]

FAR EAST CAPITAL:

U Companies

http://www.wildhorse.com.au/documents/219.pdf

[Skol]

I can't help thinking that some of the U308 prices are getting ahead of themselves and that we'll soon be seeing the 'Blood on the Floor' thread. Most of these companies are years away from seeing any yellow stuff and one of the biggest producers, ERA, is still locked in at about $10/lb until 2008.

[Dratoz]

Good article, Stolwyk, although some figures in the article are clearly incorrect. Mainly those related to U resources. For instance, I do not believe DYL has that much U, and MTN has much more than what has been reported. Also a couple other inconsistencies, but the overall message is quite interesting and clear.
Cheers,
Dratoz

[shasta]

Was a good article to read thanks Stolwyk.

Dratoz, why dont you think DYL has that much Uranium? (Resource grades of 260 & 360 ppm)

The article states it has sub economic grades & will need to deliver better quality resource at some stage...

How much do you think they have?

I like there move into Namibia & see that as the reason they are considered an aggressive "U" company.

Alot of promise, yes, & yet to deliver but im happy to hold while PDN still do.

I see SRZ got a good mention in there too, i posted that i couldnt find any threads on ST on them & if anyone else held them etc.

Have picked both for the ASX comp & hold DYL.

[Sharp737]

Yes, that is a good article

http://www.wildhorse.com.au/documents/219.pdf

And I hope that Paladin don't try and take Summit over!!

Tell you why....if things continue as they are going with

1. Uranium prices going ballistic with the ever increasing world demand

2. Summits uranium resources just exploding

3. Summits other resources like their Iron project etc

We could be looking at....what? Say in a few years time....$100 per share?? Now that's being really wildly optimistic but...

Sharp

[tricha]

Thanks for this Gerry, I might owe you a beer or two, well worth it's weight in gold, saved me a mile of leg work, one of it's best picks was Glengarry Resources, yes, a U company for only 7.8 cents.

Cheers [B)][}]

Posted by Gerry! []

FAR EAST CAPITAL:

U Companies

http://www.wildhorse.com.au/documents/219.pdf

[Dratoz]

Hello Shasta,

I am more of a MTN follower than DYL, although DYL is also on my radar. I will explain why I thought DYL data was misreported.
The first Potential Producers table provides data for grades >0.05% (the note below the table), and has DYL @ 50.7 mill lbs U3O8. I did not think they had that much in the >0.05% category. The table on the next page has the same total of 50.7 mill lbs U3O8 with grades of 0.036% and 0.026%. I believe the first table is incorrect.

On the subject of MTN, the table of Potential Producers has MTN @ 5mln lbs U3O8, whereas MTN has much more than that. Maybe there is a zero missing somewhere? The data in the second table appears more correct. The article also expresses several other incorrect views and doubts about MTN U holdings which are unjustifiable. MTN has a JORC compliant resource calculated by two independent and highly reputable sources. I will close at that, as this is not a thread to “promote” any particular stock. I do hold MTN.

Regards and good luck with your investments,
Dratoz

[Zephyrus]

quote:Originally posted by tricha

Thanks for this Gerry, I might owe you a beer or two, well worth it's weight in gold, saved me a mile of leg work, one of it's best picks was Glengarry Resources, yes, a U company for only 7.8 cents.

Cheers [B)][}]

Posted by Gerry! []

FAR EAST CAPITAL:

U Companies

http://www.wildhorse.com.au/documents/219.pdf

Yes, a very useful report. Thanks Gerry.

Another one by Mr Grigor from the Monaro Mining website

http://www.monaromining.com/articles...raliaAug06.pdf

Anyone following Monaro (MRO)? Their main focus is in Kyrgyzstan. Maybe some similarities to Uran, which has had a great run recently. Any views on Mr Grigor & the rest of the team?

[shasta]

Thanks Dratoz

Will have a look into MTN & assess them directly compared to DYL, & try & work out what they do have & keep them on watch.

Hasn't DYL already got a JORC compliant resource as well, not sure if you telling me MTN has as well, or DYL hasn't.

DYL is my first "U" stock & i've been looking into others.