Northern Territory Govt Backflips On Uranium Mine

Published on Wednesday Sept 29 2010

The Northern Territory government has withdrawn its support for the development of a uranium mine near Alice Springs two weeks out from a local by-election.


Environmental groups have welcomed the government's opposition to the uranium mine at Angela Pamela, about 20km south of Alice Springs, but question the timing of the announcement.


A by-election will be held in the reasonably safe Country Liberal Alice Springs seat of Araluen on October 9, following the retirement of opposition deputy leader Jodeen Carney.


NT chief minister Paul Henderson said the decision to oppose the mine, having previously granted an exploration licence to Cameco, was due to strong community opposition to the project.


'Labor's Araluen candidate, Adam Findlay, has also been receiving this feedback very strongly while doorknocking in the electorate,' Mr Henderson said in a statement released on Tuesday.


'We also acknowledge Alice Springs is a tourism centre and a mine in such close proximity to the town has the very real potential to adversely affect the tourism market and the Alice Springs economy.


'I reiterate this decision does not mean the Northern Territory Government is opposed to the establishment of new uranium mines elsewhere in the Territory.'


Mr Henderson acknowledged that final approval of a mining lease at Angela Pamela was the responsibility of the federal government, and that the commonwealth had the power to override any decision made by the territory government.


The Australian Conservation Foundation's Dave Sweeney told AAP there was nothing like a bi-election to make the federal and NT governments listen to the concerns of the community.


But he welcomed the announcement, adding that the NT government's change of heart would at least be a 'significant procedural and political road block'.


Australian Greens uranium spokesman Scott Ludlam urged the federal government not to override the wishes of the NT.


'I sincerely hope the Country Liberals will make the sensible decision to support the wishes of the Alice Springs community and join in opposing the mine,' Senator Ludlam said in a statement.

Australian Government Pledges To Further Expand Australia's Uranium Industry

Published on Friday Sept 24 2010

Resources Minister Martin Ferguson's pledge to further expand Australia's uranium industry is seen by conservationists as a barefaced call to the markets, at the expense of the environment and public health.

Mr Ferguson on Wednesday told the Australian Financial Review newspaper he would "make sure" there was progress on new mines in Western Australia and the Northern Territory in the life of the current parliament.

He also sought to distance himself from the Australian Greens, who supported Labor to form a minority government.

Mr Ferguson denied Labor's refusal to consider nuclear energy was because of the relationship, and attacked the Greens' approach to an emissions trading scheme (ETS) during the last parliament.

Greens senator Scott Ludlam said Mr Ferguson's determination to override environmental processes had him putting investors ahead of the Australian public.

"These processes catch not just risks to the environment but risks during transport, to public health, occupational health and safety, and heritage," he told AAP.

"The minister is quite brazenly telling the market these things will be shouldered aside."

Australian Conservation Foundation (ACF) nuclear campaigner Dave Sweeney said the vow to ramp-up mining contradicted Labor's election promise to preserve the Koongarra area of Kakadu from mining, due to its environmental and cultural importance.

The coalition matched the promise.

Mr Sweeney said it was an admission of the widespread opposition to mining uranium, which he calls "21st century asbestos".

"There is continuing and very strong levels of community concern and indigenous concern and opposition," he said.

He said the minister should focus on improving health and safety at three existing mines - Ranger in the Northern Territory, and Beverley and Olympic Dam in South Australia - before considering expansion.

Meanwhile, conservationists are pleased they have bought more time on the controversial Muckaty waste dump.

The legislation for the dump, which would solve Australia's waste storage problem to the detriment of some traditional owners who oppose the Northern Territory development, must now pass a trickier Lower House.

Traditional owners who oppose the dump have also started Federal Court action.

Senator Ludlam says it's now "far from a done deal".

Mr Sweeney says he's glad the pause button has been hit, and hopes the project will be stopped.

"It was a bad idea born in desperation under the Howard government and kept alive by minister Ferguson," he said.

Australian Government Pledges To Further Expand Australia's Uranium Industry

Published on Friday Sept 24 2010

Resources Minister Martin Ferguson's pledge to further expand Australia's uranium industry is seen by conservationists as a barefaced call to the markets, at the expense of the environment and public health.

Mr Ferguson on Wednesday told the Australian Financial Review newspaper he would "make sure" there was progress on new mines in Western Australia and the Northern Territory in the life of the current parliament.

He also sought to distance himself from the Australian Greens, who supported Labor to form a minority government.

Mr Ferguson denied Labor's refusal to consider nuclear energy was because of the relationship, and attacked the Greens' approach to an emissions trading scheme (ETS) during the last parliament.

Greens senator Scott Ludlam said Mr Ferguson's determination to override environmental processes had him putting investors ahead of the Australian public.

"These processes catch not just risks to the environment but risks during transport, to public health, occupational health and safety, and heritage," he told AAP.

"The minister is quite brazenly telling the market these things will be shouldered aside."

Australian Conservation Foundation (ACF) nuclear campaigner Dave Sweeney said the vow to ramp-up mining contradicted Labor's election promise to preserve the Koongarra area of Kakadu from mining, due to its environmental and cultural importance.

The coalition matched the promise.

Mr Sweeney said it was an admission of the widespread opposition to mining uranium, which he calls "21st century asbestos".

"There is continuing and very strong levels of community concern and indigenous concern and opposition," he said.

He said the minister should focus on improving health and safety at three existing mines - Ranger in the Northern Territory, and Beverley and Olympic Dam in South Australia - before considering expansion.

Meanwhile, conservationists are pleased they have bought more time on the controversial Muckaty waste dump.

The legislation for the dump, which would solve Australia's waste storage problem to the detriment of some traditional owners who oppose the Northern Territory development, must now pass a trickier Lower House.

Traditional owners who oppose the dump have also started Federal Court action.

Senator Ludlam says it's now "far from a done deal".

Mr Sweeney says he's glad the pause button has been hit, and hopes the project will be stopped.

"It was a bad idea born in desperation under the Howard government and kept alive by minister Ferguson," he said.

Australian Government Pledges To Further Expand Australia's Uranium Industry

Published on Friday Sept 24 2010

Resources Minister Martin Ferguson's pledge to further expand Australia's uranium industry is seen by conservationists as a barefaced call to the markets, at the expense of the environment and public health.

Mr Ferguson on Wednesday told the Australian Financial Review newspaper he would "make sure" there was progress on new mines in Western Australia and the Northern Territory in the life of the current parliament.

He also sought to distance himself from the Australian Greens, who supported Labor to form a minority government.

Mr Ferguson denied Labor's refusal to consider nuclear energy was because of the relationship, and attacked the Greens' approach to an emissions trading scheme (ETS) during the last parliament.

Greens senator Scott Ludlam said Mr Ferguson's determination to override environmental processes had him putting investors ahead of the Australian public.

"These processes catch not just risks to the environment but risks during transport, to public health, occupational health and safety, and heritage," he told AAP.

"The minister is quite brazenly telling the market these things will be shouldered aside."

Australian Conservation Foundation (ACF) nuclear campaigner Dave Sweeney said the vow to ramp-up mining contradicted Labor's election promise to preserve the Koongarra area of Kakadu from mining, due to its environmental and cultural importance.

The coalition matched the promise.

Mr Sweeney said it was an admission of the widespread opposition to mining uranium, which he calls "21st century asbestos".

"There is continuing and very strong levels of community concern and indigenous concern and opposition," he said.

He said the minister should focus on improving health and safety at three existing mines - Ranger in the Northern Territory, and Beverley and Olympic Dam in South Australia - before considering expansion.

Meanwhile, conservationists are pleased they have bought more time on the controversial Muckaty waste dump.

The legislation for the dump, which would solve Australia's waste storage problem to the detriment of some traditional owners who oppose the Northern Territory development, must now pass a trickier Lower House.

Traditional owners who oppose the dump have also started Federal Court action.

Senator Ludlam says it's now "far from a done deal".

Mr Sweeney says he's glad the pause button has been hit, and hopes the project will be stopped.

"It was a bad idea born in desperation under the Howard government and kept alive by minister Ferguson," he said.

Uranium Spot Prices at 10-Month High

Uranium is drawing interest from investors including hedge funds after prices for the nuclear fuel climbed to the highest level in more than 10 months, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery remained at $48 a pound for a third week, Roswell, Georgia-based UxC said yesterday in a report. Prices are up 19 percent from this year’s low in March.

Hedge funds also were in the uranium market six years ago, UxC’s President, Jeff Combs, said yesterday by phone.

At that time, prices of the radioactive element were starting a surge in which they would jump more than fivefold in the three years through 2006. Uranium almost doubled again in 2007, reaching a record $136 a pound in June of that year.

“Interest from hedge funds and investors has started to re-emerge,” Combs said. “We did see it in 2004. Investors and hedge funds were getting interested, and they were ahead of the curve then. The question now is, is this the next up leg in the market?”

Price gains sped up after 2004 as governments around the world promoted nuclear energy in a bid to reduce dependence on fossil-fuel imports and curb emissions. Increased Chinese and Indian nuclear-power usage will help to maintain “strong” fuel demand, Energy Resources of Australia Ltd., the uranium producer controlled by Rio Tinto Group, said in May of this year.

Better Supply

The main difference compared with six years ago is improved supply of uranium, according to Combs. Output more than quadrupled in Kazakhstan, the world’s biggest producer, from 2003 to last year, according to figures from the World Nuclear Association. Production was little changed in 2009 in second- ranking Canada compared with 2003, WNA figures show.

“A key question is what the Kazakhs will do with respect to production in the future,” Combs said.

Kazatomprom, the state-owned Kazakh nuclear company, aims to raise uranium production by 29 percent to about 18,000 metric tons this year, Vice President Galimzan Pirmatov said on Sept. 16. Planned expansion may boost annual output to 25,000 tons by 2016, he said.

Cameco Buys Uranium as Investment to Capitalize on Price Slump

Published on Thursday Sept 16 2010

Cameco Corp., the world’s second- largest producer of uranium, bought the nuclear fuel on the immediate-delivery market this year as an investment to take advantage of a price drop.

Uranium-oxide concentrate fell to a 2010 low of $40.50 a pound in the spot market in the week through March 1, a drop of 9 percent from last year’s close, according to data from Roswell, Georgia-based Ux Consulting. Prices have since climbed to $48, the highest level in more than 10 months.

“There were a number of times this year when we thought uranium was a good investment to buy, and that is what we did,” George Assie, Cameco’s senior vice-president of marketing and business development, said in an interview in London yesterday. “At times we’ll see material in the market that we think is very attractively priced, so we will purchase.”

Price gains in recent months reflect uranium’s positive fundamentals, Assie said. Fifty-nine nuclear reactors are being built to add to the 440 operating globally, data from the World Nuclear Association shows. An accord under which uranium from dismantled Russian weapons is turned into fuel for U.S. nuclear power plants is scheduled to expire in 2013.

The end of the U.S.-Russian Highly Enriched Uranium Purchase Agreement will shrink supply of the metal, according to Assie. Saskatoon, Saskatchewan-based Cameco has yet to “rule out” buying more uranium on the spot market, he said.

Production Goal

“We think the price is on an upward trend,” Assie said. “We have a fair degree of confidence we can place it into contracts at a higher price,” he said of spot uranium purchased by the company.

Cameco markets between 6 million and 7 million pounds of uranium a year as part of the HEU Purchase Agreement, which will be replaced by an increase in its own output, according to Assie. The company aims to double last year’s production of 21 million pounds by 2018, he said.

The Cigar Lake joint venture being developed in Canada will be key to reaching the production goal, Assie said. The site contains the world’s largest undeveloped high-grade uranium deposit, Cameco’s website shows. Paris-based Areva SA, Idemitsu Canada Resources Ltd. and Tepco Resources Inc. are the company’s partners.

Production at the venture is expected to start in the middle of 2013, rising to full output of 18 million pounds in 2017, according to Assie. Cameco’s share would be 9 million pounds, he said.

Purchases by Banks

Investment banks also were buyers of spot uranium this year, according to the executive.

“The banks will certainly step in when they see prices are soft,” Assie said. “On occasion when we bought material, it has turned out it has been them on the other side of the transaction.”

Global Rare Earth Element Supply Shortage Looms By 2012

Published on Tuesday Sept 14 2010

Circled above are the 17 Elements that make up the Rare Earth Table

It's the bubble you've probably never heard of: The rare earth bubble. And it's due to pop in 2012, potentially devastating the industries of western nations that depend on these rare elements.

What industries are those?

The automobile industry uses tens of thousands of tons of rare earth elements each year, and advanced military technology depends on these elements, too. Lots of "green" technologies depend on them, including wind turbines, low-energy light bulbs and hybrid car batteries. In fact, much of western civilization depends on rare earth elements such as terbium, lanthanum andneodymium.

So what's the problem with these rare elements? 97 percent of the world's supply comes from mines in China, and China is prepared to simply stop exporting these strategic elements to the rest of the world by 2010.

If that happens, the western world will be crippled by the collapse of available rare earth elements. Manufacturing of everything from computers and electronics to farm machinery will grind to a halt. Electronics will disappear from the shelves and prices for manufactured goods that depend on these rare elements will skyrocket.




These 17 rare earth elements (REE) -- all of which are metals -- are strategic resourcesupon which entire nations are built. In many ways, they are similar to rubber -- a resource so valuable and important to the world that many experts call it the "fourth most important natural resource in the world," right after water, steel and oil. Without rubber, you couldn't drive your car to work or water your lawn. Many medical technologies would cease to work and virtually all commercial construction would grind to a halt.

Many of the strategic battles fought in World War II were fought, in fact, over control of rubber, most of which now comes through Singapore and its surrounding regions (Malaysia and Indonesia).

Global shortage of Rare Earth Elements coming...
Now, by threatening to cut off the world's supply of rare earth elements, China appears to be attempting to monopolize this extremely important strategic resource. According to information received by The Independent, by 2012 China may cease all exports of rare earth elements, reserving them for its own economic expansion.

An article in that paper quotes REE expert Jack Lifton as saying, "A real crunch is coming. In America, Britain and elsewhere we have not yet woken up to the fact that there is an urgent need to secure the supply of rare earths from sources outside China."

And yet virtually no one has heard of this problem! People are familiar with peak oil, global warming, ocean acidification, the national debt and the depletion of fossil water, but very few are aware of the looming crisis in rare metals... upon which much of western civilization rests.

For those who still aren't convinced this is a big deal, consider this: Without rare earth elements, we would have no iPhones. Yeah, I know. That's a disaster, huh?

We would have no fibre optic cables, either. No X-ray machines, no car stereos and no high-tech missile guidance systems for the military. And here's the real kicker: No electric motors.

Demand outstrips supply

The problem with the supply of rare earth elements is that demand has skyrocketed over the last decade from 40,000 tons to 120,000 tons. Meanwhile, China has been cutting its exports. Now, it only exports about 30,000 tons a year -- only one-fourth of the demand the world needs.

In order to build more "green" technologies, the world will need 200,000 tons of rare earth elements by 2014, predicts The Independent. Yet China now threatens to drop exports to exactly zero tons by 2012.

It isn't hard to do the math on this: Without China's exports, the western world will quickly run out of rare earth elements.

Kiss your "green" wind-turbines good-bye. And your Toyota Prius production lines, too. No more iPhones and iPods either. Without these rare earth elements, entire industries grind to a halt.

Can we mine it elsewhere?

China isn't the only geographic region where these rare earth elements are found, but constructing mines to pull these elements out of the ground takes many years. Some mines are under construction right now in other countries that could help fill the demand for REEs, but making them operational is "five to ten years away," says Lifton.

That means these other mines won't really be operational until 2015 - 2020. Meanwhile, China could cut off its supply in 2012. That leaves a 3-7 year gap in which these rare earth elements will be in disastrously short supply.

This brings up a couple of very important realizations related to investments:

It is almost certain that the prices for rare earth elements will skyrocket over the next 2 - 5 years. This creates a huge investment opportunity for people willing to take a risk and bet their money on rising prices of these metals.

There's another big investment opportunity here, too: Recycling rare earth elements. As prices leap higher, it will become more economically feasible to harvest rare earth elements out of garbage dumps and landfills where people are discarding electronics such as motors, computers, sound systems and other such items.

Some smart entrepreneur will no doubt make a fortune by setting up and operating a rare earth element reclamation operation of some kind. These elements, after all, aren't destroyed when they're thrown away. They sit around in the trash for eons, just waiting to be reclaimed and re-used.

Lead, for example, is a metal that is successfully recycled today. Something like 85% of all the lead used in America today is reclaimed out of lead-acid batteries and other similar devices. If similar programs could be initiated for the rare metals, we could go a long way towards meeting society's demand for these elements without having to keep mining them out of the ground.

Because let's face it: Mining these rare earth elements is a very DIRTY business. That's part of the contradiction in "green" technologies, by the way: To manufacture them, you need rare metals mined out of ecologically disastrous operations in China. It's the (literal) "dirty little secret" of the green industry. All these wind turbines, solar panels, hybrid car batteries and fiber optics may seem green to the consumer, but behind them there's a very dirty mining business that rapes the planet and pollutes the rivers in order to recover these "green" rare metals.

In any case, unless scientists find less-rare alternatives to many of these rare earth metals, we are looking at a serious global supply crunch for the years 2012 - 2020. Add the "rare earth elements bubble" to your list of other bubbles to watch out for in the years ahead.

Some of the 17 rare earth elements

Dysprosium - Makes electric motor magnets 90% lighter

Terbium - Makes electric lights 80% more efficient

Neodymium - Used in motor magnets

Lanthanum - Used for hydrogen storage

Praseodymium - Used in lasers and ceramic materials

Gadolinium - Used to manufacture computer memory

Erbium - Used in the manufacture of vanadium steel

Ytterbium - Used to make infrared lasers

Uranium Prices To Hit $100.00P/Lb Next Year

Published on Saturday Sept 11 2010.

Stock market analyst Fat Prophets says uranium prices are likely to double by August 2011.

Fat Prophets calls a 12-month price of uranium of US$100 per pound, and US$60 by December 2010. The TradeTech uranium spot price was $46.75 per pound on 3 September.

Fat Prophets’ managing director, Greg Smith says the price rise will be driven by China's ongoing adoption of reactors and the run up to what the company believes to be a massive global demand for nuclear power.

The spot uranium market has been extremely active since the end of August, with eight transactions concluded during the first three days of September, according to TradeTech.

“With over 30 million pounds U3O8 already sold in the spot market this year, many sellers have met their sales goals for 2010 and spot supply available for immediate delivery is relatively thin,” TradeTech said 3 September.

Adding, ”As a result, several buyers are extending their time horizon for delivery into the first quarter of 2011.”

Uranium Spot Price Rebounds To $48.00P/Lb

The spot market price of uranium continued to soar over the past week to now stand at around $48 a pound U3O8, about $2.50/lb more than August 31.

U3O8 Pricing

UX U3O8 Spot :: US$48.00/lb

UX U3O8 Long Term :: US$58.00

Greater than expected demand by non end users and relatively few current sellers continue to put upward pressure on the price, several analysts said. The price may break through $50/lb sooner than many had predicted, one analyst said, adding that he expected end-user demand to pick up in the fourth quarter as utilities move to fill any remaining uranium requirements they may have in 2011.

But whether the spot price rises much above $50/lb is uncertain, said another analyst, given that more sellers likely will appear after the spot price hits $50/lb. Another market source said he still believed the current price increase was fragile. He noted that all it took was one aggressive seller in the last full week of August to push the price from above $46/lb to below $44/lb.

The rapid spot price rise was reflected in prices that TradeTech and Ux Consulting published. TradeTech raised its spot price Friday to $46.75/lb, up $1.25/lb from its August 31 price, while Ux raised its price Tuesday to $48/lb, up $3/lb from its August 30 price.

TradeTech reported that over the past week about 1.2 million lb U3O8-equivalent traded in eight transactions, with producers and intermediaries the buyers in most of the deals. TradeTech noted that with more than 30 million lb sold in the spot market in 2010, many sellers have met their sales goals for the year and spot supply available for immediate delivery is relatively thin. Back in the market, according to several sources, is Argentina's Combustibles Nucleares Argentinos S.A., which is said to be looking to buy about 520,000 lb U3O8e for 2011 delivery.

Ux's broker average price was $47.08/lb a pound U3O8 Tuesday, up from the $45.85/lb BAP August 31. The BAP is a daily calculated midpoint of the bids and offers that ICAP, Evolution Markets and MF Global report, Ux said. In the long-term market, both Ux and TradeTech kept long-term prices for the end of August at $60/lb.

TradeTech's monthly mid-term price remained at $50/lb at the end of August. One analyst said downward pressure on the mid-term price has clearly been removed by the latest spot price surge. The Platts NuclearFuel range for the week was $44.50/lb to $47.50/lb.

Uranium Spot Price Rises To US$48.00 P/Lb +$3.00

Published on Wednesday 8th Sept 2010

September 6, 2010
Weekly Spot Ux U3O8 Price

Up $3.00 - US$48.00P/Lb.

Now Trading @
US$48.00 P/Lb.
Aus$52.61 P/Lb.
Can$50.28 P/Lb.

U3O8 Price (lb)	$48.00	[+3.00]	€37.84	[+2.36]

Excellent News for fellow Uranium Bulls


.

Rare Earths - China Stranglehold Has Changed The Game

Published on Sunday Sept 5, 2010



All 17 of the rare earth elements are metals.
Cerium
Dysprosium,
Erbium,
Europium,
Gadolinium,
Holmium,
Lanthanum,
Lutetium,
Neodymium,
Praseodymium,
Promethium,
Samarium,
Candium,
Terbium,
Thulium,
Ytterbium
Yttrium

Unfamiliar names, yet rare earths are used in most modern and almost all ‘green’ applications. A few everyday examples are cell phones, computer monitors, DVD players, flat panel televisions, e-readers, iPods, rechargeable batteries for hybrid and electric cars, catalysts in cars and oil refineries, advanced ceramics, super-conductors, fiber optics, lasers, CFL light bulbs, wind turbines, and military systems.

About 97% of the world’s rare earth supplies originate from China. In fact, there are very few companies outside China producing the metals. Inner Mongolia Baotou Steel Rare Earth Hi-Tech Co. is China’s single largest producer of the metals. In 2008, China produced 120,000 tonnes of rare earth metals followed by India with 2,700 tonnes. Brazil and Malaysia were the third and fourth largest producers respectively.

China, Japan and the United States are the largest consumers of rare earth metals. With the growing demand for ‘green’ products, the demand for rare earth metals is only expected to increase. Supplies however, are facing deep constraints. The annual growth in demand is expected to hover around 10% but according to analysts, China will be able to supply only 160,000–170,000 tonnes of rare earth metals against an expected demand of 200,000–210,000 tonnes by 2014.

Since 2005, the Chinese government has been imposing export quotas on many of the rare earth metals, resulting in reduced global supply. Higher prices are a natural result of such supply restrictions.

Analysts are of the opinion that by 2012, the rest of the world could face a major supply crisis because of China’s reduced or zero supply. The demand-supply is expected to touch 30,000–40,000 tonnes by 2012 in the absence of any new large supplier. China’s export quotas for the second half of 2010 have already been reduced by an alarming 40%. Reacting to China’s announcement, David Menzie, Chief of the International Minerals Section at the US Geological Survey, said, “Countries and companies that have or plan to develop industries that need rare earth minerals to make products are concerned about China’s growing consumption, which they fear will eliminate China’s exports of rare earths”.

China currently consumes 60% of the global rare earth metals and the nation’s growing economy is creating a worldwide threat to supply. China insists that it requires the high supplies to meet the demands of its clean energy and high-tech sectors. Analyst Min Li of Yuanta Securities cautions, “Foreign companies could be facing some material supply risks, unless they decide to move production to China.”

The global rare earth market is still relatively small but with both China and South Korea planning to soon increase their electric and hybrid car production by 1 million units each, Toyota Motor Corporation intent on doubling production of the Prius to 2 million units, and the massive increase in demand for wind turbines worldwide, the market is unlikely to remain small for too long.

While the development of new ‘green’ technologies that are rare earth-free could challenge China’s monopoly, it cannot be denied that China will continue to control the global market for some time to come. Several new overseas mine projects are in the pipeline but few are likely to be able to compete with China on prices. Besides, it would require at least a decade before new mines can make an impact on the global market.