Draneidan
01-07-2007, 06:28
What are your views on this subject? Do you think it makes Australia a target for nuclear-power hungry nations?
For decades, it seemed that the bulk of Australia's massive uranium deposits, an estimated 40 percent of the world's reserves, were destined to remain deep underground.
Depressed prices and a maze of government restrictions arising from popular opposition to nuclear power held mining and exploration in check.
Only three working mines have been allowed since 1988, opening the way for Canada, which has smaller reserves, to remain the world's leading supplier.
Now, China's burgeoning appetite for energy along with soaring international prices for uranium are poised to unlock Australia's reserves and spark a mining and exploration boom.
The Australian and Chinese governments last month agreed to begin negotiating a treaty that would guarantee that Australian uranium would be used only for peaceful purposes, clearing the way for long-term supply contracts.
"China does not have sufficient domestic uranium resources to meet this demand economically, which is why it is set to become a major uranium importer," Alexander Downer, the Australian foreign minister, said in a speech.
Popular attitudes to nuclear power are changing fast as fears mount about the possible environment consequences of greenhouse-gas emissions from the burning of fossil fuels.
"Australian society, led by a few members of the political elite, are waking up to the fact that uranium does less damage," said Tim Treadgold, a veteran mining industry analyst based in Perth.
In the midst of a broad-based commodities boom, Australian export earnings from uranium for the year 2005 rose 30 percent, to 475 million Australian dollars, or $361 million, according to government trade statistics released on Wednesday.
The global spot price for uranium oxide, the form in which the fuel is sold, has soared 200 percent since early 2003, to about $30 a pound.
Some analysts said they expected prices to increase further, perhaps to $50 a pound, as demand increases and the vast stockpile of fuel from decommissioned Soviet nuclear weapons continues to run down.
Two of Australia's three working uranium mines are in South Australia, BHP Billiton's Olympic Dam mine and General Atomic's Beverley mine. The third is the Ranger mine in the Northern Territory, owned by Energy Resources of Australia.
About 10,600 metric tons of uranium oxide from these mines were last year exported to customers like utilities in the United States, the European Union, Japan and South Korea. This accounted for about 22 percent of global production.
Senior government officials predict that exports could triple by 2010.
Energy Resources of Australia, a 68.4 percent-owned subsidiary of Rio Tinto, is Australia's only pure uranium miner. Its shares have risen almost 150 percent this year, closing at 16.35 dollars, up 2.4 percent, on Wednesday.
Australian government officials and industry analysts estimate that China's demand for uranium by 2020 could be almost equal to Australia's current annual output.
About 80 percent of China's electricity is generated at coal-fired power stations, but the authorities are now investing heavily in nuclear power in a bid to counter blanketing pollution and damaging power shortages.
China has nine nuclear power reactors in operation, two under construction and many more on the drawing board as it attempts to more than double the share of nuclear-generated electricity from about 1.4 percent now to more than 4 percent by 2020.
That could mean up to 30 new power plants, in addition to those now in operation. Three foreign companies, Westinghouse Electric of Pittsburgh, Areva in France and Atomstroiexport in Russia, are bidding for an $8 billion contract to build four third-generation reactors in China.
The China Daily reported in July that China Power Investment, a major power producer, planned to build 10 reactors in Liaoning and Shandong provinces in a bid to cut coal consumption.
While China could become an important customer for Australia, some industry analysts warn that it would be unreasonable to assume a single supplier would dominate the Chinese market.
"China's demand is not going to be that great," said Ian Hore-Lacy, general manager of the Uranium Information Center, an industry financed promotional group based in Melbourne. "It will only be about 12 percent of the current world market."
But the expansion of nuclear power in China could become a catalyst for renewed interest in other countries.
Power industry analysts in the United States, where there has been no new nuclear power plants commissioned for 27 years, are closely monitoring China's nuclear program.
Senior political figures in Australia have also suggested that the country will eventually embrace nuclear power.
In the meantime, Australia's federal government and the opposition Labor Party have both supported increased uranium mining and exports. But not all environmentalists agree that increased uranium sales are a sensible approach to limiting greenhouse emissions.
"There are better alternatives," said Senator Bob Brown from the Australian Greens Party. "Australia should be exporting its solar technology, not its uranium."
For decades, it seemed that the bulk of Australia's massive uranium deposits, an estimated 40 percent of the world's reserves, were destined to remain deep underground.
Depressed prices and a maze of government restrictions arising from popular opposition to nuclear power held mining and exploration in check.
Only three working mines have been allowed since 1988, opening the way for Canada, which has smaller reserves, to remain the world's leading supplier.
Now, China's burgeoning appetite for energy along with soaring international prices for uranium are poised to unlock Australia's reserves and spark a mining and exploration boom.
The Australian and Chinese governments last month agreed to begin negotiating a treaty that would guarantee that Australian uranium would be used only for peaceful purposes, clearing the way for long-term supply contracts.
"China does not have sufficient domestic uranium resources to meet this demand economically, which is why it is set to become a major uranium importer," Alexander Downer, the Australian foreign minister, said in a speech.
Popular attitudes to nuclear power are changing fast as fears mount about the possible environment consequences of greenhouse-gas emissions from the burning of fossil fuels.
"Australian society, led by a few members of the political elite, are waking up to the fact that uranium does less damage," said Tim Treadgold, a veteran mining industry analyst based in Perth.
In the midst of a broad-based commodities boom, Australian export earnings from uranium for the year 2005 rose 30 percent, to 475 million Australian dollars, or $361 million, according to government trade statistics released on Wednesday.
The global spot price for uranium oxide, the form in which the fuel is sold, has soared 200 percent since early 2003, to about $30 a pound.
Some analysts said they expected prices to increase further, perhaps to $50 a pound, as demand increases and the vast stockpile of fuel from decommissioned Soviet nuclear weapons continues to run down.
Two of Australia's three working uranium mines are in South Australia, BHP Billiton's Olympic Dam mine and General Atomic's Beverley mine. The third is the Ranger mine in the Northern Territory, owned by Energy Resources of Australia.
About 10,600 metric tons of uranium oxide from these mines were last year exported to customers like utilities in the United States, the European Union, Japan and South Korea. This accounted for about 22 percent of global production.
Senior government officials predict that exports could triple by 2010.
Energy Resources of Australia, a 68.4 percent-owned subsidiary of Rio Tinto, is Australia's only pure uranium miner. Its shares have risen almost 150 percent this year, closing at 16.35 dollars, up 2.4 percent, on Wednesday.
Australian government officials and industry analysts estimate that China's demand for uranium by 2020 could be almost equal to Australia's current annual output.
About 80 percent of China's electricity is generated at coal-fired power stations, but the authorities are now investing heavily in nuclear power in a bid to counter blanketing pollution and damaging power shortages.
China has nine nuclear power reactors in operation, two under construction and many more on the drawing board as it attempts to more than double the share of nuclear-generated electricity from about 1.4 percent now to more than 4 percent by 2020.
That could mean up to 30 new power plants, in addition to those now in operation. Three foreign companies, Westinghouse Electric of Pittsburgh, Areva in France and Atomstroiexport in Russia, are bidding for an $8 billion contract to build four third-generation reactors in China.
The China Daily reported in July that China Power Investment, a major power producer, planned to build 10 reactors in Liaoning and Shandong provinces in a bid to cut coal consumption.
While China could become an important customer for Australia, some industry analysts warn that it would be unreasonable to assume a single supplier would dominate the Chinese market.
"China's demand is not going to be that great," said Ian Hore-Lacy, general manager of the Uranium Information Center, an industry financed promotional group based in Melbourne. "It will only be about 12 percent of the current world market."
But the expansion of nuclear power in China could become a catalyst for renewed interest in other countries.
Power industry analysts in the United States, where there has been no new nuclear power plants commissioned for 27 years, are closely monitoring China's nuclear program.
Senior political figures in Australia have also suggested that the country will eventually embrace nuclear power.
In the meantime, Australia's federal government and the opposition Labor Party have both supported increased uranium mining and exports. But not all environmentalists agree that increased uranium sales are a sensible approach to limiting greenhouse emissions.
"There are better alternatives," said Senator Bob Brown from the Australian Greens Party. "Australia should be exporting its solar technology, not its uranium."