Fall in ERA’s share price

Rio’s ERA Drops After Australia Uranium Mine Spill: Sydney Mover Bloomberg, By James Paton  Dec 8, 2013 Rio Tinto Group’s Energy Resources of Australia Ltd. tumbled the most in almost two years in Sydney trading after an acid and ore spill at its Ranger uranium mine near world heritage-listed Kakadu National Park.

ERA (ERA), 68.4 percent owned by London-based Rio, dropped 13 percent to A$1.135, the most since Feb. 1, 2012, while the benchmark S&P/ASX 200 Index fell 0.8 percent…….http://www.bloomberg.com/news/2013-12-09/rio-s-era-drops-after-australia-uranium-mine-spill-sydney-mover.html

Rossing uranium mine has disastrous radioactive spill

Rössing shuts operations after ‘catastrophic leak’ Namibia Times, December 6, 2013  By Jade McClune & Marshallino Beukes All milling operations at Rössing Uranium Mine ground to an immediate halt after “a catastrophic structural failure” at one of twelve leach tanks in the processing plant on Tuesday.

The incident triggered a veritable crisis, reinforcing widespread fears of a radioactive leak.

Sources at the mine told the Namib Times on Tuesday that they had heard some “kind of explosion”.

The mine has since confirmed that a leak was detected near one of the leach tanks and said there was “a very serious incident”, but did not mention any explosion.

A Red Banner Health and Safety Alert was sent out to all employees of the mine on Wednesday, confirming that there had been a “leach tank failure” at around 18:30 on Tuesday, 3 December.

The actual outcome of the incident was described as “serious” and the “maximum reasonable outcome: critical”……..http://www.namibtimes.net/forum/topics/rossing-shuts-operations-after-catastrophic-leak

Australia’s uranium miners face gloomy future if Japan does not restart nuclear reactors

Japan goes nuclear-free The Motley Fool, By Justin Loiseau – September 16, 2013 Japan is closing down its last operating nuclear reactor for scheduled maintenance, putting the country in “nuclear-free” territory for the first time since the Fukushima crisis necessitated nationwide inspections two years ago. Japan has 50 commercial reactors nationwide, and the March 2011 Fukushima disaster marked the first time in over 40 years that the country pulled power exclusively from non-nuclear sources.

Japan is split on the future of this fuel. While Prime Minister Shinzo Abe and utilities point to the need for nuclear to meet Japan’s growing energy demands, the general public and environmental activist groups remain apprehensive about the safety of local reactors.

Japan and Australia may be oceans apart, but the two countries are closely linked. Energy Resources of Australia (ASX: ERA) is one of the largest uranium producers in the world, the secret sauce of nuclear reactors. Rio Tinto (ASX: RIO) has a 64% stake in the company as well, and Japan’s exit from nuclear could push prices down drastically if it bids adieu indefinitely. Paladin Energy (ASX: PDN) and its 82%-owned Summit Resources(ASX: SMM) subsidiary tell a similar story. Spot prices have already dropped from $65 highs in 2011 and are currently hovering around $35, similar to 2006 markets. 

Japan’s nuclear notions are unclear, and proponents of the energy have warned of blackouts if the country doesn’t jump back on the nuclear track. Opponents, including Greenpeace Japan, are instead pushing Japan to seize the opportunity to become a leader in renewable energy.

Regardless of the ultimate outcome, this latest nuclear shutdown is another bump in the road (read “increased risk”) for nuclear energy and its uranium producers……http://www.fool.com.au/2013/09/16/japan-goes-nuclear-free/

Rio Tinto cuts back as uranium market remains gloomy

Namibia’s Roessing uranium mine to slash jobs Global Post, 1 Mar 13, The Roessing uranium mine in Namibia, a unit of British mining giant Rio Tinto, said Friday it plans to cut 17 percent of its workforce due to slowing demand for nuclear fuel…. As with many other uranium producers, Roessing is buckling under low metal prices and reduced demand, the company’s managing director Chris Salisbury told reporters.

“Since the Japanese tsunami in 2011, uranium demand has remained depressed and the uranium price has fallen by more than 36 percent,” he said.

Japan shut down its nuclear power plants after the tsunami destroyed the Fukushima nuclear plant, and a number of other countries including Germany have also signalled they plan to reduce or phase out their facilities.

“With the utility sector in Japan essentially shutdown, there is little prospect of a turnaround in the near term,” he added.

At the same time electricity and water costs have gone up…. Roessing Uranium Limited is owned 68.6 percent by British mining giant Rio Tinto and is one of two operating uranium mines in Namibia. .http://www.globalpost.com/dispatch/news/afp/130301/namibia-s-roessing-uranium-mine-slash-jobs

Dubious record of Australian uranium mining companies; Paladin and Rio Tinto in Africa

What have interested Australian companies, or the Australian government, done to address these concerns?…….

 what should we make of Australian Defence Force chief General David Hurley’s alarming indication that there might be a role for the ADF in protecting “Australian interests” in Africa?

Multinational miners: magnanimous or malevolent? Kellie Tranter – lawyer and Humna Rights Activist, FEBRUARY 1, 2013 BY KELLIE TRANTER   “……..Malawi “…….Minister Carr praised the work of Australian mining company Paladin, referring to its strong corporate social responsibility.  Paladin operates Malawi’s biggest uranium mine, the Kayelekera.

In June 2008, The Bench Marks Foundation released a report ‘Corporate Social Responsibility and the Mining Sector in Southern Africa’ which suggested that when Paladin struck its deal with the Malawi government to mine uranium, it was agreed that it would get a 100% capital write off, a reduction in corporate tax from 30% to 27.5% and a scrapping of the 10% resource rent tax.  Paladin was also to be exempt from the standard 17.5% import VAT or duty and a royalty rate reduced from 5% to 1.5% in the first three years and 3% thereafter.

Rio Tinto paid far too much for uranium acquisition

While Rio thought it was buying the asset at the bottom of the uranium
market – which had been badly depressed after the Fukushima nuclear
disaster in March 2011 – it was soon proved wrong when prices for
sales of uranium fell by close to 15 per cent in 2013.

Rio’s uranium foray faces write-down, The Age January 21, 2013 PeterKer  RIO Tinto’s most recent acquisition could be among those written down next month when the miner reveals full details of the $US14 billion in impairments that cost chief executive Tom Albanese his job.

Cut throat competition for dwindling uranium market?

Did rivals try to scupper BHP’s uranium sale to Cameco?Mining.com, Frik Els | November 23, 2012 The West Australian reports rumours have been circulating in the state’s mining community that Rio Tinto (NYSE:RIO) and Paladin Energy
(TSX:PDN) attempted to sabotage BHP Billiton’s (LON:BHP) $448 million sale of uranium property Yeelirrie to Canada’s Cameco (TSX:CCO)….. The paper said Rio denied the rumours while none of the other parties commented, and that the deal is likely to be OK’d in any event.

Spot uranium prices have been drifting towards the $40 per pound level this year – well below the $66.50 prior to Fukushima disaster in Japan and down from historic high levels above $130 in 2007.

Last year nuclear power consumption declined 4.3%, the largest drop-off on record, said BP in its annual study of global energy use. Japan cut back nuclear power by 44.3%, and Germany reduced nuclear consumption by 23.2%.http://www.mining.com/did-rivals-try-to-scupper-bhps-uranium-sale-to-cameco-87504/

In gloomy uranium market, Paladin and Rio try to stop Cameco’s purchase of Western Australian uranium deposit

there’s speculation the miners, who own their own uranium deposits, did not want Yeelirrie developed because of the already weak fundamentals in the uranium sector.

Paladin and Rio attempt to block BHP deal
http://www.miningaustralia.com.au/news/paladin-and-rio-attempt-to-block-bhp-deal 23 November, 2012Andrew Duffy   Rio Tinto and Paladin Energy have attempted to scuttle BHP Billiton’s $430 million sale of the Yeelirrie uranium deposit to Canadian giant Cameco.

Both Rio and Paladin have made submissions to the Foreign Investment Review Board expressing concerns about the sale, The West Australian reports.

Actually sendng uranium from Australia to India – a distant dream

 the glacial pace of nuclear power plant construction and activation in India in the face of anti-nuclear campaigns;

Indian uranium deals a long way off  GEOFF HISCOCK   The Australian October 29, 2012 AUSTRALIA’S new willingness to sell uranium to India is more about snuggling up to Asia’s third largest economy than any actual nuclear
commerce. It is highly unlikely that Australian uranium will be powering Indian nuclear reactors in this decade.

India’s 20 operating reactors, spread across six sites, have an installed capacity of 4.8 gigawatts (GW) and consume about 1000 tonnes of uranium a year. With New Delhi setting revised goals of boosting nuclear output to 14.4 GW
by 2020 and between 27.5 and 63 GW by 2032, the decision by the Gillard government to allow uranium sales to India seemingly presents an opportunity for Australian producers BHP Billiton, Rio Tinto, Heathgate Resources and Uranium1.

Queensland’s sordid history of uranium mining

Queensland Forgets Its Uranium History http://newmatilda.com/2012/10/24/queensland-forgets-its-uranium-history Jim Green, New Matilda, 24 Oct 2012 The Queensland Government is unwise to reverse the ban against uranium mining and there is no stronger reason than the industry’s sordid track record in the state.