Low uranium price means that Cameco’s Western Australian projects may not go ahead

Spot Uranium Falls Below $40/Pound Benchmark for First Time in Four Years http://uraniuminvestingnews.com/14766/spot-uranium-falls-below-40pound-benchmark-for-first-time-in-four-years.html   June 7, 2013,The West Australian reported that spot uranium prices fell to below $40/pound for the first time since August 2009, placing pressure on uranium explorers.

As quoted in the market report:

A hearty increase in the spot price is needed to force WA’s fledgling uranium sector into first gear, with Canadian giant Cameco indicating a price of more than $70/lb is needed before it can give the green light to its massive Yeelirrie or Kintyre deposits.

Australia’s uranium industry future – not looking too good

recent steps by BHP to cuts of its uranium program — from the delay of the uranium production expansion plan at the Olympic Dam project to the selling of a large Yeelirrie deposit located in Western Australia.

Recent Ranger and Olympic Dam issues along with various problems related to notable Australian uranium projects like Angela/Pamela, Kintyre, Oban, Wiluna and Koongarra, amongst others, have also caused concerns about the future development dynamics of the local uranium industry.

Australia’s uranium industry hits turbulence Mining.com, Vladimir Basov | February 8, 2013 Recent news from Australia raises serious concerns about the future development of its domestic uranium industry. While established players are exiting the market, others are lining up to explore new areas and have made some positive moves.

Open-pit mining operations at Ranger mine were terminated at the end of November 2012. To this date, Ranger mine was one of the largest uranium production centres worldwide with a total cumulative output of more than 100,000 tonnes of uranium oxide.

On Dec. 7, 2012, the operator of Ranger mine, Energy Resources of Australia Ltd. (ERA), announced that work on backfilling the pit had already started, with the first phase to be completed by the end of 2014.

Aboriginal landowner leads the campaign against uranium mining at Yeelirrie

Traditional owner opposes Yeelirrie development http://www.abc.net.au/news/2012-08-28/traditional-owner-opposes-yeelirrie-development/4227384 Aug 28, 2012   A traditional owner is planning to step up protests against uranium mining at Yeelirrie, near Wiluna. Kado Muir says the new owners of the Yeelirrie deposit in the Goldfields will have a tough time trying to develop a mine at the site.

BHP Billiton has announced it is selling the deposit to Canadian-based Cameco.The Minister for Mines, Norman Moore, has welcomed the deal saying Cameco is more likely to develop a mine at the site.

Mr Muir says he is concerned about the change of ownership. ”With Cameco in place, it does cause quite a bit of concern for us because they are a company who will seek to develop the mine as quickly and as soon as they can,” he said.
“That just adds impetus to our campaign to ensure that WA remains a uranium-free state.”

Mr Muir believes the public will not support uranium mining in WA. ”We are worried about it,” he said. ”[Cameco] are up against the wall in terms of time lines and the people of WA have not yet had the chance to voice their concerns about
uranium mining at the ballot box. ”There is no broad community support for uranium mining in WA.”

Yeelirrie uranium project offloaded to Cameco, by BHP

BHP offloads Australian uranium project to Cameco August 30, 2012 Business  Recorder,    BHP Billiton on Monday said it was selling one of Australia’s largest underdeveloped uranium mines to Cameco for US $430 million, just days after delaying its Olympic Dam copper and uranium project. The world’s biggest miner said an agreement had been signed for its wholly-owned Yeelirrie uranium deposit in Western Australia, and was awaiting clearance from Australian regulators and the state government. ….
Chief executive of Melbourne-based BHP Marius Kloppers last week said the company had no plans to develop any uranium projects other than Olympic Dam. “Generally speaking those mines are too small a scale to fit in our portfolio and the product, quite candidly, is too small to fit into our portfolio on its own,” he said. http://www.brecorder.com/agriculture-a-allied/183/1232067/

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Collapse of uranium price hits Cameco and BHP Billiton

He [BHP CEO Marius Kloppers] said demand for uranium had collapsed after the Fukushima nuclear incident last year

The Olympic Dam and Yeelirrie shocks from BHP came hot on the heels of the decision by Canada’s Cameco to go slow on a development of its Kintyre uranium project in WA’s Great Sandy Desert 

Barnett tells miner to sell asset to other developers BY: ANDREW BURRELL  The Australian August 27, 2012  BHP Billiton has abandoned its controversial Yeelirrie uranium project in Western Australia, with chief executive Marius Kloppers saying the deposit is too small for the mining giant’s portfolio at a time of collapsing global demand.

BHP likley to sell out of its uranium project in Western Australia

Procrastinating BHP pressured over uranium deposit, Rania Spooner May 23, 2012 BHP Billiton has been challenged to develop or sell a West Australian uranium deposit, amid growing speculation it may offload the deposit later this year.

Despite a pro-uranium WA government, BHP Billiton delayed submission of the draft environmental review and management program for its Yeelirrie uranium project in June, citing a failure to meet internal standards and flagging a delay of at least six months. Almost a year later,.. speculation grows that a sell-down of the asset is imminent Kalgoorlie

BHP Billiton contemplating sale of its Yeelirrie uranium project

BHP tipped to sell $9.3b worth of assets SMH February 9, 2012 BHP Billiton may consider selling about $US10 billion ($9.3 billion) of aluminum, nickel and coal mines and smelters as it trims its portfolio, Deutsche Bank says….

BHP could also sell its Yeelirrie uranium project in Australia and some petroleum assets, Citigroup said today in a report.
http://www.smh.com.au/business/bhp-tipped-to-sell-93b-worth-of-assets-20120209-1rnn0.html#ixzz1lucfhUlg

FMG pegs swathes of new tenements in major SA copper, gold and uranium districts by: Nick Evans  PerthNow,  February 07, 2012 FORTESCUE Metals Group has given the clearest sign yet it intends to diversify out of the iron ore and steel supply chain, pegging swathes of new tenements in South Australia’s major copper, gold and uranium districts.

The WA iron ore giant last year applied for 10 exploration licences covering about 4600sq/km of ground, mostly in the Woomera protected area in central South Australia. In its tenement applications, FMG said it was looking for copper, gold
and uranium – a significant departure from its current iron ore business.

According SA Government records, the bulk of FMG’s new tenements sit between OZ Minerals’ Prominent Hill copper-gold mine and BHP Billiton’s massive Olympic Dam project, slated to eventually become one of the biggest copper, gold and uranium mines in the world. …. http://www.perthnow.com.au/business/fmg-pegs-swathes-of-new-tenements-in-major-sa-copper-gold-and-uranium-districts/story-e6frg2qc-1226265102556

Yeelirrie uranium project staff being moved elsewhere

Query on Yeelirrie after BHP moves PETER KLINGER, The West Australian, June 20, 2011, A fortnight after admitting it had put the Yeelirrie environmental approvals process on hold, BHP Billiton is understood to have begun dismantling the senior management team charged with overseeing WA’s biggest uranium development.

The management changes have increased speculation that BHP is considering severing ties with Yeelirrie, south of Wiluna, because it does not fit the miner’s focus on tier-one assets. It is understood the positions of Yeelirrie project director and general manager are under review amid unconfirmed reports several other key members of the Yeelirrie team have either left or been reassigned elsewhere within BHP……..
The miner is under enormous pressure from investors to find and develop projects that will make a material difference to its top and bottom lines, Complicating the matter for BHP is that development of Yeelirrie would create significant political and community backlash in WA, where there is vocal opposition to uranium mining, in return for only modest financial rewards for the world’s biggest miner…..http://au.news.yahoo.com/thewest/business/a/-/wa/9669593/query-on-yeelirrie-after-bhp-moves/

BHP’s Yeelirrie uranium project likely to fizzle out

“the nuclear industry is increasingly unpopular and unprofitable and BHP Billiton has seen the writing on the wall for the uranium trade in WA”.

BHP’s Yeelirrie doubts reflect high risk and low return from uranium mining,  20 June 11,  WA’s peak environment group today welcomed news that BHP Billiton’s Yeelirrie uranium mining project is indefinitely on hold, with growing speculation that BHP will pull out of the project altogether.

Shareholder opposition to BHP’s uranium mining projects

The production of radioactive tailings waste is projected to increase from 10million tonnes each year to 68million tonnes. The tailings dams now rise more than 20m above the landscape and cover many square kilometres. BHP Billiton intends these tailings piles to increase to 60m high and to cover up to 44sqkm.

BHP Billiton’s uranium quest has too many risks  John Poppins, Canberra Times, Nov 15, 2010 Thousands of ordinary Australians, including my own family have benefited from BHP Billiton’s mining success. However, like increasing numbers of BHP Billiton shareholders, we are troubled by the long-term effects of some aspects of its mining projects.