BHP drops another uranium mine

Less than a week after shelving expansion plans for Olympic Dam, BHP Billiton has sold the Yeelirrie uranium deposit in Western Australia to Cameco for $US430 million.

In a statement BHP said the sale to the Canada-based company was still subject to approval from the WA Government and Foreign Investment Review Board.

BHP said Cameco was one of the world's largest uranium miners and was well placed to develop Yeelirrie in a "responsible manner".

The sale has been welcomed by the WA Government, which previously encouraged BHP to offload the asset.

While BHP said the move did not signal low confidence in the uranium sector, some analysts have marked uncertainty about market demand as the driving factor for the sale.

Last week BHP also cancelled $US20billion expansion plans for its copper/uranium Olympic Dam mine.

Image: Top News

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.