Uranium mining remains conservative

The Western Australian government decision to lift the ban on uranium mining does not mean projects will be expedited, DJ Carmichael head of research Paul Adams has said.

“There is an opportunity to now, with renewed vigour, pursue the development of these projects,” he said.

“Having said that … four years is a long time in politics and anything could happen.

“Do investors see that as a potential risk? They should.”

Energy and Minerals Australia (EMA) on the other hand, has said that it can expedite the development of its Mulga Rock project.

Adams is adamant that while EMA has a fair chance of success, others would find it difficult to get prjects up and running while capital remains tight.

This view is shared by Robert Wrixon, managing director of Uranio, which broadened its portfolio to coal in Madagascar and is eyeing further acquisitions of uranium projects in WA.

“I very much doubt anyone is going to have a uranium mine and a processing plant in operation (in WA) by the time the next election comes around,” Dr Wrixon said.

He said it was possible Labor could return to power after the next state election in 2012 and it was also even possible they could become pro-uranium converts in the meantime.

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