ENERGY and Minerals Australia (EMA) is set to announce initial estimates for its Mulga Rock uranium deposit in Western Australia.
The developments follow the appointment of a new conservative government in WA that overturned a long-standing ban on uranium mining in the state.
The resource, situated 250km north-east of Kalgoorlie, is the largest uranium asset in Western Australia not controlled by BHP Billiton or Rio Tinto.
According to JPMorgan analysts, the long-term price for uranium is currently set at $US65 a pound which reflects a “view of long-term supply tightness” that will benefit Australia’s competitiveness in the mining sector.
The analysts predict Australian ouput will begin rising in 2013 as “long-awaited Western Australian projects come online”.
JPMorgan says nuclear facilities, which use uranium resources, focus on longer time frames that will continue to offer a premium for security in the future.
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