Post by Sapphire Capital on Jul 14, 2008 1:26:18 GMT 4
July 14, 2008
RIO Tinto has offloaded its Kintyre uranium project in Western Australia for close to $515 million as it continues its asset-disposal program.
The exploration project, said to have potential deposits of up to 80 million pounds of uranium, has been bought by a consortium comprising Cameco of Canada and Mitsubishi of Japan.
As soaring oil prices and international attempts to reduce greenhouse gas emissions have put the spotlight back on nuclear energy, Japanese trading houses are also moving to take upstream equity stakes in uranium production. Mitsubishi last year took a half-share in a uranium mining project in Canada.
The deal brings to about $3 billion the amount Rio has raised through disposals so far this year. As part of its defence against a hostile takeover by BHP Billion, Rio chief executive Tom Albanese has pledged to sell $10 billion in assets this year and at least $15 billion in total.
The new owner of Rio Tinto's Kintyre uranium deposit should be under no illusion it can be mined while Labor is in government, West Australian Premier Alan Carpenter says.
There are nine uranium deposits in WA, and while companies are allowed to explore for the metal, Labor policy prevents it being mined.
The WA Greens and some in the WA Labor Party think the State Government should back up its policy with a legislative ban.
"I don't believe it will be necessary and I don't believe it is necessary but if it was to become necessary then, of course, that would be an option we could pursue," Mr Carpenter said yesterday.
"(What) I would anticipate is that what these companies are doing is taking a long-term view about the possibility of mining uranium in Western Australia and they'll wait me out.
"We've got lots of issues we have to legislate on … I don't believe it's necessary to legislate now on uranium because our policy is firm and people know it."
TELEGRAPH, AAP
RIO Tinto has offloaded its Kintyre uranium project in Western Australia for close to $515 million as it continues its asset-disposal program.
The exploration project, said to have potential deposits of up to 80 million pounds of uranium, has been bought by a consortium comprising Cameco of Canada and Mitsubishi of Japan.
As soaring oil prices and international attempts to reduce greenhouse gas emissions have put the spotlight back on nuclear energy, Japanese trading houses are also moving to take upstream equity stakes in uranium production. Mitsubishi last year took a half-share in a uranium mining project in Canada.
The deal brings to about $3 billion the amount Rio has raised through disposals so far this year. As part of its defence against a hostile takeover by BHP Billion, Rio chief executive Tom Albanese has pledged to sell $10 billion in assets this year and at least $15 billion in total.
The new owner of Rio Tinto's Kintyre uranium deposit should be under no illusion it can be mined while Labor is in government, West Australian Premier Alan Carpenter says.
There are nine uranium deposits in WA, and while companies are allowed to explore for the metal, Labor policy prevents it being mined.
The WA Greens and some in the WA Labor Party think the State Government should back up its policy with a legislative ban.
"I don't believe it will be necessary and I don't believe it is necessary but if it was to become necessary then, of course, that would be an option we could pursue," Mr Carpenter said yesterday.
"(What) I would anticipate is that what these companies are doing is taking a long-term view about the possibility of mining uranium in Western Australia and they'll wait me out.
"We've got lots of issues we have to legislate on … I don't believe it's necessary to legislate now on uranium because our policy is firm and people know it."
TELEGRAPH, AAP