by:TIM MORRIS From:The Australian March 19, 201312:00AM
RELATIVE to its share of global resources, Australia's uranium mining industry appears under-represented.
The nation hosts the world's largest uranium inventory with one-third of known recoverable resources, although mining output accounts for just over 10 per cent of global production.
Production is concentrated to four operating mines in South Australia and the Northern Territory, although recent liberalisation of mining regulations in other states could foster further development of the industry.
Western Australia led the way in 2008, as the newly elected Barnett government overturned its predecessor's political ban on uranium mining. NSW loosened its opposition to the industry in the middle of last year, overturning a 26-year moratorium on uranium exploration. Queensland is the latest state opening its arms to uranium, with its lifting of a mining ban late last year driving this month's entry by Laramide Resources to the Australian Securities Exchange.
The exercise represents a secondary listing for the Canadian-based company, which has a portfolio of uranium assets in the US and Australia.
As certified resources exceeding 60 million pounds have been established across the portfolio, Laramide is focused on mine development. Its US assets offer short-term cashflow potential, while the West Moreland project in Queensland provides a large-scale value growth opportunity.
West Moreland ranks as one of Australia's 10 largest uranium deposits. A scoping study completed in 2007 suggested the project could produce three million pounds a year.
Its scale is comparable to the Langer Heinrich open pit mine in Namibia. Operated by Paladin Energy (PDN), Langer Heinrich ranks within the world's 15th-largest uranium mines.
Before West Moreland joins this illustrious league, Laramide must meet significant permitting and feasibility milestones.
To help establish its operating credentials, mining at the company's smaller La Sal project in Utah is scheduled to start late next year. While processing is facilitated via a toll treatment agreement with a third-party mill, production experience could enhance its local development schedule.
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