Olympic Dam: More uranium!
Thursday, October 4, 2007 at 12:21PM
Uranium Stocks in Uranium
The Sydney Morning Herald 04oct07

In an article carried by The Sydney Morning Herald BHP Billiton has announced plans to expand Olympic Dam's copper production to 500,000 tonnes a year at their Olympic Dam mine. However rumour has it that an increase in copper production to 1 million tonnes a year is possible with a by-product of about 30,000 tonnes a year of uranium production.

This raises the question of cost effectiveness for other budding uranium miners bearing in mind that the Olympic Dam project is producing uranium as a by-product of copper mining. The article goes on to say that an output of 30,000 tonnes per annum would represent more than 40 per cent of global demand. In terms of time frame this expansion is not expected to come on line until 2010.

The article also points out that other uranium miners such as “Paladin Resources predicts cash costs of $US23 a pound over the life of its Langer Heinrich mine in Namibia, and some of the other Australian uranium hopefuls could have even higher cash costs.”

This is something we need to bear in mind when doing a SWOT analysis and should be well and truly placed under the Threats section.

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