PERTH (miningweekly.com) – The world’s biggest diversified miner BHP Billiton plans to move its Yeelirrie uranium project, in Western Australia, to feasibility study stage by the end of this year, GM Andrew Shook said on Tuesday.

However, he told an uranium summit in Perth that the project was “under review”, following the government’s plan to introduce a 40% resources tax on super profits starting in 2012.

Yeelirrie is BHP’s second uranium project in Australia, following in the footsteps of Olympic Dam, in South Australia.

The mining giant was currently undertaking an expansion programme at the Olympic Dam to increase uranium output from its current 4 500 t of uranium oxide to 19 000 t.

But CEO Marius Kloppers said at the weekend that the proposed ‘super tax’ by the federal government was "threatening” the Olympic Dam expansion.

The Yeelirrie project will be one of Western Australia’s first uranium producers.

Shook said that between three- and four-million tons of ore a year would be mined at Yeelirrie, to produce 3 500 t/y of U₃O₈ equivalent.

The Yeelirrie operations would be fitted with a processing plant with a 1,2-million ton a year capacity.

The project had a life-of-mine expectancy of around 30 years.

He added that since the deposit was relatively close to surface, mining costs would be reduced.

Shook said that the uranium market was becoming necessary to BHP’s portfolio, as demand was expected to outstrip supply by 2015.

“We see uranium as a very attractive place for the company to be. It is the only true source of low greenhouse base-load power, so it is remarkably attractive to a number of economies, particularly the emerging economies such as China and India.”

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