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PERTH (miningweekly.com) – Uranium has the potential to be the next billion-dollar export industry for world number-three producer Australia, with an earnings potential of close to A$2-billion a year.
Despite being home to 32% of the world’s uranium resources, the country only accounted for 11% of global production, the Minerals Council of Australia (MCA) stated in a report titled ‘Uranium: Natural Energy’.
Australia produced 5 710 t of uranium during 2013/14, which generated earnings of A$622-million.
“It has been unfortunate that despite Australia’s massive endowment with uranium, to date our industry has not fulfilled its potential. We host almost a third of the world’s uranium resources but supply only 11% of the global production,” MCA executive director for uranium Daniel Zavattiero said at a conference in Adelaide on Tuesday.
“That 11% is not an insignificant volume. We are important suppliers today, but the inescapable point is we have the resource capacity, and mining and metal extraction capability, to do much more.”
Supported by growing production and world demand, Australia’s uranium export volumes were projected to increase at an average yearly rate of 10% to 8 900 t in 2018/19, the MCA’s report noted. Export values were projected to increase at an average yearly rate of 17% to total A$1.1-billion in 2018/19.
“It is within reach to enhance our A$600-million to A$800-million a year uranium revenues to over one-billion dollars a year, particularly now with several new projects going through the key approvals stages,” Zavattiero said, noting that the source of the growth was likely to be the northern region of Australia.