Japanese and Canadian miners’ $500m bet on uranium
Amanda O’Brien & Elizabeth Gosch; 11/7/08
Japanese and Canadian mining giants have made a $500 million bet on a change of government in Western Australia after agreeing to buy Rio Tinto’s vast uranium deposit in the Pilbara region of the state. The state Labor Government remains vehemently opposed to uranium mining, but with an election expected in October, the sale of Rio Tinto’s Kintyre uranium deposit sets up a major political brawl. Under the deal unveiled yesterday, and which is expected to be completed next month, Canada’s Cameco and Japan’s Mitsubishi Development will pay $US496million ($519million) to buy the deposit, which could be worth up to $5 billion at current uranium oxide prices. Cameco noted yesterday: “Australian governments and political parties generally are becoming more supportive of uranium development.”
See: http://www.theaustralian.news.com.au/story/0,25197,24001991-2702,00.html