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overseas pressure to mine!

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    This last week has seen two foreign uranium miners step up their efforts to place pressure on the restrictive uranium mining environment in Australia. First was London-based Rio Tinto, suggesting their intentions to not mine Jabiluka may well change in the future. Then there was French uranium mining giant Cogema on its Koongarra deposit south of Rio's Ranger mine, who stated 'it is known by Australian authoritiesthat we are expecting this issue to be resolved, sooner rather than later ... obviously this is the right time to increase the effort (to gain access)' Somewhat less diplomatic in its approach but of course they are French.

    This is the beginning of what will be a heated global argument as uranium inventories run down. Australia has around 40% of global reserves yet only supplies about 25% of global demand! If supply concerns tighten to 'uncomfortable' levels in a given country, eg France, the US, China, India, then it is not hard to envisage that Australia could face some very serious international attention. Or say you have a world that wants to reduce greenhouse emissions and its dependency on oil, yet it can't get a hold of the uranium to achieve this!

    I believe these State moretoreums will not last long. China and Japan could threaten to source coal from areas other than WA and Qld. China and Japan could refuse to buy Western Australian and Queenslander agricultural products. Or they could threaten to invade! Well that is highly highly unlikely but can you imagine if Saudi Arabia decided to shut down the Ghawar oil field? How long till you think they would be invaded to get production back onstream? I would suggest a matter of days!

    This is energy security and it is serious. Governments will fall and rise because of it in the future. Would you vote for a government that cannot guarantee energy supplies on a daily basis? Energy demand is inelastic!
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