Level 1, 499 St Kilda Road, Melbourne Vic 3004 ABN. 30 005 503 828 T: +61 3 8616 0440 F: +61 3 8616 0441 W: www.aua.org.au An update on the uranium industry:

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Presentation transcript:

Level 1, 499 St Kilda Road, Melbourne Vic 3004 ABN T: F: W: An update on the uranium industry: The current paradox and its resolution Michael Angwin Chief Executive Officer Darwin Mining Club 12 June 2013

The current paradox Supportive politics coexists with negative economics

The negative economics Resource industry challenges Relatively fast increases in Australian capital costs Commodity rivals with competitive cost structures Delays in approvals add costs Uranium industry challenges Uncertainty following Fukushima Low spot prices Access to capital

Supportive politics Long term political support in NT and SA National bipartisanship since 2007 Newly supportive State policies WA, Queensland, NSW Exports to India

Australia’s uranium policy In the national interest Expansion of production Exports to selected countries A platform for building regional relationships

How will this paradox be resolved? (1) Short term Demand will exceed supply later this decade Uranium spot price: US$70/pound by 2018

How will this paradox be resolved (2) Long term By growth in the nuclear power industry of by 25% to 100% by 2030s

Nuclear outlook: IEA GW(e)583 GW(e)

Nuclear outlook: IAEA Low estimate368.8 GW(e) (actual) 456 Gw(e) High estimate740 Gw(e)

Nuclear power in 2035

Realising opportunity, raising competitiveness Align domestic production and export policies Treat uranium on merit

Fukushima: UNSCEAR findings UNSCEAR finds no health risks attributable to Fukushima accident

Level 1, 499 St Kilda Road, Melbourne Vic 3004 ABN T: F: W: An update on the uranium industry: The current paradox and its resolution Michael Angwin Chief Executive Officer Darwin Mining Club 12 June 2013