May 01 2007
Australian Mining Decision
For the last twenty-five years, Australia has had a national law that limits the number of Uranium mines in operation to three. Three shall be the number of the mining and the mining shall be no more than three (to paraphrase Monty Python and the Holy Grail). On Saturday, the Australian parliament voted to overturn this law, which should allow mining in Uranium-rich areas like Queensland and Western Australia. Many people expected Uranium mining companies with interests in Australia to skyrocket. Unfortunately, the opposite happened.
The problem is that even though the Australian parliament voted to lift the national ban on Uranium mining, the individual state governments still have their own local ban. Queensland Premier Peter Beattie has gone on record stating that he would not lift the ban in his state, which is the exact opposite of what he said before the vote looked like it had a chance. The national vote will put pressure on Queensland and Western Australia to open up to new mining, but I don’t think it will happen overnight.
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Australia, mining stocks, stocks, Uranium, uranium mines, uranium stocks
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