Australia Uranium Explorers Shift Gear as Ban Ends

Australian uranium exploration showed new signs of life on Monday, a day after the country's biggest mining state declared an end to its ban on mining for the nuclear fuel.

Explorers Crossland Uranium Mines Ltd and Toro Energy Ltd both signalled they would step up activity in Western Australia after local elections led to a change of state government at the weekend and a reversal of its uranium policy.

The conservative Liberal Party, which backs uranium mining, took control of state government on Sunday after the left-leaning Labor party lost its majority at 6 September elections. The Liberals aim to govern with the support of the rural-based National party.

Australia, with 40% of the world's known uranium reserves, is the world's second largest uranium supplier behind Canada. While the national government supports uranium mining and exports, it is up to each of the six states to approve projects.

On Monday, the morning after after the Liberals claimed power, Crossland said it would now put increased emphasis on its Crossland Creek project in the state's north.

"Crossland will be allocating additional resources to our Crossland Creek project in the West Kimberley region now that there will be a W.A. government that says it will not impose a ban on uranium mining," chief executive Geoff Eupene said.

The change of government in Western Australia comes at a time of booming international demand for uranium and nuclear energy, with the value of Australian uranium exports up 34% in 2007/08 compared with the previous year.

Fellow explorer Toro Energy said on Monday it was now free to plan work on its Wiluna prospect, one of the more advanced uranium projects in the state, about 1,000km (600 miles) northeast of Perth.

"We can now focus on enhancing the resource, environmental, economics, health and technical analysis," Toro Energy Managing Director Greg Hall said.

Australia exported 10,151 tons of uranium oxide in the past year from the country's three operating mines, Ranger, owned by Rio Tinto Ltd unit Energy Resources Australia, Olympic Dam, owned by BHP Billiton, and Beverley, owned by a local unit of General Atomics of the United States.

The Australian Uranium Association said spending on uranium exploration doubled in 2007/08 compared to the previous year, with exploration spending in Western Australia up A$15.6m ($12.8m) in the year to A$26.8m.

Crossland, with its joint-venture partner Pancontinental Uranium Corp of Canada, said the Crossland Creek project had previously been considered only as a copper prospect, until the results of a new survey late last year.

Eupene said Crossland was also in the process of acquiring the Gibb South EL uranium prospect, from Thundelarra Exploration Ltd, which would become part of the venture with Pancontinental.

by James Grubel, Reuters.