2009 Uranium Conference Highlights

Source:

". . .the financial crisis has spawned a shakedown in the uranium mining industry and many of the sector's companies are already 'walking dead.'"

On Tuesday and Wednesday of this week, Paydirt magazine, an internationally circulating mining publication, hosted its fourth-annual Uranium Conference in Adelaide, South Australia. The two-day program included nuclear industry leaders, exploration and mining representatives and government officials coming together to discuss the uranium and nuclear energy industries.

Some of the topics at the 2009 conference included reports on BHP Billiton's Olympic Dam mine, the current financial crisis' impact on the uranium-mining sector and Botswana's uranium mining future.

Speaking at the conference, BGF Equities director Warwick Grigor said BHP would be better off using their cash to make acquisitions than expanding projects. "We really don't know where the end of the tunnel is in terms of this economic crisis and it would be very brave of BHP to be throwing a lot of money at that when they can buy so many other bargain-basement assets around and extend their power that way," said Grigor.

Mr. Grigor also warned conference attendees that the financial crisis has spawned a shakedown in the uranium mining industry and many of the sector's companies are already "walking dead." These "zombie companies," as Grigor calls them, are those miners with meritless properties and/or are cash-strapped; the companies created merely to jump on the uranium bandwagon when the spot price was riding high.

Recently, Mining Weekly suggested the African nation of Botswana may soon become "a second Namibia," which is well-known for its uranium mining industry and resources. Recently, about 138 prospecting licenses for the exploration of uranium were issued by the Botswana government. Exploration activity is taking place "across the length and breadth of Botswana," said Minerals Minister Ponatshego Kedikilwe.

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