5 August 2015
Former BC Iron boss Mike Young is spruiking a new uranium development in Western Australia which he says could become the fifth largest in Australia.
Mr Young said Vimy Resources’ Mulga Rock development had moved from the seventh to fifth largest uranium deposit in Australia following Energy Resources of Australia’s (ERA) recent decision to shelve its Northern Territory projects in a sluggish uranium market.
“Before ERA’s announcement, Mulga Rock was the seventh largest deposit in Australia and now it’s the fifth largest,” Mr Young told the Diggers and Dealers mining conference on Wednesday.
“We think long-term prices are going to be at least $US75 a pound.”
Mr Young also said the West Australian state labor opposition’s position against uranium mining would not affect the viability of the project.
“Once we have our mine approvals, they won’t be in a position to stop us,” he said.
Vimy is banking on China becoming the world’s biggest energy importer as it looks to build dozens of nuclear reactors over the next 15 years.
“That’s going to drive prices,” he said.
“A lot of supply needs to come on over the next few years.”
Mr Young predicts that by 2017 the uranium price will be around $US70 a pound.
He said the company’s Mulga Rock project, which was discovered by the Japanese in the 1980s, would have a 16 year mine life.
Vimy plans to make an investment decision on commencing works on the mine in the second half of 2016.
Courtesy of the Australian