Consolidation expected in Australia's uranium sector
: "A high level of consolidation among uranium players in the short to medium term is likely, as the global uranium sector struggles to discover greenfield deposits to keep pace with growing demand.

Toro Energy Ltd managing director Greg Hall said there were currently upwards of 60 uranium explorers operating in Australia.

'Not all of these will find and develop a uranium mine and we can expect significant consolidation to start occurring,' Mr Hall said.

'A key upside of consolidation will be that remaining uranium exploration companies can build greater financial strength and talent pools, and this in itself will enhance prospects of commercial discoveries able to service world demand.'

Mr Hall said only 55-60 per cent of current global uranium consumption was from newly mined reserves - the remainder from a diminishing stock of uranium inventories and reprocessed material, much if it ex-military.

'These secondary sources are rapidly drying up and are being outstripped by new demand,' Mr Hall said.

'Global uranium mine production must therefore increase to around 80 per cent of uranium demand, and even with major expansions planned in Canada and at Olympic Dam in South Australia - moving from 5,000 to 15,000 tonnes of uranium per year - the shortfall is marked.

'From 2006 on, nuclear utilities around the world are faced for the first time with genuine concerns about where their supply will come from for the next 5-10 years for their billion dollar investments - an issue which for the past 20 years when supply far exceeded demand, they have not had to worry about.'







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Tuesday 2 May, 2006

TORO ENERGY FORECA"