Lots of spoils in uranium -

You'D think the uranium mining sector would be worried about the headlines: they say we risk an Asia-Pacific arms race if Australia processes uranium.
The funny thing is, the 30 uranium companies listed on the Stock Exchange are barely aware of the rumpus - the only thing they know for sure is the debate over mining uranium is over and the miners have won.
As politicians get excited about whether Australia should enrich uranium (the raw material for nuclear power) or store the world's nuclear waste, the miners are paying no attention because these developments are simply not going to happen. Commodities such as copper and zinc have been mined in Australia for generations and still all we do is dig it and ship it. Uranium will be no different.
Just last week the three mines policy that had sedated the uranium sector since the Hawke era quietly fell in a heap. On Tuesday the board of Canadian mining multinational SXR Uranium One approved its latest big project - a new uranium mine called Honeymoon in South Australia. SXR signed off on it because it already knows the Rann government will give the green light to the application.
So do we now have a four mines policy? Paul Sutherland, chairman of the SA Chamber of Mines says: "Three mines, four mines, it's nonsense to talk like this - the number of mines will depend on new discoveries."
And the more companies that are out there exploring for uranium, the more likely a new discovery will take place. With the price of uranium rising relentlessly, the outlook for the string of highly speculative uranium stocks on the ASX remains promising. In fact the commodity market correction in May barely dented the uranium sector. The price of uranium rose fourfold to $US36 a pound in the three years to December. This year, driven primarily by China's plan to build dozens of nuclear power stations, the price has risen again from $US36 to $US48.50.
"What matters to all the uranium stocks is not these debates about nuclear power in Australia but the outlook for uranium prices around the world - and the outlook is very good," says Paul Steven, a mining analyst at Montagu stockbrokers in Perth.
The real issue for uranium investors is the lack of choice. On the ASX there are dozens of uranium explorers but there is only one Australian uranium producer that's directly open to stockmarket investors - BHP Billiton. The other three uranium mines are controlled by foreign companies. Moreover, while exploration stocks regularly race higher in price, the BHP stock price is flat. What is that old mining joke? Never spoil a good exploration prospect by drilling a hole.
James Kirby is editor of Eureka Report at eurekareport.com.au
Jk@eurekareport.com.au