“We’ve had discussions with China about potential uranium sales,” a BHP Billiton spokeswoman said. “We expect we will make sales in the near future.”
Delivery in 2009, from current Olympic Dam production, would test the waters before these bigger plans came to the fore.
The volumes are estimated to be less, with most of Olympic Dam’s production tied up in long-term contracts at prices well below the spot market.
However from 2012, an extensive amount of Olympic Dam’s 4000 tonnes a year of production will be free of long-term contracts.
In 2008, BHP Billiton said it was in talks with customers to develop an improved price discovery mechanism which will meet the requirements of both consumers and producers.
Martin Ferguson, Australian federal resources minister, has reinforced his support for further exports to China.
“Exports of Australian uranium to China can provide long-term economic benefit to Australia and also make a major contribution to the global effort to reduce greenhouse gas emissions,” a spokesman said.
“Concerns relating to energy security and climate change are set to drive a significant increase in global demand for uranium and the government strongly supports the expansion of Australia’s uranium mining industry.”
Australia has around one quarter of the world’s uranium resources, with Olympic Dam providing the huge majority. The mine has the huge single uranium resource, with around 2.4 million tonnes of uranium oxide.
