BHP Billiton’s Cut In Uranium Market Excites Executives

The Australian reported BHP Billiton’s (NYSE:BHP,ASX:BHP) decision to scale back a $US30 billion ($28.9bn) expansion of its Olympic Dam mine and sell its Yeelirrie uranium deposit cheered uranium executives.

As quoted in the market news:

Potential for a flood of new uranium supply from Olympic Dam coming on to the market towards the end of the decade has long spooked investors and contributed to the spot price of U308, the most actively traded compound of the nuclear fuel, staying below $US50 a pound mostly since the Fukushima nuclear crisis in Japan last year.

Analysis from Morgan Stanley earlier this year signalled that greater production from Olympic Dam would weigh heavily on the pricing threshold that aspiring miners require to bring new mines on stream – known as the incentive price.

Click here to read the full Australian report.

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Peninsula Energy (ASX:PEN) is set to be the ASX’s next uranium producer. Its flagship Lance Projects in Wyoming is headed towards production in 2015, with purchasing contracts secured for 2015 to 2024.

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