BHP Mishap Bumps Uranium Price Up

By Melissa Pistilli-Exclusive to Uranium Investing News

BHP Billiton has announced it is declaring force majeure on its uranium contracts for customers awaiting product from the recently wounded Olympic Dam mine.

Earlier this month a mechanical failure in the mine’s main haulage shaft led to an immediate shutdown and there were speculations that the mining giant may need as many as six months to make repairs. Since then, a much smaller haulage shaft has been running but only at around 20 per cent the capacity of the main Clark shaft.

Now, it’s apparent that BHP stands to lose anywhere from $330 million to $660 million in revenue for copper, uranium andgold sales. While it’s not clear when the main haulage shaft will return to full capacity, the company does expect full production for the third quarter of the 2010 financial year.

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