China’s new 5-year plan brilliant news for mining

Two reports out on Thursday suggest better times ahead for the uranium mining industry. The Globe and Mail quotes Tim Gitzel the new chief executive of Cameco Corp. – the world’s largest producer – who is taking the job on Friday as saying the current slump in uranium prices is a chance for the company to take another look at acquisitions. The Financial Post reports that RBC Capital Markets believe uranium price weakness will be shortlived and that China, India and South Korea are maintaining their nuclear build plans while Saudi Arabia, the United Arab Emirates, Turkey and Vietnam have all announced new nuclear plans.

BusinessDay reports on Wednesday Rio Tinto vowed not to abandon its uranium ambitions, despite conceding the recent crisis at the Fukushima nuclear power plant would slow growth in the uranium mining and nuclear power sectors for several years. Nuclear energy represents about 14% of global electricity and is set grow: 25 new plants are currently under construction in China and some 100 are on the drawing board to add to the 400 operating around the world. Uranium prices fell immediately following the Japan earthquake, but have since recovered to around US$55 per pound.

China’s massive appetite for commodities is creating concerns for the global economy, the environment and workers in other countries. In a series of reports, VOA is looking at the economic power modern China wields. Chinese government and company officials are signing agreements at a dizzying pace around the world, including in places where few other foreigners invest.

Cameco invests third tranche investment of $5 million for further development of Uranium Equities’ PhosEnergy Process. Demonstration Plant construction completed and undergoing final commissioning for the recovery of uranium as a by-product of phosphate fertiliser production.

West Australia's Labor Party says it will ban uranium mining if it gets elected in 2013. The announcement came Friday in the form of a motion by state AMWU secretary Steve McCartney. According to ABC News: The move is set to anger Federal Resource Minister Martin Ferguson, who called the policy ridiculous last month, warning the position is not sustainable and means the state will miss out on funds for schools, education and roads.

Solitaire Minerals Corp. (TSX VENTURE:SLT) reports that Terra Ventures Inc. (TSX VENTURE:TAS) has commenced a diamond drilling programs on the Wheeler River uranium properties, adjoining the Denison Mines property and the Phoenix Zone, in the Athabasca Basin of Saskatchewan.

The head of Denison Mines (DML.TO: Quote) said on Tuesday he is frustrated by the U.S. government's move to extend a ban on mining on 1 million acres of federal lands near the Grand Canyon, though the impact of the ban on his company remains unclear. In an interview with Reuters, Chief Executive Ron Hochstein said that while three of its Arizona Strip projects are unaffected, Denison is still looking into whether the six-month extension announced on Monday will have an impact on the development of its EZ Complex uranium deposits in Arizona.

While the Obama Administration extended its emergency ban on new mining claims around the Grand Canyon only until December 20, 2011, statements made by federal officials at a press conference at Mather Point in the Grand Canyon National Park Monday indicate the ban will probably be permanent. Although U.S. Secretary of the Interior Ken Salazar repeatedly stressed that mining projects currently in the regulatory pipeline remain alive and viable, fears of possible contamination of the Grand Canyon watershed were repeatedly stressed by federal officials speaking during the news conference. Image of Secretary of the Interior Ken Salazar at the Statue of Liberty is from Wikipedia.

U.S. Secretary of the Interior Ken Salazar is expected to announce this morning at 10 a.m. PDT the Obama Administration's decision regarding the extension of a 1-million acre mining ban around the Grand Canyon for 20 years. In 2009 Salazar ordered a two-year time-out from all new mining claims in the Arizona Strip near the Grand Canyon.