Uranium mines 'not priority' in WA following profit downgrade, environmentalists claim
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Western Australia's peak environmental lobby group claims uranium miner Cameco is unlikely to prioritise development of its projects in the state in the wake of a quarterly profit that was lower than expected.
Cameco posted a fourth-quarter loss of CAD$62 million ($61.7 million) on Friday, partly caused by lower uranium prices.
The Canadian company, which has two projects in WA's East Pilbara and Northern Goldfields, said in a statement that in the current market environment, "it can be difficult to see beyond the weakness that has persisted for almost six years".
"However, as we look to the future, we see continued growth in reactor construction and, consequently, increasing uranium demand," Cameco chief executive and president Tim Gitzel said.
"We believe that with our focus on value and our tier-one assets, we are well positioned to seize that demand."
It also cited impairment charges of $362 million, which included a $238 million write-down on WA project Kintyre.
"Due to the weakening of the uranium market since the asset was purchased in 2008, and the budget decision not to allocate any further spend to the project, we concluded it was appropriate to recognise a further impairment charge for this asset," the report said.
The price of uranium plunged after the Fukushima disaster of 2011.
However, analysts have speculated the price will pick up in the long term due to increased demand from China.
It is also thought to be a fairly volatile commodity, with quick price turnarounds possible.
Environmental lobby claims uranium not sustainable in WA
The Conservation Council's Mia Pepper said she believed Yeelirrie and Kintyre were not likely to be producing uranium any time soon.
"They would favour increasing (activity) at their operating mines before they would open a new mine," Ms Pepper said.
"That's under a different pricing scenario so I think the Kintyre mine and the Yeelirie mine from (an) economics perspective are a very, very long way from being feasible."
Ms Pepper said she believed the costs of mining uranium in WA would prove to be too high.
"Some companies have proposed that they could mine at about $US45 (a pound) in Western Australia, we still think that's pretty unrealistic," she said.
"Cameco said that they would hope for a price of $US67 a pound.
"I mean, we're a really long way from that."
The ABC has attempted to contact Cameco for comment.
The company's Yeelirrie mine received state environmental approval last year.
The company approved a dividend of 10 cents per share on Wednesday.
Topics: uranium-mining, business-economics-and-finance, wa, kalgoorlie-6430
