{"id":25238,"date":"2011-11-15T22:28:15","date_gmt":"2011-11-16T03:28:15","guid":{"rendered":"http:\/\/countingpips.com\/fx\/2011\/11\/15\/lifting-the-ban-on-uranium-exports-could-make-these-two-miners-go-boom\/"},"modified":"2011-11-15T22:28:15","modified_gmt":"2011-11-16T03:28:15","slug":"lifting-the-ban-on-uranium-exports-could-make-these-two-miners-go-boom","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2011\/11\/15\/lifting-the-ban-on-uranium-exports-could-make-these-two-miners-go-boom\/","title":{"rendered":"Lifting the Ban on Uranium Exports Could Make These Two Miners Go Boom"},"content":{"rendered":"

By MoneyMorning.com.au<\/strong><\/p>\n

India is one of three countries in the world that has not signed the nuclear Non-Proliferation Treaty (NPT). And we (Australia) don\u2019t sell our uranium to countries that don\u2019t sign the deal.<\/p>\n

But that might be set to change…<\/p>\n

Yesterday Julia Gillard said she\u2019ll push to lift the export ban.<\/p>\n

This is one of the first things Tony Abbott said he would do if he got in power. So there\u2019s a chance \u2013 a good chance \u2013 she\u2019ll get the support she needs to push it through.<\/span><\/p>\n

But this is old news in the US, Russia, France and China. They\u2019ve sold their hot rocks to India since 2008 under the \u2018<\/em>Nuclear Suppliers Group\u2019 deal.<\/p>\n

It\u2019s time we caught up. India could give a big boost to our small uranium sector.<\/p>\n

There might only be three mines operating in Australia. But last year they exported one sixth of the world\u2019s nuclear fuel. And that brought in $900 million to the Australian economy.<\/p>\n

Within the next three years, the Australian Bureau of Agricultural Resources and Economic Sciences [ABARES] expects our exports to jump 40% to reach 14,000 tonnes.<\/p>\n

That\u2019s based on demand from our current export partners, like the US and Europe. Not India.<\/p>\n

In fact, the Australian Uranium Association reckons sales of uranium could bring $14 billion to the economy by 2030. Not counting India.<\/p>\n

So just imagine how selling to India could see the volume and the export value rise. And what that could do to the share price of small uranium miners…<\/p>\n

(On yesterday\u2019s news alone, a lot of these miners on the ASX saw gains of 10%… Small caps Deep Yellow [ASX: DYL] and Peninsula Energy [ASX:PEN] leapt by 20%<\/em>.)<\/p>\n

Within 10 years, India will have 12 more nuclear plants. That would see it need 2,000 tonnes of fuel a year \u2013 up from 450 tonnes today.<\/p>\n

The extra 1,500 tonnes of fuel has to come from somewhere. And if it\u2019s Australia, you \u2013 as an investor \u2013 could set yourself up for a windfall profit.<\/p>\n

So what do you look for?<\/p>\n

In the short term, early stage explorers and developers. Why? Well, the developed companies already have contracts to sell the uranium they produce.<\/p>\n

In fact, there\u2019s one small miner the Indians have already taken a chance on.<\/p>\n

Three years ago, Indian company Reliance Industry pumped $3.45 million into Uranium Exploration Australia Ltd [ASX: UXA].\u00a0 It did so in the hope that one day Australia would lift the trading ban.<\/p>\n

This gamble may be about to pay off.<\/p>\n

If the government lifts the ban on exports to India, Reliance Industry won\u2019t be the last company that invests in Aussie uranium.<\/p>\n

That\u2019s why now could be a good time to scour the ASX for small uranium stocks…<\/p>\n

Shae Smith<\/strong>
\nMoney Morning Australia<\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nLifting the Ban on Uranium Exports Could Make These Two Miners Go Boom <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au India is one of three countries in the world that has not signed the nuclear Non-Proliferation Treaty (NPT). And we (Australia) don\u2019t sell our uranium to countries that don\u2019t sign the deal. But that might be set to change… Yesterday Julia Gillard said she\u2019ll push to lift the export ban. This is one … <\/p>\n

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