Uranium is a very unique commodity that only could be found in a handful of countries. This is in large part due to the fact that its concentrated in only certain parts of the world despite it being an abundance source. Yet, according to the World Nuclear Association, Uranium mines are operated in approximately 20 countries but 58% of the Uranium comes from 10 mines in six countries. Of those six countries, Kazakhstan, Australia and Canada make up more than 50% of the total Uranium produced. Thus, if you are interested in investing in a uranium company it will most likely come from these countries. Below is a great starting point for researching Australian Uranium Miners.
When researching Australian uranium miners the first thing you will realize is that there are large miners and then there are small miners. The small Australian uranium mining companies are way too speculative and should be avoided as some of these companies have a leveraged balance sheet and are operating at a loss.
Australian was once the largest uranium producer in the world until it was surpassed by Kazakhstan in 2009. Most of the countries reserves are located in Souther Australia.
Australian Uranium Mining Companies
- BHP Billition (BHP)- BHP Billition’s Olympic Dam operations are among the largest in the world and is Australia’s largest underground mine which BHP plans to expand in the near future. For its fiscal year, BHP produced 4,045 tonnes of uranium, a 77% increase from the previous year. The success is due to the success of Olympic Dam operations.
- Rio Tinto (RIO)- Runs the Ranger Uranium Mine in Australia and is looking to expand beyond their two mines as part of a program to increase its energy portfolio. Rio’s Energy Resources of America produced 8.6 million pounds of uranium. Total uranium production for 2010 was 16.6 million pounds.
- Paladin Energy LTD (ASX:PDN)- Is the 9th largest uranium producers in the world with a couple of mines in Eastern Africa. Its main mines are the Kayelekera Mine in Malawi and the Langer Heinrich Mine in Namibia. The two mines produced approximately 145 mT of uranium but has made several acquisitions recently that puts further production in development.
- Toro Energy Limited (ASX: TOE)- Too speculative in our opinion. Has several applications outstanding to start mining but regulatory approvals could go either way causing wild fluctions in the stock thus stay away.
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