Uranium

Production for 1986 was 4899 t U3O8 (4154 t U), 30% greater than in 1985, mainly because of a 39% increase in production at Ranger. Exports for 1986 were 4166 t U3O8 at an average f.o.b. unit value of $40.57/lb U3O8. Private exploration expenditure for uranium in Australia during the 1985-86 fiscal year was $50.2 million. Plans were announced to increase the nominal capacity of the processing plant at Ranger from 3000 t/year U3O8 to 4500 t and later to 6000 t/year. Construction and initial mine development at Olympic Dam began in March. Production is planned for mid 1988 at an annual rate of 2000 t U3O8, 30 000 t Cu, and 90 000 oz (2800 kg) Au. The first long-term sales agreement was concluded in September 1986. At the Manyingee deposit, testing of the alkaline solution mining method was completed, and the treatment plant was dismantled. Spot market prices (in US$/lb U3O8) quoted by Nuexco were generally stable. From January-October the exchange value fluctuated from US$17.00-US$17.25; for November and December it was US$16.75. Australia's Reasonably Assured Resources of uranium recoverable at less than US$80/kg U at December 1986 were estimated as 462 000 t U, 3000 t U less than in 1985. This represents 30% of the total low-cost RAR in the WOCA (World Outside the Centrally Planned Economy Areas) countries. Australia also has 257 000 t U in the low-cost Estimated Additional Resources Category I, 29% of the WOCA countries' total resources in this category