DEPARTMENT OF MANAGEMENT

TERM PAPER REPORT

COUNTRY/PRODUCT

AUSTRALIA / URANIUM

Submitted By:
Raman kumar

Roll No:
RT-1804-A-03

Registration No:
10808052

Submitted To:
Ms. Avneet kaur (LIM)

DEPARTMENT OF MANAGEMENT
LOVELY PROFESSIONAL UNIVERSITY
PHAGWARA(2010)

Acknowledgement
 I sincerely feel that the credit of this term paper could not be narrowed
to only one individual as the whole work is outcome of integrated efforts
of all those concerned with it through whose cooperation and effective
guidance I could achieve its completion.

I wish to place my profound indebtness and deep sense of obligation to

Ms Avneet kaur Senior lecturer Lovely Professional University for
providing me with the opportunity to work on such an interesting topic. I
also want to pay my gratitude and sincere thanks to my esteemed sir for
being supportive and lenient during the entire tenure of this term paper.

When emotions are involved words fail to mean. My heart full sincere
gratitude to my parents, who have supported, encouraged and helped me
throughout my life and academic career.

Raman kumar

COUNTRY & PRODUCT PROFILE

Australian uranium industry has become one of the world’s major producers and exporters of
uranium.Australia is well described in the global uranium industry as the “lucky country” with its
vast low-cost uranium resources of 1,347,877 tons of known recoverable resources. This is in
comparison to Kazakhstan and Canada, of which Australia has 1.4 times and 2.6 times the
quantity of recoverable resources, respectively. Uranium is a naturally occurring radioactive
element. While traces of uranium occur almost everywhere on Earth, the highest concentration
is found in the Earth's crust. For example, there are about 3 milligrams of uranium per tonne of
sea water, and up to 4 grams per tonne of Australian coal. The rocks that are mined for uranium
in Australia contain about 3 kilograms of uranium per tonne.Uranium has only become valuable
since the explosion of the first atomic bomb in 1945, during World War II. This explosion
confirmed the theory that energy could be released by splitting uranium atoms. The amount of
energy released is calculated by using Einstein's famous equation, E = mc2 .Uranium is a very
high-grade energy source. In practice, about 120,000 tonnes of black coal (350,000 of brown
coal) would need to be burnt to get as much energy as could be obtained from 1 tonne of
uranium fuel, of which 35 kilograms is fissionable. It takes 140 tonnes of uranium ore to make
27 tonnes of enriched uranium fuel, of which 1 tonne is fissionable. Most of the world's mined
uranium (and all of Australia's) is used to generate electricity in nuclear power stations. A
controlled atomic process produces heat, which converts water to steam to drive the turbines
which generate electricity.Australia does not generate any nuclear power but does mine and
export uranium. Australian mines provide about 22 per cent of the world's uranium, second only
to Canada. In 2007-08 Australia produced more than 10,000 tonnes of uranium oxide,
generating over $A887 million of export revenue.Australian uranium goes only to countries that
undertake to use it solely for peaceful purposes. Many of these countries have insufficient
supplies of coal or hydroelectricity or choose to use nuclear energy because it is more
economical and it reduces atmospheric pollution.Mining in Australia's remote areas can be
controversial when it is carried out in places that have great significance for Aboriginal people.
The question of Aboriginal land rights is a complex one. Some areas in many States have now
reverted to Aboriginal title, meaning that the Aboriginal people in the area are, as a group, the
legal owners of the land, which they may then lease to governments, individuals or
corporations.In September 2002 the company responsible for the Jabiluka mine site in the
Northern Territory announced that the mine would not go ahead without the consent of the local
Aboriginal people. Uranium mining in Australia is an emotive issue, throwing the States into
conflict with the Commonwealth, environmentalists into conflict with each other, and sounding
the clarion of hyperbole wherever discussed. Western Australia, for largely political reasons, has
never brought a uranium mine into full production, despite a number of promising reserves. For
the past two decades uranium has been in the dog box and savvy politicians have acted in line
with public pressures to prevent the expansion of mining. As the global and national climate is
shifting however, uranium is regaining credibility as a desirable energy source, and interest in
uranium exploration in WA is climbing. New nuclear power technologies, the increasing cost of
key fossil fuels and an ever more urgent cry to dramatically cut greenhouse gas emissions have
changed the imperatives in the nuclear debate. Amidst this climate of speculation and
investment, Western Australia will undoubtedly be called upon to defend its current "no
uranium" policy. The majority of the world's proven uranium reserves, some 2 million tonnes,
are located in Australia. Other uranium reserves are located in Canada, Kazakhstan, Namibia,
Niger, South Africa, Uzbekistan, the USA and Russia. While Australia has the largest reserves,
Canada is the largest uranium producer. Most Australian uranium is located in South
Australia with the Olympic Dam mine in Roxby Downs South Australia, being the largest single
reserve (containing 392,000 tonnes of uranium).(1) Other operational mines in Australia
are Ranger in the Northern Territory, and Beverley in South Australia. A third South Australian
mine, Honeymoon, is currently entering production.There are five known major uranium
prospects in Western Australia: the Kintyre Ore Deposit in the Rudall Region in the Pilbara
(35,000 tonnes), the Yeelirrie Deposit located between Wiluna and Leinster - Australia's third
largest reserve (52,000 tonnes); Manyingee 85km south of Onslow (9500 tonnes); Oobagooma,
a resource 75km northeast of Derby (8-12,000 tonnes) and the Lake Way and Centipede
deposits near Wiluna, (4000 and 4960 tonnes respectively). Together these deposits comprise
about 25% of Australia's uranium resources, or 5-10% of known world reserves.

PRODUCT DESCRIPTION IN DETAIL

Uranium Australia Ltd (UAU) is a uranium exploration company with world class uranium
projects in the Northern Territory and Western Australia including the Batchelor project within
the Rum Jungle Mineral Field near Darwin (RJMF). RJMF is the location of several high grade
uranium deposits and mines and is the oldest uranium producing region in Australia . It is
considered by experts to be the most prospective area for near surface high grade
unconformity style uranium deposits. Uranium Australia ’s Batchelor project extends for 20 km
from the pit wall of the largest uranium mine within Rum Jungle Mineral Field (Rum Jungle
Creek South) along the uranium bearing contact between Coomalie Dolostone and the Whites
Formation which hosts all major uranium mineralisation within the Rum Jungle Mineral
Field. Korab holds a number of shares in UAU as a strategic stake. It has been proposed that
these UAU shares will be distributed for free to Korab shareholders and that following this
distribution UAU will undertake an IPO to list on ASX .Korab will be sending out a notice of the
meeting to obtain shareholder approval for this distribution shortly. All Korabshareholders
holding shares on the record date will be entitled to participate on equal terms in the distribution
and following the approval of the distribution will receive approximately 1.33 free shares in UAU
for each Korab share they hold. The record date will be a date in the future and will be provided
in the notice of the meeting.UAU has received an in principle advice that should UAU seek
admission to the ASX , ASX will be likely not toimpose escrow provisions on the UAU shares
distributed to Korab shareholders (other than the shares distributed to directors, promoters and
related parties). The effect of this would be that the UAU shares distributed to Korab
shareholders would be free to trade from commencement of trading of UAU on the ASX.Korab
has been advised by UAU that it has received expressions of interest from brokers to
sponsor/underwrite a $6 million IPO of UAU on ASX . The IPO of UAU is planned for October
2009. UAU has further advised Korab that the issue price for the IPO will be set at 20 cents per
UAU share. Uranium Australia Ltd ( ASX reserved code: UAU) was founded in 2007 as a
uranium mining and exploration company focusing on the Northern Territory and Western
Australia . The Company has several projects with a potential to host large scale uranium
mineralisation. Two of these projects are located in the Northern Territory and five projects are
located in Western Australia .
The Company brings together an experienced management team with a strong record in the
acquisition and development of resource projects. The “Mineral Systems” approach has several
benefits. It enables the Company to explore for several styles of uranium mineralisation as
opposed to focusing on a single mineralisation model such as surficial calcrete-based or
unconformity related uranium. In addition, the Company increases the chances for discovering
an entirely new zone or a different style of mineralisation by utilising the available data in a more
holistic fashion. In the light of this approach, the highest priority projects are the Batchelor and
Green Alligator Projects, in the Rum Jungle Mineral Field, Northern Territory. These have a
combination of ‘drill ready’ targets adjacent to known historic unconformity-style uranium
mineralisation at Rum Jungle Creek South uranium mine as well as more innovative targets,
extending eastwards along a large zone of similarly prospective rocks. In this case a “Mineral
Systems” approach is likely to be of substantial benefit in understanding the processes that
have lead to mobilisation and deposition of uranium mineralisation within the target horizon.
Furthermore, this exploration philosophy, may in fact be a necessary to enable optimal
delineation and ranking of targets.
The area encompassing the Batchelor, Uranium Australia will be focusing on the high value
unconformity related uranium mineralisation which occurs on the carbon-rich interface between
the Coomalie Dolostone and the Whites Formation (see the Figures 1 and 2 on next page).
These deposits tend to occur at shallow depths and historically had grades of between 0.2%
and 0.5% of uranium. The largest of the uranium deposits, Rum Jungle Creek South (Figure 2)
which is located on the boundary of Uranium Australia ’s ground occurred at a very shallow
depth and was mined at a grade of 0.48% uranium for approximately 9,000,000 pounds of
uranium.Australia is clearly able and willing to contribute substantially to
meetingglobal and regional uranium demand as it grows with the expansion
ofnuclear power. International Energy Agency projections suggest that whileglobal
nuclear power generation in the next decade or two will notprogress as fast as
global electricity demand, it will still grow significantly;growth in Asia will be a major
area of increased demand for sometime, notably in China and India, but also with
some expansion in SouthKorea and Japan. According to the World Nuclear
Association (WNA), in2008, over and above China’s eleven nuclear power reactors
in commercialoperation, twelve more were under construction and at leasttwelve
more were about to start construction. With China fast-tracking itsnuclear power
plans, construction of some of the latter has already begun.
Packaging
UOC is packaged in sealed 205 litre steel drums. Each drum has a tight fitting lid
which is secured to the drum
by means of a steel locking ring that is clamped by a locking ring bolt. Drums filled
with UOC are stowed
securely to international standards, within 20 foot
International Organization for Standarization (ISO ) sea freight containers by means
of a webbed Kevlarbased
strapping system, commercially known as ‘CO RDST RAP’.
This is the preferred packing method and complies with the requirements of the
International Maritime
Dangerous Goods (IMDG) code and relevant United Nations guidelines for Packing of
Cargo Transport Units.
This packing method has been formally approved by the Australian Maritime Safety
Authority (AMSA).

TARGET MARKET
➢ The Products and Service Segmentation section highlights the top Industry
products and services by industry share, demonstrating their influence over
total industry revenue, as well as providing market share on all the niche
businesses that operate within this industry.
➢ The Major Market Segments section details the industry share of key
customer (or downstream industries) and/or groups as well as giving an
indication as to which of these are the most important to the industry.
 ➢ The Industry Concentration section provides an indicator of market power
by showing the industry share of the top four industry major players. The
degree of monopolization or fragmentation of an industry.
➢ Finally, The Geographic Concentration section is sorted by "state" (Victoria,
New South Wales, Queensland, South Australia, Western Australia, Northern
Territory, Australian Capital Territory and Tasmania) and illustrates where
the majority of enterprises are located, while profiling major establishments
and concentrations.
➢ Market Size explains the size of the domestic market, as well as the size of
the export market.
➢ Linkages lists the industry's major supplier and major customer industries.
➢ Demand Determinants are key factors which are likely to cause demand to
rise or fall.

➢ The Industry Assistance section refers to any government or other measures

designed to improve the performance of this industry. The indicator trends
of this assistance are noted.
➢ The Regulation and Deregulation section has industry information regarding
regulation and/or deregulation to this The Technology and Systems section
acknowledges the latest technology and/or systems available to this
industry within the country. Technology refers to machinery and equipment
and systems refers to methods of production that enable better and more
efficient production.
➢ The Industry Volatility section refers to the frequency and magnitude of
year on year fluctuations which occur in industry output or revenue.
➢ The Globalization section gives an indication to the extent to which the
industry size is global based. Based on factors such as the level of foreign
ownership, the proportion of demand accounted for by foreign operators
and the volume of production conducted in other countriesindustry.

PRODUCTION FACILITIES
• The Current Performance section provides research analysis on performance
trends over the most recent five years, with key indicators discussed. For
example, financial trends, product trends, production volume, external events and
 internal trends that cause change. Industry trends, Market trends, Company
trends, Product trends, Supply trends, Services trends, Statistics trends, Data
trends, Performance trends, Growth trends, Size trends, Financial trends, Cost
trends, and any other major industry indicators where appropriate The Cost
Structure section details a table together with analysis of the average major costs
for a company operating in this industry as a percentage of total revenue. (eg;
rent, materials, depreciation, purchases, wages, utilities, advertising, interest).
Industry profits for the average company in the industry are also shown.
• Capital and Labor Intensity section provides a guide to the amount of capital used
in production/providing a service compared to the amount of labor in the total mix
of inputs.
• The Technology and Systems section acknowledges the latest technology and/or
systems available to this industry within the country. Technology refers to
machinery and equipment and systems refers to methods of production that
enable better and more efficient production.

Distribution strategies

➢ Ensuring that the end uses of uranium are acceptable.

➢ Environmental issues, including the contribution of nuclear power in reducing
greenhouse gas emissions and the management of nuclear wastes.Safety of reactors
and the nuclear life cycle.
➢ The local environmental and occupational health and safety issues associated with
uranium mining.
➢ Of these, Western Australia only has direct control over the regulation and control of
uranium mines in the state. All issues, however, bear on the validity of Western
Australia's continued reluctance to export uranium and are worth investigatin To require
purchasers of Australian Uranium to submit to IAEA audits to manage the security of
uranium.
 ➢ To require purchasers to abide by safeguard agreements which proscribe any military
uses, including indirect uses such as the manufacture of tritium or depleted uranium.
➢ The nuclear safeguards agreement recently signed with China reflects these policies.(3)
No safeguard agreement however, can guard against fallibility in enforcement. A
parallel could be drawn to the Australian Wheat Board managing to subvert the UN's oil
for food process for its own ends despite the apparently high level of Government
scrutiny. Security of uranium sales is not entirely dependent on Australia acting as a
watchdog. If uranium sales are confined to acknowledged and mature nuclear powers
then there is a minimal likelihood that uranium imports would be subverted into a nuclear
weapons program.

➢ It is difficult to determine if uranium is truly in a position to alleviate global dependence

upon fossil fuel combustion. There does not appear to be an international consensus on
size of the nuclear resource weighed against global power demands

➢ The current nuclear power infrastructure in place worldwide provided 16% of global
energy production in 2002.(9) To increase this percentage to 19% by 2050 would require
that nuclear capacity be trebled, or up to 1500 large power stations built.

➢ Nuclear power is not cost-competitive with coal and gas generation. A carbon emissions
trading scheme would go some way towards improving this situation, however further
cost savings including reducing the time of power plant construction, reducing the costs
of construction and reducing the operating and maintenance costs of the plants would
also be required (Table 1). These cost reductions, however, must be achieved without
compromising the

Distribution centre
There are five known major uranium distribution centre in Australia:

➢ the Kintyre Ore Deposit in the Rudall Region in the Pilbara (35,000 tonnes),

➢ the Yeelirrie Deposit located between Wiluna and Leinster - Australia's third largest
reserve (52,000 tonnes);

➢ Manyingee 85km south of Onslow (9500 tonnes); Oobagooma, a resource 75km

northeast of Derby (8-12,000 tonnes) and

➢ the Lake Way and Centipede deposits near Wiluna, (4000 and 4960 tonnes
respectively).

Together these deposits comprise about 25% of Australia's uranium resources, or 5-10% of
known world reserves.The larger deposits at Kintyre and Yeelirrie underwent extensive site
investigations and preparation for mining in the 1970s and early 1980s. Both sites were placed
on hold when the "three mines" policy was introduced in 1983, effectively suspending uranium
exports. Following a worldwide drop in uranium prices during the 1990s the Kintyre site was
largely rehabilitated.

Legal issues

➢ Present government policy is to allow uranium to be mined and exported

➢ The three mines policy was abandoned when the Coalition government was elected in
March 1996. The Coalition's policy was to develop the export potential of Australia's uranium
industry by allowing mining and export of uranium under strict international agreements
designed to prevent nuclear proliferation.
➢ Today the Ranger mine in the Northern Territory and the Olympic Dam mine in South
Australia continue to operate, but the Nabarlek mine has closed. There is now a third
uranium mine operating (Beverley), with approval given for two more mines (Honeymoon
and Four Mile). These mines are in South Australia.
➢ Uranium mining can have an impact on Aboriginal groups
➢ Mining in Australia's remote areas can be controversial when it is carried out in places that
have great significance for Aboriginal people. The question of Aboriginal land rights is a
complex one. Some areas in many States have now reverted to Aboriginal title, meaning that
the Aboriginal people in the area are, as a group,
➢ Australian Uranium Summit 2010:
➢ 2010 will be another crucial year for Australian uranium. Domestically,
we have new mines opening, a renewed focus on exploration and a
commitment from both State and Federal Governments to encourage
the development of the sector. . According to the Australian Uranium
Association, by 2030 this will generate further $460 m in State
revenue, including $200 m in royalties with a total benefit to the state
of $3.2 billion.
➢ To require purchasers to abide by safeguard agreements which proscribe any military
uses, including indirect uses such as the manufacture of tritium or depleted uranium.
➢ The nuclear safeguards agreement recently signed with China reflects these policies.(3)
No safeguard agreement however, can guard against fallibility in enforcement. A
parallel could be drawn to the Australian Wheat Board managing to subvert the UN's oil
for food process for its own ends despite the apparently high level of Government
scrutiny..
➢ The three mines policy restricted uranium mining
➢ In 1984 the federal Labor government introduced their three mines policy. It confined
Australia's uranium production to the three sites already being mined: Ranger, Nabarlek and
Olympic Dam. At the time, the mining industry felt that this unnecessarily restricted uranium
mining.
 ➢ Present government policy is to allow uranium to be mined and exported
➢ The three mines policy was abandoned when the Coalition government was elected in
March 1996. The Coalition's policy was to develop the export potential of Australia's uranium
industry by allowing mining and export of uranium under strict international agreements
designed to prevent nuclear proliferation.
➢ Federal Government seems to have WA's uranium in its sights. A proponent of
Australian uranium mining, the Commonwealth seems frustrated by WA's self-imposed
restrictions.

Transportation modes
UOC is transported worldwide by road, rail and sea. It is classed as a dangerous
good under the AustralianDangerous Goods Code (Class 7) and UN numberUN 2912.
The proper shipping name is ‘Radioactive
Material, Low Specific Activity (LSA -1) Non-Fissile orFissile - Excepted’. Within
Australia, the transportation
of UOC by road or rail from mine site to intermodal\ export facilities is regulated in
accordance with
Australian Government, state and territory legislation aswell as international
standards. Sea transport of UOC is
regulated according to international standards.International standards require that
each containerpacked with UOC bear a UN 2912 Radioactive Class 7placard and a
Radioactive Category III Yellow placard
affixed in a vertical orientation to each side wall andeach end wall of the container.
Specific documentation,
manifesting the load details, is carried in the driver’scabin of each vehicle.
Transport Plan
Each producer/shipper of UOC based in Australia has prepared an individual
Transport Plan that specifically focuses on the numerous activities and
responsibilities that need to be addressed and covered by all parties and individuals
involved in the transportation of UOC containers from their mine site to the
applicable export.a Tractor trailer truck overturned and caught fire on I-
64 near Exit 139 at Sandstone, WV, which is in Summers County. A
container containing Uranium Hexafloride, was on the truck. As a
precaution, evacuations occurred both in Sandstone and Meadow
Creek, WV. Dispatchers say that the container was not breached.
Accordingly, evacuations for both Sandstone and Meadow Creek, WV
were lifted sometime before 3:00 this morning. The driver of the
truck and a driver of an SUV that was also involved in the accident,
were transported to Summers Appalachian Regional Hospital with
unknown injuries. (State Journal August 2, 2009)
The tractor-trailer carried a Model 48Y cylinder containing
approximately 28,000 lbs [12.7 metric tonnes] of non-enriched
Uranium Hexafluoride (UF6). The shipment originated from the
Honeywell Metropolis Works facility in Metropolis IL, and was being
transported to Portsmouth, VA for shipment to URENCO in the
Netherlands. The cab of the tractor-trailer was involved in a fire that
was subsequently extinguished. The fire had no affect on the UF6
cylinder which seperated from the trailer during the accident. A
Honeywell team determined the cylinder sustained only minor
cosmetic damage, limited to one bent lifting lug. Honeywell
personnel verified that there was no visual indication of leakage,
and radiation surveys confirmed that there was no contamination or
leakage from the cylinder. URANIUMM