Australian Uranium BHP Sale to the Tune of $430 Million

When taking a look at market value for the world’s uranium, BHP in Australia is the largest. The decision for BHP to sell their South Australian Yeelirrie uranium mine to Cameco Corp. was based on a number of factors.

The original BHP plan was to expand their mining facilities, Olympic Dam uranium and copper mine, with an infusion of $30 billion dollars. Due to falling prices and increases in construction costs, this idea was scrapped. The environmental topic also played an important role, as countries around the world are reconsidering nuclear as an energy option, due to the earthquakes in Japan that wreaked havoc in their nuclear power plants. The weakened condition of uranium as a whole, combined with the company’s focus on their other mining facilities led to the sale.

Sources:
http://www.foxbusiness.com/news/2012/08/26/bhp-sells-australian-uranium-deposit-to-cameco-for-430-million/
http://www.businessweek.com/news/2012-08-31/cameco-hunts-for-uranium-mines-while-bhp-sells-corporate-canada

The information supplied in this article is not to be considered as medical advice and is for educational purposes only.