Mega Uranium deal with Japanese partners enhances State's future

Western Australia's enormous potential to develop an energy-secure future took a step forward today with the official signing of a joint venture between Mega Uranium and its Japanese investors.

Mines and Petroleum Minister Norman Moore said Mega Uranium expected to have the State's first operational uranium mine up and running by late 2011.

"Mega Uranium has reached a US$49million agreement with Japanese Australian Uranium Resources Development Company (JAURD) and ITOCHU Minerals Energy Australia for a 35 per cent stake in its Lake Maitland project," Mr Moore said.

"This deal is a clear indication that WA's uranium sector is highly valuable and has great potential to generate jobs and enhance the State's economy.

"It is satisfying to see that in the nine months since the State Government lifted the uranium mining ban, foreign investors have recognised the enormous potential of WA's uranium resources.

"The Lake Maitland development will further develop the resources sector and is a step forward in safeguarding the environment by providing an alternative energy source to the fossil fuels used by more traditional power-generating facilities."

The Minister was pleased to see the involvement of Japanese companies in the deal.

"The large investment from these companies, one a collective of Japanese electricity providers and the other the world's second biggest uranium trading house, indicates that uranium is highly prized worldwide," he said.

"In the short time since the uranium mining ban was lifted, WA already has three uranium mines planned for the next two to three years with more to come."

Mr Moore said the State Government would use the world's best practice to regulate the State's uranium sector.

"Uranium mining has occurred in Australia for 30 years without major incident and I am confident that it will do so in WA," he said.

"The State Government will ensure that no uranium mine begins operation unless it has the highest possible safety and environmental standards in place."