Times they are a changen..............This article that just came out is basically half the story of this stock, the uranium half. The gold is starting to look good, the power is in the yellow cake. They say position is everything in life, well, Mawson is doing just that. What people are'nt seeing, is that as the price of uranium goes higher not only does Sweden's wealth increase, but the environmental concerns will be met with inovative but more costly mining methods that will allow a new attitude. At lower prices this was not possible. Here's the article:
Hunt on for Swedish uranium, but mining still far off
Mon Jan 16, 2006 11:20 AM ET
By Simon Johnson
STOCKHOLM, Jan 16 (Reuters) - Mining companies are searching for uranium in Sweden as rising prices boost interest in excavation in the Nordic country, but mining the metal used as fuel in nuclear reactors may be a long way off.
Over the last few months, Canadian firm Mawson Resources has has been granted licences to explore for uranium in northern Sweden. Canada's Continental Precious Minerals (CZQ.V: Quote, Profile, Research) has also staked claims to search for uranium.
Sweden gets about 50 percent of its energy from nuclear plants and imports around 1,500 tonnes of uranium oxide per year, but voted in 1980 to phase out nuclear power.
While the law states that companies can explore for uranium, they need government permission to mine and the centre-left Social Democratic party is against it.
Mawson's managing director in Sweden Folke Soderstrom said the company was well aware of the situation, but that things could change.
"We all know that we don't have enough oil. Something is going to have to happen in the future," he said. "This is a good option for Sweden because it has lots of uranium. We could use it or it could be sold."
Mawson's latest claim, at Tasjo in northern Sweden, "has the potential to host a world-class uranium deposit," Michael Hudson, the company's chief executive said.
The Tasjo field is estimated to contain 104 to 116 million pounds of uranium metal, according to Mawson.
MUSHROOMING INTEREST
The upturn in uranium exploration comes at a time when worries about greenhouse gas emissions and their contribution to global warming are reigniting interest in nuclear energy.
Finland recently decided to build its fifth nuclear reactor. Britain is reconsidering its nuclear policy in order to meet emissions targets. China plans 30 new nuclear plants and India aims for a big expansion in nuclear power.
Rising demand is reflected in prices. Spot uranium was trading at around $36.50 per pound last week up from $8-10/lb three or four years ago, according to the Ux Consulting (UxC) website, a leading publisher of uranium prices.
Uranium could be a valuable export for Sweden, where mining of gold and base metals is enjoying a revival thanks to rising prices, but the current government is not enthusiastic.
Ulrica Messing, Minister for Communications and Regional Policy, who would make a decision on uranium mining, poured cold water on hopes of a change of heart.
"I would say that getting permission to mine is completely ruled out for the company," she told daily Dagens Nyheter last week.
But all may not be lost for would-be uranium miners.
The ruling Social Democrats face re-election in September with polls showing the race is too close to call. The opposition bloc is split on nuclear power, but surveys show ordinary Swedes have now turned positive.
"Sweden has a large amount of uranium," Jan-Olof Hedstrom, head of the Mining Inspectorate of Sweden, said.
"It is a political question whether to mine it or not."
A mine could be operative in 5-10 years if the political will was there, said Magnus Ericsson, head of the Raw Materials Group, a Swedish mining consultancy.
"There are a few well-known, large, low-grade deposits," he said.
Mawson itself is unfazed by the government's cool attitude.
"We knew the situation from the start," said Soderstrom.
"We don't mine, we just find. We want to be on the stage as you never know what will happen."