More on Australium UraniumA fledgling South Australian uranium explorer says investment in the market should quickly bounce back after falling in response to Labor's reconfirmation of its no new mines policy.
On the weekend the SA Labor Party endorsed its policy to block new uranium mines until 2010, reportedly causing a slump in the share prices of several junior explorers.
Adelaide-based company Southern Gold has created a uranium-specific subsidiary, Southern Uranium, which is set to begin exploratory drilling on northern Eyre Peninsula in the next fortnight.
Managing director Stephen Biggins says he is confident the State Government strongly supports the uranium industry and investment will remain strong.
"I think the market's perhaps overreacting to, I think it was expecting a little bit more noise from the State Government but essentially the situation hasn't changed, so I think this sort of short-term fluctuation will even itself out and we'll go back to the strong fundamentals for developing the uranium exploration and mining industry in South Australia," he said.
"It may have an impact, but I also believe the comments from the federal shadow minister for mines, who was suggesting that the Labor Party, both at a federal level and we know from a state level, do consider the expansion of Australia's uranium industry to be one that will be addressed, that it can't ignore." -Oct. 14, 2005