Aussie election shouldn’t change mining policy

Re-election of the Labor Party in Australia in the recent national election should mean a continuation of the current policy governing the mining industry in that nation. While the final seat tally had not been determined at presstime, the Labor Party led by Bob Hawke appeared to have won a fourth consecutive term in office.

Labor’s policy regarding uranium is geared to restricting exports of the mineral. A 3-mines policy works to limit production of uranium, while a floor-price policy has worked in large part because of long-term contracts between the producers and their clients. The relatively low world spot price of uranium today may lead to an easing of the price guideline.

Australia’s uranium reserves are said to be huge in comparison with current production. The Uranium Exchange Co. in the U.S. recently reported Australia has the potential to produce about 50 million lb. uranium annually. Australia currently produces less than 10 million lb. per year.

Introduction of a tax on Australian gold mining operations is set to come into play at the start of 1991. Gold producers are not currently being taxed on their profits.