This Week’s Commentary – April 28, 2007 – Good News From Australia

by JDH on April 28, 2007

Yet another ho-hum week. Last Friday I was up 13.5% on the year; today I’m up 10.9% on the year, so this week was a losing week. There were, however, two bright spots.

First, according to Bloomberg, Australia’s main opposition Labor Party has dropped its 25-year-old ban on new uranium mines, paving the way for industry expansion. You can read more about it in The Australian. This is great news for our investments with Australian holdings, including MGA.TO – Mega Uranium Ltd, LAM.TO – Laramide Resources Ltd. and UUU.V – Urasia Energy Ltd. (which is merging with SXR.TO – SXR Uranium One, Inc.).

I find the reports on the debates in Australia quite interesting, since they echo the comments made on both sides of the debate here in North America. The negative side of the debate, led by politician (and former Midnight Oil lead singer) Peter Garrett, led to such quotes as this from The Australian:

Environment spokesman Peter Garrett said he was “unapologetic” about his opposition to nuclear power and the risks of nuclear energy were greater than the benefits.

He dismissed the proposition that nuclear power could be enlisted to deal with climate change.

“Is the only way to meet this challenge it to create more nuclear waste?” he said

Huh? Every year we pump out billions of tons of toxic crap from our coal fired power plants; nuclear energy generates no greenhouse gases, and “he dismissed the proposition that nuclear power could be enlisted to deal with climate change“? Great.

Yes, it’s true that more nuclear waste will be created, and it’s true that we need effective ways to deal with it. Which leaves humanity with a choice: continue to burn fossil fuels, which contaminates the air we all breath, or use nuclear energy and generate small quantities of nuclear waste, stored in secure locations, that harms none of us.

Fortunately saner heads prevailed, and the realists in the Labor Party won the day. Three cheers for the environment!

(Yes, yes I know. They didn’t lift the ban on new uranium mines to help the environment. They did it for the money. New mines will create new jobs, which means money. However, I still like the decision).

I therefore assume that on Monday we will see an uptick in uranium stocks with mines or potential mines in Australia. I have added an Australia Uranium Board to the Buy High Sell Higher Forum, so we can all keep track of further developments.

Strategic Metals Ltd.

In other good news, SMD.V – Strategic Metals Ltd. was up 5% this week on more announcements of joint ventures. I have written about it extensively, so please read my detailed Strategic Metals Ltd. comments, and then keep on buying!

Thanks for your contributions this week; please continue to post your thoughts on the Buy High Sell Higher Forum, and let’s hope our Monday is a good one!