FOR PRESS : 607A

WORLD DEMAND FOR URANIUM Statement by Senator the Hon. W.H. Spooner, M.,M. Minister for National Development

The world supply of uranium had shown a rapid increase in

recent years, but it would eventually all be needed for power

generation purposes,  the Minister for National Development said

to-day. Senator Spooner was commenting on a statement by the United  Kingdom Atomic Energy Authority that the world over-supply of  uranium was likely to last until the 1960’s, The increase in supplies was mainly due to the discovery and

development of new reserves in North America and South Africa.

In addition improved efficiency in recovery methods had made the  treatment of relatively low-grade deposits possible.

These developments had enabled the United States to achieve

a high degree of self-sufficiency, while Canada and South Africa  were seeking markets for large exportable surpluses. Senator  Spooner explained that the world demand in past years had been  primarily military. The military demand was unliekly to increase

further and production had outstripped requirements.

Also requirements by the United Kingdom - a large consumer of  uranium - had been somewhat reduced by the slowing down of the  United Kingdom Nuclear Power Programme and the Authority was not

proposing for the present to make any additional commitments for

the purchase of uranium. The United States had already indicated

that it was not entering into any new foreign contracts.

Australia's entire uranium production had been sold forward .

to the Combined Development Agency (a joint Anglh-American  procurement agency) and to the United Kingdom Atomic Energy

Authority at very favourable prices so that Australian producers  were protected against a difficult market situation for the time

being. These contracts would be completed by about the mid-1960's.

By then the world demand would be developing for uranium

requirement for new power stations.

The atomic Energy Commission considered that, although a  rather difficult period lay in the years immediately ahead, the  longer range prospect of the need for uranium left no room for

doubt, Senator Spooner said. Continued exploration and  development work was needed to provide for future power needs.

SYDNEY

July 25. 1959 -

