urg::: HK trader eyes our uranium

[Len Kanaar - FoE Sydney]

The Australian

HK trader eyes our uranium
Andrew Trounson
07sep05

HONG Kong-based commodities merchant and logistics company Noble 
Group is on the hunt for uranium assets, and Australian deposits are 
on its shopping list.

Noble would be well-placed to supply uranium to China, which is in 
negotiations with Australia to agree a safeguards regime under which 
Australian uranium could be sold to the nuclear-armed state.

About 25 per cent of Noble's revenues are generated from China and 
Noble has identified nuclear fuel as a new growth business alongside 
its already widely diversified hand in metals, minerals, agriculture, 
shipping and most recently carbon trading.

Beijing plans to build up to 30 nuclear reactors over the next 15 
years. "We believe (nuclear) is a fuel of the future," Noble founder 
and chief executive Richard Elman said. And he said he was on the 
lookout for opportunities to access Australian uranium.

"Certainly, should the right opportunity present itself, we would be 
interested," he said.

Noble is looking at "large-scale opportunities relating to both the 
primary processing and reprocessing of nuclear fuel".

Noble raised $US700 million from a bond issue in March with the 
proceeds to go partly towards potential strategic acquisitions.

In addition to a stake in diversified Perth miner Consolidated 
Minerals, Noble's interests in Australia have so far mainly focused 
on coal. It controls private NSW coal miner Donaldson. It also has a 
6.7 per cent stake in listed NSW miner Centennial Coal following 
Centennial's scrip takeover of Austral Coal earlier this year.

And Australian coal assets continue to be on Mr Elman's radar screen. 
"We are particularly interested in coal. It fits very nicely in our 
business."

In the wake of the global commodities boom that has resulted in 
massive prices rises in iron ore, coal and metals, global steel 
makers and trading companies are increasingly looking to invest in 
Australian mining in order to secure supplies.

In the takeover bid for Austral, Noble accepted the Centennial offer, 
keeping out a late move by Swiss commodity trading rival Glencore to 
try and grab the marketing rights to Austral's production held by 
Noble.


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