Toro Energy buoyed by WA Opposition Leader’s revised uranium mine policy

Toro Energy (ASX: TOE) is encouraged by Western Australian Opposition Leader Mark McGowan’s announcement this week that he will allow uranium mines already approved by the current Liberal Government to proceed if Labor gains power in the next election.

A Government decision is expected for Toro’s Wiluna Project by mid-2012, well before Western Australia’s next election, with environmental impact documentation now in the final stages of assessment by the Western Australian and Federal Governments.

Subject to the uranium market and suitable project finance, Toro anticipates a development decision by the end 2012, with construction and commissioning through 2013 and first sales in 2014.

Last year Toro completed and announced technical and economic improvements to its Wiluna Project, with increased resources, pilot processing completed, and improved economic outcomes.

A major review of the economic model for Wiluna has yielded a C1 cash operating cost of US$33 per pound of uranium and recoveries of 85% after a two year ramp up.

Wiluna is the most advanced project in government assessment in Australia, and one of a few uranium projects globally, able to be developed in the short term.

Managing director Greg Hall said while the policy shift is welcome, and supports the current status of the Wiluna Uranium Project, it still does not create full certainty for future uranium projects in Western Australia.

The final detailed engineering study will begin at the start of February, with completion of the Definitive Feasibility Study planned to coincide with anticipated approval decisions.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/24459/toro-energy-buoyed-by-wa-opposition-leaders-revised-uranium-mine-policy--24459.html