Global resources giant BHP Billiton announced plans Friday to develop a major new uranium mine in Western Australia after the state lifted a ban on production of the nuclear fuel.
The company said it planned to begin producing uranium at its Yeelirrie site in 2014, boosting Australian output of the fuel as demand for nuclear energy grows in countries such as China and India.
"Current plans project construction commencing in 2011, with initial production from the mine in 2014, subject to government and BHP Billiton board approvals," BHP said in a statement.
The conservative Liberal Party took power in Western Australia last year and lifted a de facto ban on uranium mining in the state imposed by the previous centre-left Labor government.
Australia has the world's largest known reserves of uranium but only three mines operate in the country, while several more have been proposed.
BHP said it expects to produce an average of 5,000 tonnes of uranium a year at Yeelirrie, about 500 kilometres (300 miles) north of Kalgoorlie.
The company has submitted details of the proposal to state and federal environmental authorities.
Australia has 36 percent of the world's known uranium resources.
It exported 10,139 tonnes of uranium oxide valued at 887 million Australian dollars (665 million US) last fiscal year ended June 30, 2008, according to official data.
— Dow Jones Newswires contributed to this report —
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