Strategic Recommendation, Uranium Mining Industry in Australia

Strategic Recommendation

In the wake of the recent happenings in Japan, I believe that now is the ideal time to enter the uranium mining market. Other companies are understandably fearful of investing in anything nuclear-related. Bidding wars for undeveloped mines would not be as intense as before, while uranium prices and stocks(which are currently underpriced due to the knee-jerk reactions of investors) will be expected to rise to its pre-crisis levels in a few years, when uranium mining gets underway.

Assuming that the company is a new entrant to the Australian market, the company has to create a niche market to distinguish itself from its peers. Most of the current uranium mines in Australia produce low-quality uranium ores. Perhaps it is wise for the company to enhance the quality of low-quality uranium(via enrichment process) before exporting in order to attract buyers from nuclear plants which can only utilize high-quality uranium, thereby creating a niche market and a competitive edge for the