The Four Mile uranium mine in South Australia officially opened last month. According to Australia media, the uranium will cost $40 a pound to produce while the market price is $28 a pound. The mine is owned by Quasar Resources, which is part of San Diego's General Atomics. Another company has 25 percent of Four Mile, but wants to get out of the deal. First, it sued, but then the two companies settled on terms that have not been publicized.
So Quasar and General Atomics will absorb fat losses, unless there is some subsidy arrangement that has not been revealed. General Atomics has another Australia uranium producer, Heathgate Resources, which has been losing a bundle of money.
The quality of Four Mile uranium is supposedly superior to that produced in other mines. General Atomics is hoping for higher uranium prices to make its mines profitable.
Uranium prices plummeted 50 percent after the meltdown at the Fukushima nuclear plant in 2011.