South Australia Honeymoon Mine JV is in the Yellow

Japan’s Mitsui and Canada’s Uranium One have reached a milestone in their development of the $118 million state-of-the-art Honeymoon uranium mine.

Construction began in April on the mine in South Australia’s north-east, 37 years after yellowcake was first found at the site.

Premier Mike Rann has congratulated the Honeymoon joint venture as the first foray by a Japanese investor into Australia’s uranium mining industry.

“Honeymoon will be capable of producing about 400 tonnes of uranium oxide a year, worth about $80 million to South Australia’s tally of annual mineral exports,” Mr Rann says.



The mine is one of the many projects proceeding in South Australia’s resource industry.

Mineral Resources Development Minister Paul Holloway says four or five mines are expected to be approved in the next 12 months, building on the 11 operating in the State now.

Among them is the Jacinth-Ambrosia mineral sands project, which is on track to begin operations in 2010, while the proposed Olympic Dam expansion took another step toward fruition with the release of its environmental impact statement in early May. Submissions will be received until 7 August.

South Australia’s resources sector remains strong despite the downturn in mineral exploration spending reflected in the latest Australian Bureau of Statistics figures.

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South Australian international student intake up 24%

South Australia’s international education industry continues to defy the economic downturn by outstripping the national average to record a 24% jump in overseas student enrolments in the first three months of 2009.

Employment, Training and Further Education Minister, Michael O’Brien, says the latest Australian Education International (AEI) figures emphasize the resilience of international education in the face of the global financial crisis.

“It’s up to 30% cheaper for many Asian students to study in Adelaide this year due to the lower Australian dollar,” Mr O’Brien says.

“That’s reflected in the 24.3% hike in enrolments we’ve recorded so far in 2009 – our strongest growth rate in seven years.

“If that growth continues, we are on target to attract a record 32,000 international students by the end of the year,” Mr O’Brien says.

Nationally, AEI figures show that international student enrolments rose 20.8% in the first three months of 2009 – pouring more than $15 billion into the national economy.

Mr O’Brien says the continued buoyancy of South Australia’s $741 million international education industry is no mere accident.

“South Australia’s university and training providers must be commended for their highly professional international office marketing and recruitment programs.

“And we don’t just reap financial benefits: our education providers are helping to teach the next generation of Asian leaders, which in turn enhances their understanding of our language and culture and fosters closer ties with South Australia.”

‘The State Government is also providing $500,000 for primary and high school fees to be waived for the dependants of international Higher Degree by Research students studying at South Australian universities.

“This is a positive initiative coming from next week’s State Budget, which will rectify the disadvantage we have faced against other states offering fee waivers.

“This fee waiver only applies to Higher Degree by Research students who are sponsored by scholarships from their home countries.

“The scheme, to be funded over four years, will boost university efforts to attract the brightest students from countries such as Malaysia, Vietnam and the United Arab Emirates.

“The decision means we will be in a position of parity with our major interstate competitors and it provides an opportunity to expand our research and innovation base,” Mr O’Brien says.

Commencements in South Australia grew 21.1% to the end of March, compared with a national average of 18%.

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Adelaide house prices 2009

Australian home values recorded a healthy 2.8% increase over the first four months of 2009

The RP Data/Rismark Australian Home Value Index out today confirmed that housing values around Australia rose by a healthy 2.8 per cent over the first four months to April 09—virtually wiping out the price falls seen in 2008 according to RP Data National Research Director Tim Lawless.

Over the first four months to April 09, every mainland capital city apart from Perth recorded an increase in home values with the most significant gains in Darwin (+5.3 per cent), Melbourne (+4.4 per cent), and Sydney (+3.9 per cent).

The recent growth in the Australian residential property market has fuelled speculation about a ‘bubble’ developing in the first home buyers market but RP Data’s Mr Lawless believes these claims are largely unjustified.



“Home values in Australian capital cities mortgage belts, which are the prime first home buyer markets, were flat or falling between 2004-07 while the inner city and affluent markets enjoyed consistent growth. In 2008-09 we have seen a reversal of these fortunes,” he said.

Mr Joye adds “While first-time buyer activity has certainly supported the market, people forget that 70-75 per cent of home buyers are not first timers. Also, lending standards are more conservative today than they have been for over 15 years with maximum borrowing ratios being consistently reduced.”

The return to capital growth comes as weekly rental rates start to level.

Mr Lawless said, “Rental rates across Australia have powered ahead over the last three years, providing the best gross rental yields investors have seen for a long time.

“We are now seeing growth rates for weekly rents start to level due to decreasing rental affordability which is causing many renters to consider buying a home instead of renting.

“Gross rental yields are likely to peak over the coming months suggesting that now is probably the best time for investors to roll up their sleeves and become active,” he said.

In terms of housing stock, units are continuing to outperform houses where over the first four months of 2009 values increased by 3.3 per cent while house values increased by 2.7 per cent.

In closing Mr Lawless said “The stronger performance of the unit market is due to a number of factors. Comparing median house and unit values nationally, the price gap between is just over $90,000, so the value proposition of a unit is very compelling. Additionally, units are generally located closer to the city and along transport spines which is very appealing to many Gen Y and Gen X buyers,” he said.

The monthly Australian capital city home value changes are as follows: January (+0.1 per cent); February (+1 per cent); March (+0.6 per cent); and April (+1 per cent). The April index results are indicative and may be subject to small revisions.


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