Xstrata has announced it will halt its attempts to break into the uranium market, blaming hostile attitudes and a highly competitive local market.

 

Managing Director Mick Davis announced that the miner would not make any future bids because the miner ‘has enough difficulty managing relationships with governments”.

 

The announcement by Mr Davis comes after the miner failed to aquire WMC Resources, which owns the world’s largest uranium deposit in Olympic Dam, after BHP Billiton trumped the offer in 2005.

 

Mr Davis has said that Xstrata, which has no uranium assets, will avoid breaking into the market because of entrenched prejudices and the political implications of being involved in the sector.

Xstrata’s decision to pull out of any future uranium bids comes as Mr Davis lashed the Federal Government’s proposed carbon tax, calling it a “bloody stupid idea”.