Australia has added to its uranium repertoire with the opening of the Four Mile mine in South Australia.

It is just the fourth uranium mine in Australia, despite the country holding over a third of the world’s known high-grade uranium deposits.

But the new mine has not opened to an exciting market, with the uranium price at a low point Four Mile may struggle to make money in its early days.

Quasar Resources and Alliance Resources are operating joint venture, and the ore is being processed at the Beverley uranium mine site nearby.

Four Mile is projected to produce about 1.6 million pounds of uranium in its first year, empliyng around 140 workers in the process.

The deposit in the northern Flinders Ranges was discovered almost a decade ago and the mining lease application made in 2008.

Some native title issues threatened the progress on the mine earlier this year, but these have reportedly been cleared up. 

South Australian Premier Jay Weatherill and Treasurer Tom Koutsantonis joined other luminaries at the site 550 kilometres north of Adelaide for the official opening.

Quasar director Dave Roberts said the quality of the ore at Four Mile is higher than that at Olympic Dam, where BHP Billiton has its uranium operation.

But almost as soon as the operations were started, another hurdle has come along.

Alliance Resources says it wants to sell its 25 per cent stake in Four Mile, also threatening court action over accusations that Quasar engaged in misleading and deceptive conduct while they worked together on the project.

No more details about the stoush are available just yet, but if the court action affects the basis for the mine’s approval, it could therefore impact the legality of its operation.