Australian Labor scraps ban on new uranium mines
Saturday, 28 April, 2007
by James Grubel
Reuters
But after a divisive debate at the part's national policy conference in Sydney, Labor maintained its staunch opposition to nuclear power or any nuclear enrichment industry in Australia, which holds about 40 percent of the world's uranium.
While Labor is in opposition nationally, the party holds power in all of Australia's six states and two territories, and the state governments continue to hold the powers to approve or veto mining developments.
The new policy is not binding on state governments, but adds some certainty for mining companies wanting to mine for uranium in other states, particularly South Australia and the Northern Territory where Australia's three existing uranium mines operate.
The state premiers of Western Australia and Queensland, which hold most of the untapped uranium reserves, said they would continue to use their powers to stop new uranium mines.
"The Western Australian Premier and I have made it clear ... and we are the resource states, we won't be mining uranium. We'll keep it exactly as it is," Queensland state Premier Peter Beattie told reporters on Saturday.
Environmentalists, including about 100 members of the Greens party who protested outside the conference, condemned Labor's new policy but the Australian Uranium Association hailed the move as a significant development for uranium industry.
"For the first time in 30 years there is bipartisan support for the uranium industry, and that will allow our industry to invest and grow," association chief executive Michael Angwin told Reuters.
Labor's new policy came as conservative Prime Minister John Howard announced plans to help expand Australia's uranium industry to make it easier for companies which might want to develop nuclear processing or nuclear power in Australia.
ELECTION ISSUE
Australia has no nuclear power or enrichment industry, but a government report last November said Australia could have a viable nuclear enrichment and nuclear power industry within 15 years as the cost of coal-fired power increases.
Howard, a strong supporter of nuclear energy and increased uranium exports, said his government would soon overturn laws which prevent nuclear activities in Australia, and would introduce laws in 2008 to set up a nuclear regulatory regime.
His move ensures nuclear power and enrichment will be key issue for voters at national elections, due in the second half of 2007.
Uranium was the source of about 16 percent of the world's electricity from over 430 nuclear power reactors, Australia's Association of Mining and Exploring Companies said, with global demand for electricity and uranium expected to increase by 50 percent over the next 25 years.
Encouraged by the four-fold increase in the price of uranium since 1995, more than 40 listed companies are currently exploring for uranium across Australia.
WORLD'S BIGGEST MINE
Uranium mining in Australia is dominated by the world's biggest mining companies, BHP Billiton Ltd./Plc and Rio Tinto Ltd./Plc.
BHP Billiton owns and operates the world's biggest uranium mine at Roxby Downs in the remote north of the South Australia, and has plans for a major expansion of production there.
The Rio-controlled Energy Resources Australia operates the Ranger Mine in the Northern Territory, while the third mine, Beverly, is operated by General Atomics.
Australia was on track to export 10,800 tonnes of uranium in 2006/07, worth about A$790 million ($653 million), the Australian Bureau of Agricultural and Resource Economics said.
Australia exports uranium to 36 countries, but only sells to nations that have signed the nuclear non-proliferation treaty, and only when Canberra has also signed a bilateral nuclear safeguards agreement on the use of its uranium.
Australia last year signed an agreement allowing uranium sales to China, and has begun new talks with the Russian Federation to allow sales of Australian uranium to Russia's expanding nuclear power industry.