Monday, 8 January, 2007

by ALISON BEVEGE
NT News

THE NT Department of Mines is facing legal action over the coveted Angela and Pamela uranium deposits, which are said to be worth as much as $2 billion.

An injunction has been lodged in the Darwin Supreme Court, preventing the Department of Mines from making a decision over which -- out of almost 40 applicants -- will be granted mining exploration rights over the deposits.

Territory mine developer Norm McCleary, founder of Arafura Resources, says the NT Department of Mines did not follow correct procedure when dealing with his application for access to the Angela and Pamela sites, unfairly denied consent for him to enter the land and did not provide reasons for their refusal.

NT Department of Mines spokesman Stephen Yates confirmed the department could not make a decision now on the Angela and Pamela deposits, as the matter was before the courts.

"Because the matter is before the courts, we can't make any comment and the timeframe for it to be resolved is entirely up to the courts," Mr Yates told the Northern Territory News.

The uranium deposits are about 25km south of Alice Springs on land released when the NT Government lifted its reservation from occupation (ROs) over 18 sites last month.

The Australian Uranium Association reports that the Angela deposit alone contains about 10,250 tonnes of uranium at an ore grade of 0.13 per cent.

The two deposits have been estimated to be worth between $1 billion and $2 billion.

Almost 40 applicants, reading like a "who's who" of the global uranium industry -- including Cameco, Paladin, Energy Resources of Australia and China's state-owned Sinosteel -- have applied for mineral exploration rights over the deposits.

It is believed that China's giant state-owned conglomerate, China National Nuclear Corporation, may also have applied.

The NT Department of Mines is to decide which applicant will be granted the exploration rights.

The decision had been expected by the first quarter of 2007.

An injunction restraining the Mines Department from giving consent to any other party to enter the land for mineral exploration was lodged on December 21.

A directions hearing will be go before Justice Stephen Southwood at the Darwin Supreme Court on January 18.