Friday 7 April 2006
ABC Stateline NT
Reporter: Melinda James

THIS WEEK THE FEDERAL GOVERNMENT SIGNED AN AGREEMENT ALLOWING THE EXPORT OF URANIUM TO CHINA.
THE COMMONWEALTH IS NOW TALKING UP THE POSSIBILITY OF NEW URANIUM MINES OPENING UP OVER THE NEXT FEW YEARS.
THE SOUTH AUSTRALIAN PREMIER, MIKE RANN HAS WELCOMED THE AGREEMENT.
BUT THE QUEENSLAND AND WEST AUSTRALIAN GOVERNMENTS REMAIN STEADFASTLY OPPOSED TO URANIUM MINING.
DESPITE THE WEALTH OF URANIUM IN THE NT, THE CHIEF MINISTER, CLARE MARTIN HASN'T YET MADE HER POSITION ON NEW MINES CLEAR.
I SPOKE TO THE FEDERAL INDUSTRY AND RESOURCES MINISTER IAN MACFARLANE ABOUT WHAT THE INCREASED DEMAND FOR AUSTRALIAN URANIUM COULD MEAN FOR THE TERRITORY.

MELINDA JAMES:
Ian Macfarland welcome to the program.

IAN MACFARLANE:
It's a pleasure.

MELINDA JAMES:
This agreement with china could see Australia's uranium sales treble - how many new mines will it take to reach that goal?

IAN MACFARLANE:
Well it is not necessarily a case of how many mines but a case of how much production out of each mine, including the existing mines, Olympic Dam has a potential to double its production and almost meet some of that demand itself what we will see over the next 4-5 years is a strong exploration push particularly in SA and the NT, and the potential for 3-4 mines to open over the next 5-7 years.

MELINDA JAMES:
Does the agreement with china bring a sense of urgency to the need for another mine in the northern territory?

IAN MACFARLANE:
I think it brings a sense of purpose of another mine to the NT but not necessarily and urgency, we have the potential to meet this demand as it grows, bearing in mind that demand probably won't come on in any real sense in a couple of years, and then build up after that so I think Australian should be prepared to open new mines and we need to start those process.

MELINDA JAMES:
In that case how soon would you like to see another uranium mine in the territory?

IAN MACFARLANE:
Well that's really up to the demand from the contracts, and those contracts have not even begin to be negotiated yet between the companies involved in exporting the uranium and the purchasers of uranium, and that will be a commercial arrangement and the progress after that will depend on how those contracts need to be filled/

MELINDA JAMES:
Do you agree that the Territory must be an attractive prospect for miners because they won't have to face the same opposition as they would in Western Australia for example because the federal government now has control of uranium mining here in the Territory?

IAN MACFARLANE:
Well the federal government always had control of the mining of uranium in the NT we had hoped that the Territory Government would behave responsibly in that regard, and they didn't, so we continued to operate that power. In terms of the opportunities yes there are very real opportunities in the NT we have a situation where that stayed in SA and both very prospective for uranium and a willingness of companies to invest there.

MELINDA JAMES:
At a uranium conference recently, the mineral exploration company Arafura resources says the Northern Territory has the potential to lead the world in uranium exports. Do you agree with that?

IAN MACFARLANE:
Well that's a big call bearing in mind that the biggest mine in the world is in SA and is about to double in size, but certainly the NT has certain potential in terms of its mining and export potential.

MELINDA JAMES:
The company also says Australia has the potential to host up to 20 uranium mines within the next ten years, is that something you'd like to see happen? Is that realistic?

IAN MACFARLANE:
Well I think its ambitious to say the least and I think and I think really what I think we want to see is Australia assume the role of being the worlds leading exporter of uranium, and that is for two reasons, firstly and obviously the income that that can earn Australia and the Jobs that it can create, but secondly because uranium exported out of Australia is exported under the strictest guide lines in the world the strictest safe guards in the world, and Australia by doing that are playing a significant role in nuclear non proliferation.

MELINDA JAMES:
What do you make of Clare Martin's refusal to take a stance on the "no new mines" policy debate? Particularly given that the South Australian and West Australian premiers have been so vocal albeit from different sides of the argument?

IAN MACFARLANE:
I'm disappointed that Clare has taken this approach, the reality is that uranium mining is part and parcel of the NT and the number of mines is not always an equivalent to the amount of uranium being exported, it really is an outdated policy and we are seeing quite a bit of fraction in the Labor party itself, some premiers like Mike Rann and some Premiers are considering supporting it like Peter Beattie, and some are opposed to it.

MELINDA JAMES:
The Chief Minister is yet to make her position clear but does it really matter what the territory government's position is anyway?

IAN MACFARLANE:
It matters in the context that the Territorians have the right to expect that there Government will participate in this process, now my understanding is that for political reasons Clare has decided to opt out of the process, I've encouraged the operations to continue between the Northern Territory Mines Department and the Commonwealth government as we move to grant approval to any new mine, but in the end the practical result of Clare making what is purely a political position out of this is that she will be simply put to one side and the process will continue to work with out her.

MELINDA JAMES:
Ian Macfarlane thank you very much for talking to us.

IAN MACFARLANE:
It's been a pleasure, thankyou…