Moves to scrap three-mine uranium policy supported

5/3/96

Energy Minister Colin Barnett has supported moves to scrap the three-mine uranium policy, a remnant of the former Federal Labor Government.

"Australia, and Western Australia in particular, is missing out on an enormously valuable export resource while this outdated policy remains in place," Mr Barnett said.

The Minister said there was a world-wide trend towards the use of nuclear energy, ironically because of the lack of Greenhouse gas emissions which made it a much cleaner source of energy than traditional fossil fuels.

"Over the next 20 years or so, the use of uranium for peaceful purposes will continue to expand," he said.

"The uranium market is expected to grow by at least one per cent a year for the next 15 years with prices likely to double from US$10 a pound to around US$20 a pound by the end of the decade. Current demand outweighs production levels.

"Australia's market share in uranium on a world-wide basis is 10 per cent yet we hold more than 30 per cent of the world's uranium reserves.

"Of this, WA has 25 per cent of the nation's uranium reserves."

Mr Barnett said CRA believed its Kintyre high-grade, low-cost deposit in the East Pilbara would generate annual export revenue of more than $70 million based on current prices.

"Importantly, the project would be a low-cost producer and profitable even at current prices," he said.

The Minister said Western Mining Corporation's Yeelirrie project, another high-grade, low-cost deposit, had been completely stalled by the previous Government's adoption of the original two-dam policy, which was later amended to a three-mine policy to accommodate the Olympic Dam operation in South Australia.

"This policy compels us to sit on our hands and deny WA a potentially enormous source of export revenue while countries such as Canada are rapidly expanding their uranium industry," he said.

"It has done absolutely nothing to limit the expanding world uranium market but it certainly means Canada's projects will go ahead in place of Australia's.

"It is believed the policy could be costing Australia up to $550 million a year in export revenue by the end of the century.

"There is no danger to WA in the process of mining uranium and exporting yellowcake and I am not proposing we utilise uranium in this State for energy purposes, as we have no need to do so.

"However, other nations are rapidly running out of viable sources of energy and are seriously considering using nuclear power."

Mr Barnett said the process of mining uranium and exporting yellowcake would be done with strict adherence to environmental guidelines for the mining and rehabilitation of uranium deposits and exported with due regard for international conventions and agreements on its use, as well as strict transport and storage controls.

Australia is a signatory to the Nuclear Non Proliferation Treaty and does not supply uranium to nations outside of the international safeguard system.

"The three-mine uranium policy is totally against the spirit of free trade," the Minister said.

"In fact the policy discriminates between projects and between States. How can it be acceptable to allow mining in the Northern Territory and South Australia but not in WA?

"While I accept that safeguards must be put in place and adhered to within the uranium market place, the Federal Government had no right to discriminate within Australia as to who supplies that market."

Media contact: Carolyn Vicars 222 9699