02 May 2007
The Federal Labor Party lifts its ban on new uranium mines
The Australian Labor Party held its National Conference last weekend. At that conference, as many political commentators expected it would, the Federal Labor Party decided to abandon the "no new uranium mines" policy which it adopted over 20 years ago.
This change in Labor Party national policy was welcomed by the Minerals Council of Australia (MCA) in a media release issued on Saturday, but the MCA pointed out significant policy and legislative reform is needed at the State Government level to permit expansion of the uranium mining industry. In certain States, it remains to be seen if and when such reform will occur.
Australia's proven uranium reserves are located in the Northern Territory, Western Australia, South Australia and Queensland. The Premiers of Queensland and Western Australia have already made it clear that, notwithstanding the lifting of the Federal Labor Party's ban on new uranium mines, they remain opposed to uranium mining in their States. The Premier of South Australia appears to be the only State Labor Premier intending to take advantage of the change in Federal Labor Party policy to expand uranium mining in his State.
In 2005, the Federal Government took control of uranium mining in the Northern Territory at a time when the Territory Labor Government was opposed to new uranium mines. It is understood that the Federal Government is already considering proposals from companies that want to build new mines in the Northern Territory.
The Federal Government announces a new strategy to increase uranium exports and facilitate a nuclear power industry
On the same day that the Federal Labor Party voted by a narrow margin to abandon its ban against new uranium mines, the Prime Minister announced a new strategy for the future development of uranium mining and nuclear power in Australia. The Federal Government strategy is designed to increase uranium exports and prepare for a possible nuclear power industry in Australia.
The regulation of mining activity in Australia is predominantly a matter for the State and Territory Governments. The Federal Government reforms will not, for example, require the State Government in Queensland to allow uranium mining in that State. It is understood that the Federal Government reforms will address other perceived impediments to the development of the uranium mining industry, such as the reform of federal regulations relating to the transportation and export of uranium. These reforms are expected to occur almost immediately.
While the Federal Labor Party no longer opposes the opening of new uranium mines in Australia, it remains opposed to the use of nuclear power here. The Federal Government's new nuclear power strategy involves a commitment to participating in nuclear reactor research and the development of an appropriate nuclear energy regulatory regime to govern potential nuclear energy facilities in Australia. The debate over the use of nuclear power in Australia is probably just beginning.
Negotiations begin to allow the sale of uranium to Russia
On the opening day of the Labor Party's National Conference, the Foreign Minister Alexander Downer announced that Australia and the Russian Federation are negotiating to expand the 1990 Australia-Russia agreement regarding the peaceful uses of nuclear energy to bring the agreement into line with Australia's other bilateral safeguards agreements. Under the proposed new agreement, it is understood that Australian uranium producers will be free to supply uranium directly to Russia's nuclear power industry. Under the existing agreement, Australian uranium may only be processed in Russia by certain third party countries.
Mr Downer has stated that a key factor in the Federal Government's decision to negotiate the new agreement with Russia is Russia's decision last year to separate its military and nuclear programs and to bring its civil facilities under the watch of the International Atomic Energy Agency.
