Raisings at risk in mine ban fallout Nigel Wilson, Energy writer October 11, 2005
MILLIONS of dollars in capital raisings for uranium floats in South Australia are under a cloud following the State ALP's unannounced decision to block new uranium mines in the State.
South Australia, which houses two of the three operating uranium mines in the country, was the state that was expected to be the most liberal in its approach to uranium mining in the current debate about increasing Australia's uranium exports.
State Premier Mike Rann supports uranium mining for its contribution to the South Australian economy.
But at the weekend the South Australian Labor Party conference strengthened opposition to expanding uranium mining.
The conference endorsed, unanimously and without debate, a platform motion that says: "Labor continues to be opposed to the establishment of any new uranium mines and any expansion into the enrichment process."
In 2005, five companies have raised a total of $25.5 million from the sharemarket to finance the search for uranium in South Australia, their share prices rising strongly since listing.
The Australian Conservation Foundation, which had campaigned for the ban, yesterday welcomed the move. ACF nuclear campaigner David Noonan said the ALP platform would end speculation South Australia would encourage new mines.
"The outcome is that uranium speculators in SA - and their investors - can now have zero confidence in any commercialisation till at least 2010, if ever.
"What this does is clearly show investors in uranium floats in this state have wasted their money," Mr Noonan said.
There was no chance new mines would now proceed, even though the policy did not affect the two existing mines.
Mr Noonan called on the South Australian Government to stop subsidising exploration for uranium, saying this policy - which gives some explorers a 50 per cent rebate on drilling costs - was a waste of public resources, in light of the ALP platform.
The South Australian ALP move comes as the party nationally is increasingly riven by cross-factional attempts to overthrow its three mines policy, which has operated since 1983.
Federal resources shadow Martin Ferguson, who supports the issue being debated at the party's national conference next year, is in Perth to speak to a uranium conference today.
WA Premier Geoff Gallop is strongly opposed to the move but has been unable to stop the issue being placed on the WA ALP conference agenda next month.
Last month Queensland Premier Peter Beattie rejected a suggestion by party broker Bill Ludwig that the three mines policy should be expanded.
Mr Beattie said uranium was a major competitor to coal, and encouraging uranium mining would undermine the wealth of Queensland.
The SA move also included the statement that:
"Labor strongly opposes the location of a national radioactive waste repository in South Australia.
"Given the grave concerns raised by the 2003 Senate Committee on the uranium industry in Australia about the practice of in situ leaching, Labor will ensure there is monitoring of the environmental impact of the in situ leaching method.
"Under Labor, uranium mining has become subject to the scrutiny of the Environmental Protection Authority. Labor also introduced revised reporting arrangements for spills at uranium mines. These regimes will be maintained."
The platform binds an ALP state government until 2010.
Political analysts last night said that with a State election scheduled for March, the ALP wanted to avoid a public clash over uranium.
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