alp to ban uranium mining in wa, page-14

The momentum is building.. Carpenter has opened up a pandora box he may regret he ever mentioned.

Canada miner to abandon WA uranium
Cath Hart August 29, 2008

A CANADIAN mining company has threatened to walk away from its investment in a $2 billion uranium reserve in outback West Australia, putting more pressure on Premier Alan Carpenter to renege on an election promise to ban uranium mining.

Mega Uranium said yesterday it would abandon its Lake Maitland asset in WA's Northern Goldfields, scrapping more than $100 million already invested in the project and cancelling plans to spend a further $200 million, if Mr Carpenter's plan for a legislative ban became a reality.

The threat comes after The Australian revealed yesterday that the traditional Aboriginal owners of desert country containing up to $5 billion worth of uranium accused the Labor Government of robbing them of negotiating rights to one of the world's richest uranium deposits.

The Toronto Stock Exchange-listed junior is the first company to halt current negotiations and announce a review of its plans after Mr Carpenter said on Tuesday he would introduce legislation to ban uranium mining in WA if re-elected on September 6.

"As a listed company in Canada, Mega cannot continue to invest in projects/jurisdictions in which it has little or no chance of a return," the company said in a statement.

"As such, the company is reviewing its entire Australian uranium portfolio with a view to reinvesting its exploration and development spending in jurisdictions in which it can ensure a return to shareholders."

Peter McNally, Mega's vice-president of project development, said the company would seek compensation if the legislation was passed.

"One of the things we'd look at would be the misrepresentation claim -- this investment climate and opportunity for uranium was there but now has been taken away," Mr McNally said.

The Lake Maitland deposit has 10,000 tonnes of uranium oxide with an in-ground value of up to $2 billion. A full feasibility study was due to start early next year, with a view to starting production in three years.

The Martu people of the Pilbara have attacked the Carpenter uranium ban plan. Rio Tinto has recently sold its Kintyre Rocks deposit in the Pilbara to Canada's Cameco and Japan's Mitsubishi for more than $500 million.

Mr McNally said Mega would not abandon its Ben Lomond and Maureen deposits in Queensland but would relocate its operations to Canada if the legislation was passed.

A spokesman for Mr Carpenter said the Government's position on uranium mining had been "crystal clear for a long time".

"There will be no uranium mining," he said.

Australian Uranium Association executive director Michael Angwin said Mr Carpenter's "criminalisation" of uranium mining failed to account for the fact that demand for uranium was driven by concerns about dangerous climate change and energy security.

"Any ban on uranium mining is simply not sustainable because the counter-argument for its use is too strong," he said.

Uranium exports would add about $3.2 billion to WA's gross state product between now and 2030 and would avoid 1.5 billion tonnes of greenhouses gases, hesaid.

"The per-capita emissions of greenhouse gases in WA is among the highest in the country -- exporting WA uranium will compensate for that," he said.
source: http://www.theaustralian.news.com.au/story/0,25197,24259171-2702,00.html