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RANN'S BID FOR
POLICY SHIFT
ON URANIUM
By JEMMA CHAPMAN and BRONWYN HURRELL
29mar06

THE prospect of a huge uranium deal between Australia and China has spurred Premier Mike Rann to make his strongest stand yet on the need for Labor to overturn its no-new-mines policy.

"I believe the current national ALP policy is anachronistic and therefore is likely to be changed," Mr Rann said yesterday.
His comments came as Prime Minister John Howard confirmed the way was being paved for uranium sales to China.

Chinese Premier Wen Jiabao begins a four-day visit to Australia at the weekend and a uranium safeguards agreement between the two countries is expected to be signed off next week. Mr Rann has come under pressure from the State Opposition over Labor's refusal to change its policy on new mines, which was reaffirmed at the ALP State Convention last October.

But his comments yesterday are a clear signal to Labor nationally that he believes the party's present limit on uranium mining will eventually be overturned in the economic interest, regardless of any ideological opposition.

Deputy Premier Kevin Foley called last year for the policy to be "scrapped".

South Australia, home to the world's largest uranium deposit at Roxby Downs, already has approval for three mines.

Therefore, it is understood Mr Rann believes Labor's policy is not presently a hurdle to development, because the Federal Coalition Government would not limit a new mine and mining in SA has not yet been limited.

But Federal Government sources said state Labor governments would need to move quickly to overturn any legislative hurdles that prevented Australia from meeting the rapidly growing global demand for uranium.

Mr Rann's comments demonstrate he believes any future federal Labor government would not have a policy of opposing more uranium mining.

The Premier said he had no problem with the deal because China had reaffirmed its commitment to the nuclear non-proliferation treaty.

"On the matter of selling uranium to China, my view has always been in terms of the ethicacy of international safeguards agreements that the bottom line has to be that any country to which we sell our uranium has to be a signatory to the Nuclear Non-Proliferation Treaty," he said.

"If that country won't abide by the protocols of the nuclear non-proliferation treaty and indeed international safeguards arrangements, then our uranium should not be sold to them," he said.

Mr Rann insisted yesterday that changing Labor's policy would not immediately impact on SA.

"A change to the no-new-mines policy doesn't in fact at this stage affect SA at all. I want to make that abundantly clear, because all of the mines in SA - both current and prospective - have already received approval," he said.

"My view is that the three-mines policy has massively benefited SA because obviously Roxby Downs was the principal beneficiary of the change in policy back in 1982."

Federal Resources Minister Ian Macfarlane seized on the strength of Mr Rann's comments, saying the "numbers are stacking up" for a change in policy.

Mr Macfarlane called on Opposition Leader Kim Beazley and premiers in Queensland and WA to stop their opposition to the uranium industry.

"These premiers continue to hold out against the export of uranium by hiding behind the ideological shield provided by federal Labor's policy of no new mines," he said.

"Today this defence has been ripped from their hands by one of their own."

A spokesman for Mr Beazley said: "Labor's policy in government will always be consistent with our platform. If any member of the party wants to change any aspect of the platform, they have the opportunity to do so at national conference."

Mr Howard said "very good progress" had been made with China. He said: "It's possible that the discussions could be satisfactorily concluded so that something could be said or signed when the Chinese premier visits Australia next week."

India has also signalled a desire to buy Australian uranium - but is not a signatory to the NPT.

"As to what happens with India, I've already said there's going to be no policy change. We're not contemplating it, let's put it that way," Mr Howard said.

Shares in uranium companies surged higher because of the imminent deal with China. WA explorer Encounter Resources shot up 85.26 per cent to 88c. Others making big gains included Deep Yellow and PepinNini Minerals.

Adelaide-based newcomer Toro Energy, which issued shares at 25c before its float on Friday, is now trading at $1.39 1/2.

The mines policy will be a topic of hot debate at the 2006 Uranium Conference which begins in Adelaide tomorrow.