Cheeeeeers to the BLR cheer squad.....Uranium opportunity 'at...

Cheeeeeers to the BLR cheer squad.....


Uranium opportunity 'at risk', says secret report

by: Annabel Hepworth, National business correspondent
From: The Australian December 19, 2012 12:00AM


RESTRICTIONS on shipping uranium could hinder Australia being a major supplier and push customers to source the radioactive metal from elsewhere, a high-level advisory report to the nation's energy and resources ministers warns.

The secret report by the industry-government Uranium Council, obtained by The Australian, finds that while Australia has the world's largest uranium endowment, with more than 33 per cent of reserves, the nation is producing and exporting well below its potential and is being overtaken by Kazakhstan and Canada.

The report warns that capital and operating costs are rising more rapidly than elsewhere in the world and declares that "duplicative and unnecessary environmental assessment processes", restrictions on accessing ports to ship uranium and public misconceptions are priorities that must be addressed.

The findings are a blow to the government, given Julia Gillard's push to sell uranium to India, which sparked a divisive debate at the ALP's national conference last year.
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The report comes as Toro Energy last night hit out at the Gillard government after Environment Minister Tony Burke delayed a decision on its environmental assessment of the Wiluna Uranium Project in the central north of Western Australia. The project had West Australian government approval on October 10 after a three-year assessment under a federal-state agreement.

Toro, which had expected the final federal government decision by yesterday, was told it would be extended to as late as March 31 because Mr Burke wanted more information on certain aspects of the project.

Toro managing director Greg Hall said the company was "very surprised and extremely disappointed" by the delay because the bilateral agreement was meant to ensure harmonisation of the process and Toro had been told by the minister's office on more than one occasion that no further information was needed.

The uranium council report says that while Japan's Fukushima disaster has prompted some countries to reduce their reliance on nuclear power, the softer demand for uranium will be offset over the long term by increased demand from Asia - where most new nuclear reactors are being built.

It says that Australia is well-placed to provide for this region. But uranium exporters are forced to rely on the ports of Adelaide and Darwin to ship uranium.

"Uncertainty in shipping could damage Australia's reputation as a responsible, secure and reliable supplier of uranium and may encourage customers to source uranium from elsewhere," the report says.

"As new operations come online, potentially in jurisdictions outside of the NT and South Australia, the need for increased access to additional transport facilities and infrastructure will have to be addressed by industry and governments.

"Until more ports are available for uranium export, uranium producers in emerging uranium mining states may be required to transport their product overland for large distances."

Western Australia's Liberal-Nationals government - which lifted a uranium ban in 2008 - has refused to export yellowcake from the state's ports on the grounds that no ports are suitable, while the local government at Fremantle (which has the state's busiest container port) is opposed to uranium being transported or moved through the municipality.

The report warns that the increased handling and transport would increase costs.

The chairman of the uranium council, Paladin Energy's Mark Chalmers, briefed the Standing Council on Energy and Resources at a closed-door meeting on Friday about the report.

As well as industry representatives, the uranium council's membership includes officials from the commonwealth, South Australian, Northern Territory and West Australian governments, as well as the Northern Land Council. The body was established by the Howard government in 2007 and has a secretariat provided by the Department of Resources, Energy and Tourism.

Queensland - which lifted a ban on uranium production in October - and NSW - which now allows exploration, but not mining - have been invited to join the council.

While the communique for the SCER meeting on Friday said ministers had received a report into the strategic challenges facing the uranium sector, the federal government would not release it to The Australian.

Federal Resources Minister Martin Ferguson, who is chairman of the SCER, said it was "not the usual practice of the council to release reports considered by it".

"As chair, I don't have the unilateral authority to publicly release reports made to the ministerial council without a decision of the council authorising such release," Mr Ferguson said.

"As no such decision has been taken in relation to the Uranium Council's report to SCER, I am not in a position to release it without due process."