Key points:
- The Western Australian Government has reversed a previous administrative ban on uranium mining in Western Australia.
- There is some uncertainty as to how the holders of current mining leases granted after the introduction of the administrative ban in June 2002 will have their mining leases amended to authorise uranium mining to occur.
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On 17 November 2008, the recently elected Western Australian Liberal-National Government lifted the former Labor Government’s ban on uranium mining in Western Australia which had had been in place since June 2002.
Background
To date, the development of the uranium mining industry in Australia has been constrained by three key factors:
- firstly, the control that the states each have over mining laws and activities within their jurisdictions
- secondly, the Australian Labor Party’s policy of ‘no new mines’ or ‘three mines’ policy for uranium mining in Australia, and
- thirdly, the prevalence of Labor governments at a state and territory level.
These factors have all had the effect of limiting uranium mining to the established uranium mining jurisdictions of the Northern Territory and South Australia. The last 18 months, however, has seen a rapid increase in the attention and public discourse regarding uranium mining in Australia. During this time:
- the federal taskforce set up to examine Australia’s nuclear future handed down its report (The Switkowski Report), strongly advocating the removal of restrictions on uranium mining in Australia, and
- the Australian Labor Party endorsed a new uranium policy which included overturning its 25-year ban on new uranium mines and leaving decisions about developing new uranium mines to state governments.
Despite these changes, Western Australia will be the first state to act to lift its ban on uranium mining. Queensland still maintains a similar administrative ban on uranium mining which had existed in Western Australia. Both Victoria and New South Wales have legislation in place which prohibits the exploration and mining of uranium.
Removal of restriction on uranium mining
The removal of the administrative ban on uranium mining in Western Australia will mean that mining leases granted following the lifting of the ban will be granted without the condition excluding the mining of uranium. At this stage, however, it remains unclear how mining leases granted after June 2002 and prior to the lifting of the ban will be amended so as to remove the ‘no uranium mining’ condition. The government is currently taking legal advice as to how these conditions can be removed.
Given that the removal of the administrative ban on uranium mining is not required (or intended) to be supported by legislation, there still remains a risk for project proponents that a successor government could subsequently decide to reactivate the ban. This risk may diminish, however, as uranium projects within the state get closer to development and the political and economic backlash of taking such action increases.
In announcing the removal of the ban on uranium mining, Premier Colin Barnett has highlighted that uranium mining will be strictly regulated with a strong focus on meeting international safeguards, environmental protection standards and ensuring the safety of employees and other stakeholders involved in the mining and transportation of uranium. Although amendments to the existing regulatory framework are likely, no recommendations have yet been made.
The Premier has also indicated that major uranium projects will likely be subject to state agreements, meaning they will fall within the Premier’s own portfolio as Minister for State Development.
Broader reforms
The green light for uranium mining was given on the same day as Mr Norman Moore, Minister for Mines and Petroleum, announced the establishment of an industry working group to improve exploration and development approval processes in Western Australia. These announcements pave the way for significant changes to the mining regulatory regime in Western Australia.
More information
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