Recent developments in uranium

In brief

Partner Richard Malcolmson and Senior Associates Emily Gerrard and Anna Vella report on recent developments in the Australian uranium sector, including Queensland's framework for uranium mining, the Western Australian regulator's recommendation to proceed with uranium mining at Kintyre, and the Federal Government's proposal to include 'nuclear actions' in the streamlining of environmental assessments and approvals as a 'one stop shop' process.

Queensland – uranium mining framework announced

On 1 August 2014, the Queensland Government announced its 'best practice' assessment and approval framework for the recommencement of uranium mining. The framework adopts the same obligations that apply to existing mineral tenure holders, including compliance with land access and native title laws. As previously recommended by the Uranium Mining Implementation Committee¹, applications for uranium mining projects must be lodged with the Coordinator-General to be assessed as a 'coordinated project', requiring environment assessments and approvals.

Now that the framework for uranium mining projects in Queensland has been finalised and made publicly available, no barriers remain to proponents applying for the necessary approvals to commence mining operations.

Also on 1 August, the Queensland Government announced its plans to re-open the abandoned Mary Kathleen mine site (which is located between Mt Isa and Cloncurry) by way of competitive tender.² The media statement by the Minister for Natural Resources and Mines noted that the tender process will provide the successful tenderer with access to rare earths and other minerals present at the site.³ According to the Queensland Government's procurement website, calls for tender are now open and responses can be made until 3 November 2014.

It is proposed that any uranium mined at Mary Kathleen will be transported to, and exported via, existing ports at Darwin or South Australia. Any uranium mining undertaken at Mary Kathleen will be the first uranium mining operation in Queensland since 1982.

Western Australia – EPA gives conditional green light to mining at Kintyre

On 28 July 2014, the Western Australian Environmental Protection Authority (EPA) published its advice and recommendations to the Western Australian Minister for Environment on the proposal by Cameco Australia Pty Ltd to develop the Kintyre uranium mine. The proposed project, located north-east of Newman in the Pilbara region of Western Australia, includes construction of the open-cut mine and associated infrastructure, and the discharge of waste to a tailings management facility. It also includes a proposal to transport the uranium oxide by road to Adelaide for export.

Cameco referred the proposal to the Federal Minister for Environment (the Federal Minister) under the Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) and to the EPA in September 2010. According to the referral documents, the proposal will have an operational mine life of between 13 to 14 years.

The EPA concluded that the project can be managed to meet environmental objectives if appropriate conditions are implemented and met by Cameco. The EPA's advice and recommendations clear the way for the Western Australian and Federal Ministers to decide whether to approve the project and if so, what conditions will attach to an approval. Media reports signalled that critics of the proposal planned to appeal against the EPA's advice and recommendations, but that traditional owners of the land affected by the project welcome the development.⁴

In addition to developments at Kintyre, Toro Energy Limited has acquired the mining interests at the Millipede and Lake Maitland uranium deposits which surround Wiluna. In February 2014, Toro applied to the Federal Minister under the EPBC Act seeking approval to expand mining operations at Wiluna to include these areas.

South Australia – operational developments

South Australia is home to the majority of operating uranium mines in Australia. Recently, the Four Mile mine, located 550 kilometres north of Adelaide, commenced production and new activities have been flagged at Olympic Dam.

On 25 July 2014, BHP Billiton Olympic Dam Corporation lodged a referral under the EPBC Act for a heap leach trial demonstration plant within the boundaries of the existing mine site. According to the referral, heap leaching is being investigated as a means of more efficiently processing copper and uranium at an earlier stage in the processing sequence. The demonstration plant will treat about 36,000 tonnes of ore per annum. The referral remains open for public comment before the Federal Minister decides whether the proposal is a 'controlled action' under the EPBC Act. The trial is intended to confirm the suitability of the technology for commercial implementation and a separate referral process would apply to any subsequent full scale project.

Commonwealth – inclusion of nuclear actions under a 'one stop shop'

The Federal Government is proposing to accredit state and territory approval processes under national environmental law, to create a single environmental assessment and approval process (described as the 'one stop shop') for matters of national environmental significance.

Currently, each state and territory has an 'assessment bilateral agreement' with the Federal Government, which means that eligible projects can be assessed under a streamlined state or territory accredited environmental assessment. However, under existing arrangements, the Federal Minister must still assess the likely impacts of a project and make a decision about whether to approve a project once the streamlined assessment process is complete. Under current arrangements, the ultimate decisions to approve any 'nuclear action' are reserved exclusively for the Federal Minister.

The current 'two tier' environmental assessment and approval process has received criticism from industry as a result of significant projects, including Wiluna Uranium mine in Western Australia, having experienced significant delays as a result of the separate state and federal government environmental assessment and approval processes. Under the proposed 'one stop shop' arrangements, nuclear actions are to be included within the scope of matters for which states and territories will be accredited to make approval decisions. Accordingly, eligible projects will be able to be assessed and approved under a single process to be administered by the relevant state or territory.

All states and territories have executed memorandums of understanding with the Federal Government to develop 'one stop shop' assessment and approval bilateral agreements. The finalisation and implementation of those agreements is expected to take place over the next 12 months.

General trends

Despite depressed global market conditions, activity continues in the uranium exploration and mining sector in Australia.

Uranium mining and other nuclear activities continue to be closely scrutinised, and this is likely to remain the case with the inclusion of 'nuclear actions' in the streamlining of environmental assessments and approvals as part of the proposed 'one stop shop' arrangements. For example, the legal opposition to the nomination of Muckaty Station in the Tennant Creek region of the Northern Territory as a site for a nuclear waste facility confirms that this sector remains contentious with interest groups.