Council Warns Australia’s Position as Top Global Supplier of Uranium at Risk Due to Domestic Restrictions on Shipping
The Uranium Council has warned in a high-level advisory report to Australian energy and resources ministers that the country's position as top supplier of the mineral is at risk. The council blamed the development on domestic restrictions in shipping uranium.
Although Australia owns over a third of global reserves of uranium, it is being overtaken by Kazakhstan and Canada, the report pointed out.
The report said that domestic shipping restrictions could cause potential buyers to seek other sources of uranium. Other related problems include public misconception about the resource, repetitive and unneeded environmental assessment procedures and higher capital and operating costs.
"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," The Australian quoted the report.
Despite efforts of the federal government to boost the country's uranium sector such as pushing for sales of the resource to India, these issues hinder the initiatives, the report said.
The report came out at about the same time that Toro Energy failed to secure final approval from Environment Minister Tony Burke to build the country's next uranium mine. Mr Burke asked for an extension of time in deciding Toro's application for its Wiluna Uranium Project. He moved the deadline to issue the decision to March 31, 2013 from Dec 18.
WA regulators have actually given Toro the green light. Mr Burke's action appears to counter a pledge from the federal government to streamline approvals for major resources projects through the creation of a single process run by the states.
"There will be a gap of up to six months between the decision of two jurisdictions, when the bilateral agreement was meant to ensure a harmonisation of the process," Brisbane Times quoted Toro Chief Executive Greg Hall.
However, the Conservation Council of Western Australia defended Mr Burke's delay since the minister needed to get more information. The Conservation Council said the Toro project is ill-conceived due to measures for the storage of tailings deemed inadequate to meet federal approval.
