The Australian government is mulling giving mining permits in the once prohibited Woomera defense area to develop resource projects estimated to be worth as much as A$35 billion ($38.2 billion).

Defence Minister Stephen Smith said in a statement, "A new management framework will be introduced to increase use of the Woomera prohibited area in Australia's national interest by better balancing national security and economic considerations."

He said the projects involve iron, ore gold and uranium which could be implemented within the next 10 years.

The Australian government established the Woomera defence site in the remote town in South Australia state in the 1940s as a site for rocket launches.

In March 2009, the government rejected a A$2.6 billion bid by state-owned China Minmetals Corp. for OZ Minerals Ltd., citing national security concerns as the Prominent Hill mine was located near Woomera.

But Smith clarified the site is still being used for military purposes and added that the plan would be developed over six months.

"Its remoteness and size makes it a unique location for large-scale and long-range weapons testing. At the same time, the new timeshare arrangement will allow greater access, and greater certainty of access by the resources and energy sectors," Smith said in the statement.