Australian LP scraps ban on new uranium mines

Sydney, Apr 28: Australia's centre-left Labor Party scrapped its 25-year ban on new uranium mines today after a divisive debate at the party's national policy conference in Sydney.

But Labor maintained its staunch opposition to nuclear power or any nuclear enrichment industry in Australia, which holds about 40 per cent of the world's uranium.

While Labor is in opposition nationally, Labor is in power in all of Australia's six states and two territories, and the state governments continue to hold the powers to approve or veto mining developments.

The new policy adds some certainty for mining companies wanting to mine uranium, particularly in the South Australia state and the Northern Territory where Australia's three existing uranium mines operate, but is not binding on state governments.

The state premiers of Western Australia and Queensland, which hold most of Australia's untapped uranium reserves, said they would continue to use their powers to stop new uranium mines.

''The Western Australian Premier and I have made it clear ... -- and we are the resource states -- we won't be mining uranium. We'll keep it exactly as it is,'' Queensland state Premier Peter Beattie told reporters on Saturday.

Labor's new policy came as conservative Prime Minister John Howard announced plans on Saturday to help expand Australia's uranium industry to make it easier for companies who might want to develop nuclear processing or nuclear power in Australia.

Australia has no nuclear power or enrichment industry, but a government report last November said Australia could have a viable nuclear enrichment and nuclear power industry within 15 years as the cost of coal-fired power increases.

Howard, a strong supporter of nuclear energy and uranium exports, said his government would move soon to overturn laws which prevent nuclear activities in Australia, and would introduce laws in 2008 to set up a nuclear regulatory regime.

''In light of the significance of global climate change and as the world's largest holder of uranium reserves, Australia has a clear responsibility to develop its uranium resources in a sustainable way -- irrespective of whether or not we end up using nuclear power,'' Howard said today.

His move ensures nuclear power and enrichment will be key issue for voters at national elections, due in the second half of 2007.

Reuters>