Australian Labor scraps ban on new uranium mines

SYDNEY, Apr 28 (Reuters) Australia's centre-left Labor Party scrapped its 25-year ban on new uranium mines today in a move miners said would encourage new investment and growth in the industry.

But after a divisive debate at the part's national policy conference in Sydney, 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, the party holds 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 is not binding on state governments, but adds some certainty for mining companies wanting to mine for uranium in other states, particularly South Australia and the Northern Territory where Australia's three existing uranium mines operate.

The state premiers of Western Australia and Queensland, which hold most of the 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.

Environmentalists, including about 100 members of the Greens party who protested outside the conference, condemned Labor's new policy but the Australian Uranium Association hailed the move as a significant development for uranium industry.

''For the first time in 30 years there is bipartisan support for the uranium industry, and that will allow our industry to invest and grow,'' association chief executive Michael Angwin told Reuters.

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

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