Australia Approves Uranium Mine Expansion Plan
AUSTRALIA: August 29, 2008
SYDNEY - Australia, which is looking to sell more uranium overseas to meet
growing demand for nuclear power, on Thursday approved a proposal by
Heathgate Resources to expand its outback Beverley uranium mine.
The approval, announced by Australia's environment minister Peter Garrett,
will allow Heathgate to produce up to 1,500 tonnes of uranium oxide a year.
Heathgate, which is a private company, as a matter of policy does not
disclose current production runs, a company spokeswoman said.
In a statement, the company said it welcomed the government's approval and
looked forward to receiving clearance to dig a second mine next year.
Heathgate has also lodged an application to develop the nearby Four Mile
deposit, located about 10 kilometres (6 miles) northwest of the Beverley
mine in northern South Australia state through an affiliate company, Quasar.
"I am satisfied that the tough conditions attached to this approval will
ensure the highest standards of environmental management by the mine
operator," Garrett, a former rock singer with the band "Midnight Oil" and
once a vocal critic of uranium mining, said in a statement.
Australia, with no nuclear power industry of its own but sitting on the
world's single largest source -- BHP Billiton's Olympic Dam deposit -- now
mines about 10,000 tonnes of uranium oxide a year.
Uranium mining is allowed in South Australia state and the Northern
Territory, but is banned in Western Australia and Queensland states.
Opposition to uranium mining has its roots in Australia's anti-nuclear
movement in the 1970s.
With its vast reserves, Australia could supply around 36 percent of the
world's uranium needs, though the ban on new mines in most states has
reduced that to about 23 percent.
Parts of Africa and Eastern Europe are emerging as competitive suppliers of
uranium oxide to the world's nuclear reactors, numbering around 440 and
growing, according to the Australian Uranium Association.
Another mining company, Energy Resources of Australia Ltd 68.4 percent-owned
by Rio Tinto Ltd signed an agreement in July to supply uranium to a Chinese
electric utility, which followed signing of a bilateral safety pact between
the Chinese and Australia governments. (Reporting by James Regan; Editing by
James Thornhill)
REUTERS NEWS SERVICE
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