South Australia’s rushed discussion of draconian new legislation for BHP’s Olympic Dam uranium mine
Nectaria Calan, 27 Oct 11, The most concerning and indeed contentious parts that I am familiar with at this stage relate to the water and freehold clauses, and continued exemptions from the Environmental Protection Act and the Aboriginal Heritage Act.
Re: water – the much publicised water levy for Great Artesian Basin Water (and perhaps water from other sources) does not address the increased volume of water to be taken from the GAB (increasing from 37 million litres per day to 42 million), nor the impact that even the current volume is having on the mound springs in the region. …
Clause 24 provides for the Minister to grant the entire 49, 700 ha of the proposed expanded mining lease (as estimated in the EIS) to BHP as freehold title free of charge. This is a huge area to be simply given away by the State Government to one mining company, and amounts to a huge subsidy for the company. The most contentious aspect of this clause is that it absolutely dispossesses the Aboriginal custodians of the area by simply giving the land away. One may ask, if the government is so keen to give it away, why they don’t return it to the Aboriginal communities of the region?
This is a new addition to the Indenture – it is not in the current Act.
In particular, the subclauses state that for the minister to grant freehold title he must first be satisfied that either Native Title has been extinguished or that the act of granting freehold will extinguish it. So the intention is clearly to extinguish Native Title if possible. Additionally, I believe (although I am not certain) that once Native Title is extinguished it is extinguished permanently – however this fades in significance when you consider that the land will be returned to the Crown (at the mines closure) contaminated with almost 9 billion tonnes of tailings and after the company has destroyed sacred sites by virtue of digging the biggest hole in the world.
The exemptions from the Aboriginal Heritage Act carry through to the amended Bill (from the current indenture). Both the Indenture Act and amended Bill exempt BHP from key parts of the main piece of legislation in the state providing protection for Aboriginal heritage sites – there is a conflict of interest here as a company with a commercial interest in the land is left to adjudicate the validity of competing non-commercial interests.
Despite the state government claiming last week in a press release that the expansion will be subject to the Environmental Protection Act (by removing the exemption from the Indenture), the amended indenture still lists the Act as one over which the indenture prevails. BHP’s environmental Management Plans are to be over-seen and approved by the Minister rather than the Environmental Protectkion Agency (which would be the norm). This is essentially the same as the current Indenture Act. There is arguable a conflict of interest here also, as the Minister (for Mineral resources and Energy) is a proponent for mining.
The Select Parliamentary Committee established to further inquire into the Indenture Bill is having its first hearing tomorrow. It will be hearing from BHP, the Olympic Dam taskforce (which is a department within the state government, and the Chamber of Mines (an industry body). Clearly all witnesses are uncritical of the Indenture, and at this stage it looks like it will be held behind closed doors. it is also unclear whether they will call for more witnesses on another day.
Make Roxby Downs Indenture Act discussion transparent, and study environmental issues, say Greens
Weatherill must back Roxby words with action, 27 Oct 11 Greens Leader Mark Parnell has welcomed Premier Jay Weatherill’s call for the special Parliamentary Committee examining the Roxby Expansion to be an ‘open process’ that hears from critics of the project.
In response to pressure from the Greens, today’s hearings of the Select Committee into the Olympic Dam expansion legislation were opened up to the media and public. However, at this stage the Committee – made up of 4 Labor and 3 Liberal MPs – has no plans to hear from any other witnesses apart from the 3 pro-expansion spruikers: the Government ODX Taskforce, BHP and the Chamber of Mines, despite other requests from scientific and environmental experts to appear. The Committee has only 2 days left to schedule hearings.
“I welcome the Premier’s intervention, but he has to back his words with action,” said Greens Parliamentary Leader Mark Parnell. “Time is well and truly running out to hear from anyone else. If the Committee is genuine about keeping faith with the Premier, it will make a public call for submissions and offer an opportunity for those who have raised concerns in the past about this project to challenge the assertions made by BHP Billiton and the ODX Taskforce.
“The Greens have forced the door to be opened on these hearings. Now we insist these hearings must be open to other witnesses,” he said. Mark Parnell also rejected the claim by Committee Chair Tom Koutsantonis that the Parliamentary Committee should not be looking at the project’s environmental issues. “The Minister’s claims that the environmental issues with the expansion project were signed away with the EIS approval is rubbish,” said Mr Parnell.
“The Roxby Indenture legislation is all about the deal done with BHP on water, energy, waste tailings, the desalination plant and environmental monitoring. The reason BHP CE Marius Kloppers is crowing to his shareholders that this is a ‘low cost’ project is because SA is bearing all the environmental costs and not getting a fair share of the returns.
“So far, this Parliamentary Committee has failed to rigorously examine this project to ensure our State gets the best deal possible,” he said.
New Olympic Dam uranium mine unlikely to make any money from uranium
The Olympic Dam expansion would cost tens of billions of dollars, and BHP Billiton may want to secure more than longterm contracts to move forward with the expansion
URANIUM Olympic Dam Expansion Has Doubters But China May Hold the Cards. – Nuclear Intelligence Weekly, 27 Oct 11, . While BHP Billiton’s recent statements have indicated a willingness to proceed with the expansion of the Olympic Dam copper, uranium and gold mine, sources throughout the uranium industry are skeptical the project will ever come to fruition…….
An expansion would boost annual uranium production capacity from the current 4,500 metric tons of U3O8
(3,392 tU) to 19,000 MT U3O8 (16,112 tU). But after conducting a thorough outside analysis of the project, the producer said he concluded “it never ever makes money.” Continue reading
Behind closed doors, South Australian govt and uranium miners do Indenture Act deal
BHP’s Marius Kloppers flies in to meet Premier, Adelaide Now, by:State editor Greg Kelton ,October 27, 2011 IN his last
week as premier, Mike Rann flew to Melbourne to negotiate the Olympic Dam expansion with BHP boss Marius Kloppers.
But this week the BHP Billiton chief executive will fly to Adelaide to meet new Premier Jay Weatherill to discuss progress on the mine expansion indenture. The face-to-face meeting follows a telephone discussion at the weekend between Mr Weatherill and Mr Kloppers and a meeting yesterday between Mr Weatherill and BHP Billiton’s president (uranium customer sector group) Dean Dalla Valle…..
Legislation to ratify the agreement was introduced in Parliament last week by former treasurer Kevin Foley, who was minister assisting the Premier on the dam expansion….. On Tuesday the Liberal party room completed two days of briefings on the Olympic Dam project. It will have a joint party room meeting on November 8 to decide its position on the indenture.
The Greens yesterday accused the Government of turning scrutiny of the Olympic Dam indenture into a farce.
Greens leader Mark Parnell said a special parliamentary committee, which has to examine the agreement, was planning to hear from only three witnesses and prevent the media and public from attending the hearings.
Mr Parnell said the only groups invited to present evidence to the committee were the Government, BHP-Billiton and the Chamber of Mines.
“No advertising has been done and the hearings are set to be held behind closed doors,” he said, accusing the Government and Opposition of concocting the committee process. http://www.adelaidenow.com.au/business/bhp-flies-in-to-meet-premier/story-e6frede3-1226177764951
Mike Rann sold South Australia short on Olympic Dam uranium mine
A case of Olympian incompetence by South Australia, THE AUSTRALIAN, BY:PAUL CLEARY ,October 21, 2011 THE royalty agreement negotiated by South Australia for BHP Billiton’s Olympic Dam expansion has robbed the state’s citizens and all Australians of the opportunity to share in the profits of what will become the world’s biggest mine. (at left, Marius Kloppers CEO of BHP BIlliton, and Mike Rann, retiring Premier of South Australia.)
This deal is a monumental example of state government incompetence when it comes to acting as custodian of the nation’s mineral wealth.
South Australia has agreed to a regime based solely on percentages and even cents per tonne of the mine’s production. Mike Rann, who stands down today as Premier, has done South Australians a disservice that will cost them dearly for almost half a century. Continue reading
South Australia’s outgoing Premier contradicts Labor Party policy on uranium to India?
Rann changes tack on uranium sales to India, The Australian, October 20, 2011 “…….The long-serving South Australian Premier, forced by Labor to hand his premiership over to Education Minister Jay Weatherill tomorrow morning, said it was time to think about agreeing to India’s desire to import uranium from Australia……. Mr Rann’s remarks came a week after he signed off on approvals for BHP Billiton’s proposal to expand the Olympic Dam mine in the state’s far north. “It will be the world’s biggest uranium mine,” he said.
Mr Rann was a longstanding opponent of uranium exports to India, and had called potential sales a “grave mistake” and “extremely foolhardy”. While India is Australia’s third-biggest export market, Labor is opposed to exporting uranium to a nation that has not signed the UN Nuclear Non-Proliferation Treaty.
In September, Tony Abbott said the government had made a “great mistake” in reversing the Howard government’s decision to sell uranium to India……
Speaking from France, Resources and Energy Minister Martin Ferguson said the federal government’s policy was clear. “We will only supply uranium to countries that are signatories to the Nuclear Non-Proliferation Treaty and have signed a bilateral agreement with Australia,” he said…..
Australian Uranium Association chief executive Michael Angwin said it was not the Premier’s role to determine which countries uranium could be exported to.
Hindrances in South Australian Parliament to BHP BIlliton’s plan for monster uranium mine
Greens call for inquiry into Olympic Dam expansion, SMH Peter KerOctober 18, 2011 APPROVAL for BHP Billiton’s massive Olympic Dam expansion may not proceed as quickly as the global miner would like, with minor parties in the South Australian parliament seeking to slow the process by attempting to force the company to front a parliamentary inquiry.
The indenture agreement struck by BHP and the SA Government for Olympic Dam will be introduced to the state’s parliament today or tomorrow, and must be approved by both chambers to have any legal power.
The Premier Mike Rann – who will retire on Friday – wants Parliament to approve the bill as soon as possible, and BHP has promised to start spending up to $US1.2 billion as soon as the bill secures passage through the Parliament.
But Mr Rann’s Labor Party does not control the upper house of Parliament, where a group of seven minor party MP’s have the balance of power. Two of those MPs represent the Greens Party, and Greens leader Mark Parnell said the agreement was so important to South Australia’s future it must be fully analysed by a select committee with powers to call and question BHP executives.
Mr Parnell said the delay should pose no problem given BHP does not expect to take a final investment decision until mid 2012. ”What is the point of the SA Parliament cutting corners and rushing this through when the company isn’t going to decide until the middle of next year anyway,” he said.
Mr Parnell wants to quiz BHP over why more processing of Olympic Dam’s copper, uranium and gold could not take place in Australia, as well as the environmental impacts. Despite the approvals process running over many years and through hundreds of pages of environmental impact statements, Mr Parnell said the public had never had a chance to publicly question BHP officials.
“It is time, as Parliament sets to sign off on the biggest deal in South Australia’s history, to finally get some straight answers on this enormous project,” he said. : http://www.smh.com.au/business/greens-call-for-inquiry-into-olympic-dam-expansion-20111017-1ltda.html#ixzz1b9u265hy
South Australian Premier Mike Rann having a bet each way on his uranium “legacy”
Two faced Premier Mike Rann, previously elected as S.A. Labor Party’s spokesman AGAINST uranium mining, went on to be a fervent servant of BHP Billiton. Now he wants to have his “legacy” as having approved. the monster Olympic Dam open cut uranium mine.
BUT – that mightn’t work out. Olympic Damn has a good chance of becoming an environmental and economic nightmare for South Australia. So, just in case, Mr Rann is now piously giving himself the credit for saving Arkaroola Wildreness from uranium mining. (Bad luck, Marathon Resources, your Premier dumped you for BHP.) – Christina Macpherson
Arkaroola protection bill going to SA Parliament ABC News, October 17, 2011 Premier Mike Rann has visited Arkaroola Wilderness Sanctuary to promote this week’s introduction of legislation to permanently protect the area from mining.
The South Australian Premier sees Arkaroola’s protection as some of his last business before he steps out of the limelight…
His Government signed the Olympic Dam indenture with BHP Billiton last week, another key project Mr Rann leaves as his legacy….. New laws will ban all types of mining at Arkaroola and come four years after exploration waste was dumped at Mount Gee in the area by explorer Marathon Resources. Arkaroola also has been provisionally listed on the state heritage register and will be nominated for national and world heritage listing…
Marathon Resources had spent millions of dollars exploring at Arkaroola and its share price has fallen since the mining ban was flagged.It is negotiating with the SA Government for compensation. http://www.abc.net.au/news/2011-10-17/arkaroola-wilderness-legislation-mining-ban/3574300
Grandiose uranium mine depicted as a tourist attraction!
As well as a giant open pit, the company will leave behind a small mountain of unused rocks and a large tailings storage facility, which will need to be fenced off with warnings of the potential for radiation exposure.
Once mining stops, the pit is expected to fill with rising groundwater, creating a vast outback lake that would be up to 350m deep.
BHP Billiton says backfilling is not a feasible option and has suggested the South Australian Government resume control of the pit and turn it into a managed tourist attraction. It says the government would be responsible for building and maintaining viewing platforms and controlling access by tourists, students and scientists.
It suggests the rock storage, where it will dump the ”overburden” of surface rock and soil which will take about five years to remove, should be returned as crown land and could also be used for tourism….
The expanded mine is planned to be productive for 40 years……
Anti-nuclear groups and the Greens have criticised the conditions for not going far enough, but are equally concerned about what will be left behind.
The Australian Nuclear Free Alliance said almost nine billion tonnes of radioactive waste would remain in northern SA. A spokeswoman said if that was acceptable to the SA Government, then it was setting the bar ”extremely low”.
”The radioactive waste will remain on Kokatha and Arabunna country long after BHP Billiton packs up its business and moves on,” she said, referring to traditional indigenous landowners of the region…. http://www.canberratimes.com.au/news/national/national/general/mine-could-one-day-be-a-tourist-attraction/2320845.aspx
BHP Billiton’s proposed desalination plant to exterminate Australia’s iconic Giant Cuttlefish?
Save the Giant Australian Cuttlefish and Upper Spencer Gulf The Point Lowly Peninsula is the only known place in the world where hundreds of thousands of Giant Australian Cuttlefish gather to breed. We need your help to urge the State Government of South Australia to protect this wildlife phenomenon from proposed industrial impacts.
Other fish species also spawn in the area including Snapper, Western King Prawns, Squid, Eagle Rays and Port Jackson Sharks. The Upper Spencer Gulf ecosystem also supports resident dolphin pods plus visiting whales, endangered sealions and turtles.
A desalination plant is currently proposed for the Point Lowly Peninsula. If approved, its operation will release salty brine into this sensitive ecosystem. Scientific studies have shown that increased salinity kills cuttlefish and squid eggs.
The Giant Australian Cuttlefish and Upper Spencer Gulf fish nurseries need your help. Sign and share our petition and urge our State Premier to insist on relocating the proposed desalination plant to a less vulnerable area. http://www.thepetitionsite.com/7/save-the-giant-australian-cuttlefish-upper-spencer-gulf/
Aboriginal elder warns of Kalta – nature’s revenge for huge Olympic Dam uranium mine
THE LIZARDS REVENGE, DLF – Desert Liberation Front, Response to the governments decision to expand Olympic Dam mine. Sleeping underneath the ground there is an old lizard, Kalta the sleepy lizard. The lizard ain’t so sleepy anymore.
BHP is mining right into that Lizards body. The government has just approved an expansion of the Olympic Dam uranium mine, making it the biggest uranium mine in the world.
Kalta is angry and wants revenge. Arabana elder Kevin Buzzacot is calling the people of the world to help the lizard shut down the mine. He is calling for people to come and heal the land in the name of peace and justice for the next 10,000 generations to come.
The land is being irreversibly poisoned in and around Roxby Downs by the tailings dam causing dust and ground water contamination, and contamination of its workers.
The uranium is taken all over the world and used to kill the land and all its creatures. It’s destroying lives not only in Fukashima, with the reactor meltdown, but in the depleted uranium shells that children play with in the streets of Iraq and Kosovo.
With the governments numerous attempts to put a nuclear waste dump at Muckaty in the Northern Territory there is a danger that radioactive waste will be brought back, opening Australia up to accepting nuclear waste from all over the world. Lets stop the deadly cycle where it starts.
The land the lizard and the creatures of this earth are summoning everybody who gives a shit to the gates of Roxby Downs on the 14th of july 2012 for The Lizards Revenge – This is an open invitation to all people and a special call out to artists, musicians and activist community groups and media to get involved in the creation of this autonomous zone for the peace and healing of this land.
Obscenity of BHP Billiton’s Control of Huge Water Resources in Olympic Damn Uranium Mine Deal
VIDEO Mine expansion draws more water from basin ABC News, Paul Klaric, October 14, 2011 Scientists are concerned that the the proposed Olympic Dam mine expansion will put a strain on Australia’s greatest underground water supply. http://www.abc.net.au/news/2011-10-14/mine-expansion-draws-more-water-from-basin/3572500
GREEN LIGHT FOR OLYMPIC DAM EXPANSION THE BLOGGER IS A BHP BILLITON SHAREHOLDER. On 13 May 2011 the company announced a proposal for six-fold expansion of Olympic Dam Mine in South Australia – to extract the most valuable single mineral deposit in the world. The mine will consume up to 42 million litres of water a day from the Great Artesian Basin for plus 40 years.
USE OF THE GREAT ARTESIAN BASIN BY THAT MINE IS THE ISSUE WHICH THIS BLOG ADDRESSES
On 10 October 2011 the South Australian (SA) Government granted approval for the BHP Billiton (BHP) Olympic Dam expansion. The Indenture Bill, signed on 12 October by representatives of BHP and the State Government, will now be submitted to vote in the SA Parliament. The SA government will not terminate or suspend the current licence which entitles BHP to take 42 million litres of water each day for Olympic Dam from the Great Artesian Basin (GAB) – but BHP will in the future pay for GAB water. This failure of the SA Government to protect the best interests of the GAB represents an enormously significant strategic win for BHP.
One small concession to Australia’s environment – BHP to pay a bit for future water grab
(once again – so much news about BHP Billiton and Olympic Dam uranium mine – more items at http://nuclearnewsaustralia.wordpress.com/ )
BHP forced to pay for Great Artesian Basin water, ABC Rural By Annabelle Homer , 13/10/2011 The South Australian Government and BHP Billiton have signed an Indenture Agreement to enable the Olympic Dam mine expansion to go ahead. The Indenture Bill will be introduced to State Parliament next week to enable this agreement to be backed by the full force of South Australian law.
As part of the agreement, the company will now be charged for the water it extracts from the Great Artesian Basin and $350 million a year in royalties will be generated once the project is at full capacity….. BHP has accepted reluctantly they will now come under Environment Protection Agency, they are paying for the first time ever for the Great Artesian Basin water.”
BHP will be charged on the current NRM Board levy rate (currently $0.0318/KL) for the region (capped at $0.10/KL), for a period of 30 years from the commencement of the project.The charge will then revert to the current NRM Levy rate.
BHP will not be required to pay for water being taken on the Special Mineral Lease.
Independent environmental consultant David Noonan says the BHP is not paying enough. “He says the company will be paying $1.3 million to $1.5 million a year for essentially a precious water resource.”
The Bill also includes a 12-month sunset clause, which means the company has one year from when Parliament passes the Bill to get the approval from its Board of Directors to formally begin the expansion. http://www.abc.net.au/rural/news/content/201110/s3338957.htm
How Australian governments gave BHP special treatment, and free groundwater
Public resources for private profit: free water for the largest open-pit mine in the world Coober Pedy Regional Times, by: Nectaria Calan, 13 Oct 11 In August mining giant BHP Billiton announced record financial results for the 2011 financial year, recording a total net profit of US$23.95 billion, nearly double its 2010 figure of US$13.01 billion.Friends of the Earth call for transparency on proposed Whyalla In Situ Leach uranium trial
14 oct 11, Public submissions for Samphire Uranium’s application for an In Situ Leach trial mine closed yesterday. Better known as the Mullaquana project, the proposed trial site is located 20km from Whyalla, 3.6km from the Upper Spencer Gulf. Samphire Uranium is wholly owned by UraniumSA, a new entrant in the uranium mining industry.
In Situ Leach mines pump highly acidic substances into an aquifer to mobilise uranium. The liquid is then pumped out of the aquifer and processed to remove the uranium. The waste liquid is then pumped back into the aquifer.
Two grassroots environmental groups, Friends of the Earth Adelaide and West Mallee Protection, stated in their joint submission that:
“Given the number of risks involved with the proposed Mullaquana trial, particularly the routine contamination of groundwater by heavy metals and radioactive materials associated with In Situ Leach mining…we strongly recommend that this proposal is rejected.”
“Using…questionable, fuzzy logic, attempts are made to argue that low soil productivity and the low quality of groundwater negate potential risks and minimise the impact of contamination…this is essentially saying that it’s okay to pollute soil and groundwater with radioactive materials and heavy metals simply because it is of a lower quality.”
Friends of the Earth Adelaide and West Mallee Protection are calling on PIRSA to reject the application.
“The In Situ Leach method of mining has left numerous sites in Eastern Europe heavily contaminated. In South Australia, there have been over 20 spills at the Beverley In Situ Leach mine. In January 2002 a pipe burst, releasing 62, 000 litres of contaminated water. UraniumSA claim that they have recruited heavily from within this sector,” said Nectaria Calan, of Friends of the Earth Adelaide.
No commercial acid leach mine in the USA has ever been given environmental approval because of the high risk of contamination.
“Given UraniumSA’s public commitment to transparency, we are calling on the company to commit to making publically available the In Situ data that will be obtained during the trial, and the models they use to obtain it,” stated Ms Calan.
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