Senate Inquiry found big faults in Australia’s uranium industry
Dave Sweeney: Nuclear pain outweighs economic gain for South Australia THE ADVERTISER FEBRUARY 10, 2014 “…….Since the Fukushima accident began in March 2011 there have been repeated and wide-ranging calls for an independent review of the costs and consequences of the Australian uranium sector, here and abroad. Predictably – and sadly – these have been ignored by uranium companies, the industry’s lobby association and successive Australian governments.
The most recent independent assessment of the Australian uranium industry – a Senate Inquiry in October 2003 – found the sector was characterised by underperformance and non-compliance, an absence of reliable data to measure contamination or its impact on the environment, and an operational culture focused on short-term considerations.
The small economic gain from uranium can mean big pain. There is a compelling case that Australia’s uranium trade is a major source of domestic and international risks and that an independent inquiry is needed into its effects on the environment, health, safety and security.
SA is blessed with renewable energy resources and is well placed to become a national and indeed global leader in renewable energy production. Renewables are the fastest-growing energy sector in the world and already provide more global electricity every day than the contested, costly and contaminating nuclear sector.
Radioactive waste, legacy mine sites and risky reactors all last far longer than the shelf-life of any politician or the tenure of any industry group. Uranium mining and the wider nuclear industry are high-risk, low-return sectors that pose unique, unresolved and long-lived threats.http://www.adelaidenow.com.au/news/opinion/dave-sweeney-nuclear-pain-outweighs-economic-gain-for-south-australia/story-fni6unxq-1226822892221
Cameco to decrease activities in Australia. Paladin shuts African mine
Weak uranium prices force closure of Paladin mine, Financial Review PETER KER AND ANGELA MACDONALD-SMITH 10 FEB 2014 Uranium miners are starting to cut back production amid a growing belief that the sector will not recover in the near term.
ASX listed Paladin Energy has confirmed one of its two mines will cease production until the uranium price recovers, while one of the world’s biggest uranium miners, Cameco, has cut its growth schedule and warned the ‘‘stagnant, over supplied’’ market was not going to improve any time soon.Cameco had previously promised to increase uranium production by 50 per cent over the next four years, but on Saturday the company said such long-term production forecasts were no longer appropriate in the current market conditions.
‘‘Market challenges have persisted since early 2011 and we expect they will continue for the near to medium term,’’ the Canadian company said in a statement.
Uranium prices have been on a downward trend since the Fukushima nuclear crisis damaged confidence in the industry in 2011……
Cameco deferred its Kintyre uranium project in Western Australia in 2012, and on Saturday it vowed to ‘‘decrease activities in Australia’’ even further.,,,,,,http://www.afr.com/p/business/companies/weak_uranium_prices_forces_closure_6Jq1zMnOONO3LAxC4jQkTM
At last! Notorious (Australian) Paladin uranium mine in Malawi shuts down
Paladin uranium mine shuts, PAUL GARVEY, THE AUSTRALIAN FEBRUARY 08, 2014 PALADIN Energy has bowed to persistently low uranium prices and moved to stop production at its Kayelekera mine in the southern African nation of Malawi.
The mine, which has been in production since 2009, has been bleeding money in recent years……
- Last month Paladin sold a 25 per cent stake in its flagship Langer Heinrich mine in Namibia to China National Nuclear Corporation for $US190m, as well as debt refinancing.
GOVERNMENT IGNORES UN RECOMMENDATION THAT WE ASSESS FULL COSTS OF URANIUM MINING
“…..…Recommendation For Assessment Of Environmental And Societal Costs Of Uranium Mining Hansard Page: 13 Question Date: 18 November 2013 Senator Ludlam asked:
Senator LUDLAM: It probably makes more sense to have your answer in front of me, rather than this back-and-forth across the table. What steps have been taken by the Commonwealth, or any agencies, or indeed your agency, to address the UN Secretary-General’s September 2011 recommendation that Australia conduct an in-depth assessment of the net cost impact of mining fissionable materials—that is, uranium—on local communities and ecosystems? It was an SG recommendation of 2011—…..
Mr McAllister: I can look into it, yes.
Toro’s Wiluna uranium project’s costs blow out: not a good omen
Just a quick update on Toro – they released their quarterly report yesterday – revealling the estimated start up costs of the Wiluna project has jumped $47 million. With a slump in the uranium price, lack of new investments in mining, and a $47 million cost blow out before they’ve even got final approval does not bode well… http://www.businessnews.com.au/article/Toro-reveals-Wiluna-cost-increase?utm_source=Business+News+Mailing+List&utm_campaign=75e9eadd22-dba&utm_medium=email&utm_term=0_e5391356e5-75e9ead
ERA uranium company’s losses, and closed operations due to radioactive spill
ERA narrows loss to A$136m, says toxic spill probe continuing Mining Weekly By: Esmarie Swanepoel 31st January 2014 “…..During the year, revenue from sales decreased 10%, to A$355.8-million, while revenue from continuing operations was down 12% on the previous financial year to A$370-million…..
ERA produced some 2 960 t of uranium oxide in the year under review, which was 20% less than that produced in 2012, as lower mill rates affected output. The suspension of processing operations following the failure of a leach tank in December also negatively affected operations, ERA said.
Processing operations at the Ranger mine, in the Northern Territory, remain suspended pending the completion of a full investigation and regulatory approvals to restart.
ERA was conducting an independent investigation that would run in parallel with the government investigation.http://www.miningweekly.com/article/era-narrows-loss-to-a136m-says-toxic-spill-probe-continuing-2014-01-31
Uranium enrichment plant for Australia? A really bad idea
In such a negative climate, it is not particularly accurate to suggest that the region is a ‘nuclear growth area’.
Reader riposte: N enrichment in Australia and beyond http://www.lowyinterpreter.org/post/2014/01/20/Reader-riposte-N-enrichment-in-Australia-and-beyond.aspx 20 January 2014 Richard Broinowski writes:In his speculative piece on a regional uranium enrichment plant in Australia, John Carlson gets a few things wrong.
First, it is inaccurate to suggest that but for Labor’s opposition, Australia might now be well on the way to establishing a uranium enrichment facility. Whitlam’s Minister for Minerals and Energy, RFX Connor, very much wanted to establish such a plant. Only Whitlam’s untimely fall from grace following the Khemlani affair brought Connor’s plans to a halt.
Nor can opposition to such a scheme only be laid at the feet of Labor. McMahon scotched Gorton’s plans for a nuclear reactor at Jervis Bay in 1971-72. Mindful of deep and pervasive suspicion of nuclear technology in the Australian community, many Liberal politicians continue to be extremely coy about giving any support for an Australian nuclear industry.
Second, on what grounds does John assert that the Asia Pacific is a major growth area in nuclear power? Continue reading
Chinese nuclear firm saves Australian firm Paladin – for now, anyway
Top China nuclear firm rescues Paladin Namibia uranium mine Business Recorder, 20 January 2014 by Umer Qazi MELBOURNE: China National Nuclear Corp has agreed to buy a The sale rescues Paladin, as it urgently needed to raise funds following three years of pain as uranium prices slumped after the Fukushima disaster, which killed Japanese demand for the fuel and led other countries to halt nuclear expansions.
“Paladin’s out of the woods for the short to medium term. But longer term they need higher uranium prices to pay back their convertible note,” said Simon Tonkin, an analyst at Patersons Securities…….
The company had little bargaining power with uranium prices hovering at $36.05, or nearly half the price they were at before the Fukushima plant was crippled in March 2011…….
While Paladin has booked heavy losses, it is in better shape than rival Energy Resources of Australia Ltd, controlled by Rio Tinto , which had to suspend processing uranium ore after radioactive slurry leaked from a leach tank at its Ranger operation in Australia……http://www.brecorder.com/top-news/109-world-top-news/153926-top-china-nuclear-firm-rescues-paladin-namibia-uranium-mine.html
South Australian government gives grant to uranium leach mining company
UraniumSA receives grant for Samphire Uranium project in South Australia Friday, January 17, 2014 by Proactive Investors UraniumSA (ASX:USA) has received a $50,000 grant from the South Australian Government to advance metallurgical test work for its Samphire uranium deposits in South Australia
UraniumSA will work in collaboration with the University of South Australia’s Ian Walk Research Institute to focus on finding a more efficient process for the removal and recovery of uranium from saline leach solutions, and to advance UraniumSA’s existing data and process understanding.
This grant will facilitate the continuation of recent research and test work by UraniumSA which aims to optimise pathways for uranium recovery from hyper-saline solution……http://www.proactiveinvestors.com.au/companies/news/51977/uraniumsa-receives-grant-for-samphire-uranium-project-in-south-australia-51977.html
Accidents and dismal uranium prices plague Paladin Energy
Paladin revenue dwindles as output rises Justin Niessner Wednesday, 15 January 2014 PALADIN Energy recorded strong production figures for the December quarter but posted lower sales revenue on a stubbornly weak uranium price.
Revenues for the quarter were down 31.6% year on year at $US101.7 million ($A11.2 million) on the sale of 2.8 million pounds of uranium oxide. It represents roughly the same sales volume compared to a year ago but at a 23.8% lower price of $36.67 per pound of uranium oxide……
Safety was a difficult issue for the company over the period, with an electrical incident sending three workers to hospital in early October. The company confirmed that the most seriously injured worker died on October 29. Two lost time injuries were recorded as a result of the incident…..
a price of at least $70/lb would be necessary to support new uranium supply Earlier this week Paladin said it would not pursue development of its Manyingee project in Western Australia due to the low uranium price. http://www.miningnews.net/storyview.asp?storyid=801876475
Paladin Energy slashing costs in “unsustainable” uranium industry
Paladin Energy uranium mine sale expected in coming weeks, Mining Australia 15 January, 2014 Vicky Validakis Paladin Energy said talks around the sale of its Langer Heinrich uranium mine were progressing as the price for uranium continues to deteriorate.
The Perth-based miner flagged its intentions to sell its stake in the African mine in August when it announced a raft of cost-cutting measures to combat the weakening price of uranium.………While Borshoff the project was a long-term play for the miner, he said the stubbornly low uranium price meant all new developments had been put on the backburner.
“It’s unsustainable at the moment,” Borshoff said.
“Everyone has declared a moratorium on new projects. It’s all hanging by a thread and at some point this year it has got to turn.” Last year the company made a $US173 million loss in the three months to June.
Paladin signalled it would slash corporate and exploration costs by $US10.8 million, a 24 per cent reduction……..Paladin has five uranium exploration projects operating in Australia. http://www.miningaustralia.com.au/news/paladin-energy-uranium-mine-sale-expected-in-comin
Following tank rupture, outlook dim for ERA’s Ranger uranium project
Leach tank failure impacts ERA’s uranium production results, Mining Australia,10 January, 2014 Vicky Validakis Production at ERA’s uranium mine took a 60 per cent hit in the December quarter after a leach tank rupture forced operations to close at the site.
While a slight fall in production was expected after the completion of mining in the high-grade open-cut Ranger pit, matters worsened for the miner when a leach tank at the site’s processing plant ruptured and collapsed, causing an acidic radioactive slurry spill.
The incident forced the shutdown of operations and a massive clean-up at the site, with the Federal Government announcing the mine will not be able to restart production operations without regulatory approval and the go ahead from a joint operation taskforce.
Processing operations remain suspended while clean-up and recovery operations at the Ranger processing plant are ongoing.
In an ASX announcement the Rio Tinto-owned ERA revealed uranium production for the December quarter was 503 tonnes, down 17 per cent on the preceding September quarter and 59 per cent down on the previous corresponding period.
The fall cut annual output by 20 per cent to 2960 tonnes……..approval may be difficult to come by with the Mirrar people previously stating that a number of safety incidents at the site had caused distrust.
In early November a mine left the site’s controlled areas sparking fears of contamination, while later that month four uranium storage barrels were discovered in bushland near Darwin.
“Day by day, litre by litre, incident by incident, they’re losing whatever trust traditional owners have in them,” Mirrar spokesperson Justin O’Brien said. http://www.miningaustralia.com.au/news/leach-tank-failure-impacts-era-s-uranium-productio
Uranium company ERA’s “horror year” continues
Production slump caps a horror year for ERA BARRY FITZGERALD THE AUSTRALIAN JANUARY 10, 2014 RIO Tinto’s listed uranium subsidiary Energy Resources of Australia (ERA) has finished off a horror year by reporting a near 60 per cent slump in December quarter production from its Ranger mine in the Northern Territory.
A severe production fall was expected because of the absence of high-grade material following the cessation of mining operations in the open-cut at Ranger. But things got worse on December 7 when a leach tank at the processing operations collapsed, forcing a shutdown for clean-up and a wait for regulatory approval to restart processing operations. … (registered readers only) HTTP://WWW.THEAUSTRALIAN.COM.AU/BUSINESS/MINING-ENERGY/PRODUCTION-SLUMP-CAPS-A-HORROR-YEAR-FOR-ERA/STORY-E6FRG9DF-1226798542510#
Australia willing to market uranium to Indonesia, despite nuclear weapon worries.
Threats of a nuclear Indonesia and a provocative New Guinea BRENDAN NICHOLSON DEFENCE EDITOR THE AUSTRALIAN JANUARY 01, 2014 AT a time of frosty relations with Jakarta, the Hawke government was warned that Indonesia ultimately might aim to obtain nuclear weapons.
Cabinet also was concerned that Australia might be drawn into conflict in the region as the result of impulsive and unwise behaviour by a poorly led government in Papua New Guinea……..
Despite the concerns raised in the briefing paper about Indonesia’s possible nuclear ambitions, it went on to suggest that Australia might supply Indonesia with uranium to increase its influence with Jakarta and to serve its “commercial, strategic and non-proliferation objectives”.
The paper said the nuclear program should be closely monitored, and it warned that a nuclear accident in Indonesia could have serious effects on areas of northern Australia…….http://www.theaustralian.com.au/in-depth/cabinet-papers/threats-of-a-nuclear-indonesia-and-a-provocative-new-guinea/story-fnkuhyre-1226792638737#
Olympic Dam uranium mine won’t replace Holden jobs
27 Dec 13 “The stalled Olympic Dam mine expansion is not the answer to job 
creation in South Australia, despite the Prime Minister’s vivid imagination”, according to Greens SA Parliamentary Leader, Mark Parnell MLC
“What the PM should be doing instead is focusing on how best to help South Australian industries create jobs in areas where we have a real competitive and natural advantage. 
If he opened his mind to the possibilities, he would see that SA is a leader in renewable energy and there is great potential for jobs growth in wind power, solar PV and in the emerging area of Solar Thermal, such as that proposed for Port Augusta to replace the existing dirty coal fired power stations. [See:http://bze.org.au/repower-port-augusta]
“That’s why the Prime Minister’s decision to axe the Clean Energy Finance Corporation is bad news for South Australia. It’s also why we should be very worried about his likely decision to water down the Renewable Energy Target. This target is the reason why so many energy companies chose to invest in South Australia over the last few years – because our abundant wind and solar resources give us the edge over other States in the grid.
“Liberal leader, Steven Marshall should be horrified at what his party is doing to South Australia’s future economic opportunities and he should be calling on the PM to change direction. Continue reading
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