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| Western Desert - home to the 4 approved WA uranium mines - photo Elizabeth Murray |
One
curiosity in successive WA governments’ approach to uranium mining, approvals,
and related expensive court costs, is that the unsustainable
price of uranium
is widely
known.
It was even
investigated by South Australia, which funded a Royal Commission into the
viability of the Nuclear Energy Cycle just four years ago.
The 2015
Royal Commission found despite known cost benefits of uranium, an uncertain and
oversupplied market rendered development of the state’s uranium processing
capabilities uneconomic until 2026 at least. (Jacobs' approvals were in 2017, Price's 2019 - still another 7 years to go...)
It also
flagged dire public concerns over the use and development of uranium, which would render political involvement in the process futile.
Cameco and
Toro, owners of three of WA’s uranium projects, have reported that they are
taking a wait-and-see approach with the market downturn.
Toro has
commenced gold exploration on their Wiluna site, and it is clear they are
looking for workable solutions to uranium’s current financial dead end. An
existing gold mine is already in the region and has generated far less
community concern and resistance than uranium proposals.
Cameco’s
2019 first quarter report last week reassured shareholders by saying that its
WA operations – Yeelirrie and Kintyre, were ready should the uranium price recover
at some point in the future.
Around the time of WA Environment Minister Albert Jacob’s pre-election
approvals (now former minister), Cameco had already quite openly taken protective steps to steel
itself against the declining market.
The company had redirected the Australian
CEO to Canada and shuttered two of its largest uranium mines (in Canada) that
produced as much as 10% of the world’s uranium supply.
Despite WA
government media statements lauding the future jobs and wealth those projects
would create, there the Barnett government included no fine print about the
spiralling financial decline of uranium and processing.
The 2017
government justifications for the project approvals of plentiful jobs, and vast
economic returns, right before the last state election, have an eerily similar
ring to Minister Price’s pre-election approval.
In contrast
however, Vimy recently told media its Mulga Rock project is proceeding to
secondary permitting and licensing, and that it had been “allowed through” Labor’s
uranium mining ban.
Labor
clearly stated in 2017 it would not enact their uranium mining ban
retrospectively, due to government fears previously approved companies (Cameco,
Toro Energy and Vimy Resources) could sue.
This blog
revealed last week, it also does not stop uranium exploration by dedicated
uranium exploration companies.
Notably, since Kyrgyzstan
declared it would implement a uranium mining ban last month due to public
pressure, its one uranium mining company, Azarga, has simply suspended
production even though it has not had its license revoked.
The unfinancial price of uranium has stalled uranium mining in WA for the time being and Vimy is evidently taking
care of administrative business until it rises. Hence, the flexuous
WA uranium mining ban does not at this stage, or in the near future, look like it has any
challenges except for those posed by its own limitations.
Vimy’s persistent optimism amid longstanding unprofitable
markets, appears to be a firm public relations policy differentiating it from the ongoing, candid comments of its rivals on market
conditions.
Vimy’s
stance on public communications more generally has drawn questions
and criticism in the past
(ASIC was approached for confirmation of
the two matters but said they could not confirm or deny
complaints).
The company has
sought to move
in response to the uranium probe in the US; two US-based suppliers have
called for a 25% domestic stake in uranium supply.
Some have speculated that potential
supply and demand problems stemming from changes in US trade policy may see the
price rise.
##NB Dr
Cameron Murray, who is the author of the Australian Institute report linked
above is not related to the author of this blog.
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| Camp - Australian Outback, Photo - Elizabeth Murray |
