BMedia  :E“ Release. ____________________________lY-U. 71 __________________________RANGER URANIUM PROJECT(Statement by the Deputy Prime Minister and Minister for Trade and- Resources, the Rt Hon.  J.D. Anthony, M.P.).  The Government decided today that it will divestof its interests in the Ranger uranium project and'that it wishes to accept the offer submitted by Peko-Wallsend Ltd to acquire those interests through a new company - Energy Resources of Australia Ltd.On the authority of^he Government, I explored the -  possibility of disposing of its interests in the project.Discussions have taken place over the past six weeks with twelve of the organisations that had submitted .  proposals for the acquisition of the Government's interestsin the project. Each of the organisations concerned was able to clarify its original proposal and to revise it in the light of the discussions. All proposals now before the .  Government have been carefully and fully considered.In view of the fact that the Government has received an attractive offer from an Australian company, with arrangements that will ensure long term.sales contracts, the .  Government believes divestment is in the national interest. .The assignment process.will ensure that the Government's .  obligations to the aboriginal people in respect of the Ranger Ã¢ÂÂ¢a  project will not be affected by its decision and theGovernment will, ensure that the environmental requirementsÂ·.  .of the project are fully carried out. Similarly the 'Government's policies in relation to mining, marketing and safeguards matters will not be affected.The Government therefore sees no need for its -  continued involvement in the actual mining operations at .  Ranger when these can be undertaken by reputable private interests. This action will also relieve the Government of $200 million capital payments in relation to the project over the next two years. .. . . / 2

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The proposal submitted by Peko-Wallsend Ltd is  regarded by the Government as the most attractive of the  offers received. The Company has offered a cash premium  of $125 million payable upon execution of a firm contract,

in addition to reimbursing the Government in respect of . past expenditures and meeting the Government's future .   financial obligations in respect of the project.

Peko-Wallsend Ltd, in announcing on 2nd October, 1979, that it had lodged a proposal with the Government, . indicated that it intended to combine its 25% interest in  the project with the Government’s 50% interest, within a  new Australian Public Company to be formed to acquire the

entire 7 5%' interest. The new company, Energy Resources of  Australia Ltd., would include,  with Peko-Wallsend Ltd, the  widest participation' of the Australian investing public and

financial institutions. A maximum of 25% of the equity  capital of the new company would be taken up by major overseas-  electric power utilities, who, as a condition, will bring with  them sufficient sales contracts to ensure the immediate  viability of the project.

'  In reaching its decision the Government recognised its obligation to the Australian public to receive a fair  commercial price for a valuable public asset.  The price a offered by Peko-Wallsend Ltd <3s considered fair and  reasonable.

The disposal of the Government1s interests on the .   basis proposed will bring a market for a major portion of  Ranger output and involve power utilities from countries with  which Australia has important trading links, including  Japan, the United Kingdom and the Federal Republic of

Germany.  I am pleased to see overseas users of uranium  involved in this important project, while still ensuring that  it remains firmly under Australian control. The proposed Â· assignment to one of the existing partners in the project

should also ensure that its development proceeds on a sound .   basis and without interruption.

The Government will now proceed to negotiate the  detailed arrangements with Peko-Wallsend Ltd to finalise the  terms of an assignment in order that the relevant provisions  of the Ranger Government Agreement may be fully followed and  the rights'of all parties under that Agreement fully protected.

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Canberra, 18th December, 1979

