-Statement by the Minister for National Development,

Mr R.W. Swart2, and the Minister for the Interior,

Mr Peter Nixon-

The Minister for National Development, Mr R.W. Swartz,

and the Minister for the Interior, Mr Peter Nixon, in a joint

statement, announced today that the Government proposed to

cease production of uranium oxide, in the Rum Jungle area of

the Northern Territory about April 1971-, as the supply of

uranium ore which could be treated economically will be exhausted

after the present stockpile has been processed.

The Ministers stated that after the discovery of '  .

uranium mineralisation at Rum Jungle in 1949 by Mr. J.M. White,

the Commonwealth undertook development of the deposit, and the

subsequent operation became one of the major industries of the

Northern Territory. A township was established at Batchelor

and a treatment plant commissioned at Rum Jungle in 1954 to

treat ore from the initial discovery. The whole operation was

managed on behalf of the Australian Atomic Energy Commission

by Territory Enterprises Pty Ltd, a subsidiary of Conzinc

Riotinto of Australia Ltd.

Over the years extensive exploration has been carried

out in the area by the Bureau of Mineral Resources and Territory

Enterprises Pty Ltd on behalf of the Australian Atomic Energy

Commission. This led to the discovery of uranium ore bodies

at Dysons, Rum Jungle Creek South and M t . Pitch, and to base

metal discoveries including Browns lead deposit, the Intermediate

Copper Prospect and Y/oodcutters Lead/Zinc Deposit, with the

exception of Mt. Pitch the known uranium ore bodies have been

mined and the ore treated at the Rum Jungle plant to produce

uranium oxide. The Intermediate Copper Prospect was mined by

Australian Mining and Smelting Co. Ltd.

The entire operation at Rum Jungle has been an

outstanding success, and a valuable stockpile of uranium oxide

produced At Rum Jungle has been established at Lucas Heights.

However, it is inherent in all mining projects that a stage

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will be reached when the ore body is either exhausted or the

grade “of ore available does not economically justify extraction.

The treatment of the stockpiled ore at Rum Jungle will be

completed during 1971. The Government has therefore decided

that it would be uneconomic to continue activities in the area

following completion of the treatment of the stockpiled ore,

The Ministers a.dded that the Commonwealth's uranium

needs in the foreseeable future can be met from the existing

stockpile at Lucas Heights and known uranium reserves. In

addition, the current rate of exploration for uranium in other

areas of Australia was. encouraging.

Looking to the future of the Rum Jungle area and the

township of Batchelor, the Ministers said that many companies

have shown interest in obtaining mineral prospecting rights

over areas within the 1600 sq. mile reserve for which applications

have been called, and the Government expects to announce the

successful applicants shortly. The Government also proposes *

to release for exploration by private enterprise in the near

future the area of 100 sq. miles currently reserved for the

purposes of the Australian Atomic Energy Commission.

The potential of these areas for other mineral discoveries

is good and their release will stimulate a great deal of interest

by exploration companies which have the resources and are

prepared to undertalee adequate exploration programmes.

The Ministers said there were prospects for development

of the Woodcutters Lead/Zinc deposit which was discovered by

the Bureau of Mineral Resources and was currently under .  __

intensive exploration and assessment by private enterprise,

although the size and grade of the deposit have yet to be

determined.

Brown's Prospect, a large low grade lead deposit,

was also located at Rum Jungle. The feasibility of developing

this deposit has yet to be established. The general area

also contained several known small deposits of iron ore.

The Government is hopeful that further investigation

of the known prospects and/or additional discoveries will

result in new developments in the area and lead to the

maintenance of the township of Batchelor as a mining centre

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ibr the region for many years to come.  'The Government is also

looking at the prospect of other activities in the area which

might make use of some of the facilities at Batchelor.

Canberra,

Darwin.

26th June 1970.

