P R IM E  M IN IS T E R

Press Statement No.  12 March 1975

OIL AND URANIUM EXPLORATION  GOVERNMENT GUIDELINES

.  - The Government reaffirms that it seeks Australian participation, in oil exploration, but has decided that  foreign companies undertaking oil exp]oration in  Australia need not necessarily seek Australian participation

at the initial or 'grass roots’  level of their exploration  activities i.e. up to the detailed proving stage, but that  in exploitation and development beyond these stages, the  Australian Government expects such companies to offer

Australian interests, private and public, every reasonable  opportunity as is practicable for participation in these  projects.

The Government reaffirms that the development  of any oil discoveries, as for minerals generally, will  be subject to approval by the Government in accordance  with the guidelines published by the Pri.me Minister

on 3 November 1974.

The Government makes clear too, that search  for uranium in the Northern Territory will be done only  by the /Atomic Energy Commission. E:xport licences will  not be issued where there is exploration with foreign  participation arranged after 31 October 1974. The  Australian Atomic Energy Commission will be the only  exporter of uranium wherever found.

CANBERRA. A .  C .  T .  .

GUIDELINES FOR FOREIGN EQUITY PARTICIPATION IN  AND CONTROL OK THE MTNING INDUSTRY

(i)  Development in An;;tra1 i  an . 1  nterestu

The Government's basic aim is to ensure thee Australia's  mineral resources are developed in such a way as to briny maximum  benefits to the Australian people. If this objective is to be  achieved,  ultimate responsibility for the exploration,  development

and processing of minerals must rest with Australians :  all  enterprises, whether Australian or foreign-owned,  engaged in  exploration, development or processing,  must conform with the

national interest. The Government will use all of its powers,   including its export and exchange control powers, to achieve  this aim.

(ii) .  Equity, Control and Ownership

The Government desires, as a major objective, tq promote  Australian equity in and .control of its resources and industries,   and maximum Australian ownership compatible with Australia's longÂ­ term capitcil requirements and its needs for access to markets,

advanced technology and know-how. The Government recognises,'  however, that many of the important existing enterprises engaged  in the development of Australian resources are under foreign  equity control. For this reason, the promotion of Australian  equity in and control of our resources and industries must be  viewed as a longer-term objective.

(iii) Roles for the Public and Private Sectors

The Government .-recognises that private participation in  exploration and development will continue to be essential. A  maximum level of activity will be achieved only if there is  participation both by public bodies, such as the PMA and the  A I D C , and private enterprises.  The Government recognises also that  participation by companies will be dependent on the prospect of a

return on capital employed which is commensurate with the high  risks sometimes involved.

(iv) Exploration '

The Government seeks Australian participation in mineral  exploration. It believes,  however,  that because of the risks  involved and Australia's limited capital resources,  it is more  important to secure a high degree of Australian equity participation  at the production stage. The development of any mineral discoveries  will, of course, be subject to approval by the Government in  accordance with these guidelines.

(v) Processing

The Government's objective is the maximum level of mineral  processing consistent with the rational use of Australia's resources

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(_v_i )  Consul tations wi t.h flap ÃÂ us bra 3:1 an Government

The Government expects to be informed of all major mineral  development proposals -.by Australian as well as foreign  enterprises - at an early stageÃ¢ÂÂ  The point of contact will be  the Minister for Minerals and Energy who will refer to other  Australian Government Ministers matters coming within their

areas of responsibility - e .  g .  the Treasurer on foreign ownership  and on financing aspects, the Minister for the Environment and  Conservation on environmental aspects, and the Minister for Urban  and Regional Development on urban and regional aspects. This will  assist the Government in ensuring that maximum benefits accrue

to the Australian people as a whole.

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