V 5  URANIUM EXPORT POLICY - MINISTERIAL STATEMENT

BY

t h e  RT. HON. J.D. ANTHONY. M.P..

DEPUTY PRIME MINISTER AND MINISTER FOR TRADE AND RESOURCES

Mr. Speaker - The purpose of this Statement is to set out

the nature of the regulation and control which the Government

will exercise over the export marketing of uranium.

The Parliament will recall that the Government

announced on 25 August 1977 a comprehensive policy for the

further development of Australia's uranium resources. That

policy was based on the findings and recommendations of the

Ranger Uranium Environmental Inquiry conducted under the

Honourable Mr. Justice Fox as Presiding Commissioner.

The Government's policy is one of carefully regulated

and controlled development having full regard to the protection

of the environment and the welfare of the Aboriginal people.

Australia's decision, as announced on 25 August 1977,

to proceed with further uranium development has received wide

acceptance in Australia and abroad. Our policy was decided

only after most careful consideration of the Report of the

Ranger Uranium Environmental Inquiry. It is a policy based on

the totality of the national interest and our obligations as a

responsible member of the international community.

Our policy clearly recognises the important role

Australia must play in moves against the proliferation of nuclear

weapons and the strengthening of nuclear safeguards. Australia

.../2

2 .

has announced a stringent policy of nuclear safeguards to

govern future export contracts and we are proceeding to

implement that policy through the negotiation of comprehensive

bi-lateral safeguards agreements with other countries. We

are also taking an active role in all of the major

international forums where nuclear non-proliferation and

safeguards are discussed. Mr. Justice Fox is continuing to

serve our country in this important area as Australia's

Ambassador-at-Large on nuclear non-proliferation and safeguards.

Australia's policy is based squarely on our recognition

of Australia's obligations as a country well endowed with

energy resources to make those resources available to other

countries - many of whom have no real alternative, in the wake

of the world energy crisis, to turn to nuclear energy as a means

of supplying electricity to their peoples.

The Ranger Inquiry laid particular stress on the

orderly development of our vast uranium resources. The

development of those resources, wr hile serving the objectives

just mentioned must also be regulated and controlled so as

to ensure full protection of the environment,. the welfare of

the Aboriginal people and yield the economic benefits to

Australia and its people that were described in the Report of

the Ranger Uranium Environmental Inquiry. .

An important step in the implementation of our policy

was the introduction of legislation into the Parliament on

10 April 1977. That legislation puts into place much of the

.../3

3 .

basic framework which will govern the process of development.

In this Statement I will describe the decisions

the Government has taken in relation to the regulation and

control of exports. Central to this aspect of our policy is

the recommendation of the Ranger Inquiry that a Uranium

Marketing Authority be established.

In my Statement of 25 August 1977 I stated that the

Government accepted the thrust of the recommendation of the

Ranger Inquiry and that we would establish a Uranium Marketing

Authority or similar marketing arrangements to achieve the

objective of orderly development. However,  I explained that

we would not take a final decision on that matter until the

legal implications of foreign anti-trust laws have been

fully examined. But I made clear that in the arrangements we

made we would ensure that the Government had at all times

proper knowledge, oversight and control over the arrangements

under which Australian uranium is exported. That control would

always ensure that the Government would be in a position to

move immediately to terminate uranium development, permanently,

indefinitely or for a specified period as recommended by the

Ranger Inquiry,,

Against the above background the Government has

considered carefully its attitude in regard to the machinery which

should govern future exports of Australian uranium and I shall now

explain to the House the decisions we have taken at this stage.

\ :  ...A

4 .

The export of uranium is presently controlled under

the Customs (Prohibited Exports) Regulations of the Customs

Act 1901.

Uranium exports are prohibited unless a certificate

in writing under the hand of the Minister for Trade and

Resources, or an officer duly authorised by him, is produced

to the Collector of Customs. This will continue.

Apart from Mary Kathleen, at present formal

development approval has been granted only to the Ranger

project. Should mines other than Mary Kathleen and Ranger

subsequently receive Government development approval and as

the flow of exports increases it may be desirable to provide

for specific legislation to govern exports which would replace

the existing Customs Regulations. But the Government sees no

need in this Sitting of Parliament to introduce legislation for

that purpose nor would we wish to do so prior to consultation

with the States on the scope and content of any future

legislation.

The procedures I intend to adopt flow directly from

the Government’s determination that exports of Australian

uranium will only be permitted in the national interest. In

considering exports we will have regard to the principles I

have already stated, some of which I now repeat briefly, namely,

- the orderly development of Australia's uranium

resources

.../5

5 .

- making supplies of uranium available to other

countries for use in the generation of electricity

and for other peaceful purposes

- ensuring adherence to the policies of Australia

in relation to the non-proliferation of nuclear

weapons and the application of safeguards against

the use of uranium other than for peaceful purposes.

'  In the exercise of his powers under the Customs

(Prohibited Exports) Regulations the Minister for Trade and

Resources has wide discretion. For the reasons already

mentioned it is both necessary and desirable that he should

continue to have such a discretion. But it is also desirable

that uranium producers should be informed of the way in which

that discretion will normally be exercised. I shall accordingly

now indicate the procedures that will need to be followed.

-  The Minister’s approval for the export of uranium from

a particular project will be given only after full consideration

by the Government following the completion of environmental

procedures and compliance with the Government's foreign

investment policy. I can say now, however, that Mary Kathleen

Uranium Limited, and the Australian Atomic Energy Commission,

will be permitted to export uranium, the latter from the Ranger

deposit. The mining and marketing of uranium from the Ranger

deposit were the subject of arrangements which the Whitlam

Government entered into with Peko Mines Limited and the

... /6

- Â·  i

6 .

Electrolytic Zinc Company of Australasia Limited. Our

Government has previously stated on 25 August 1977, when

approval for Ranger was announced, that the arrangements

between the Whitlam Government and Peko/EZ would be honoured.

Having regard to the various considerations of

national interest I have previously mentioned and the

diversity of our deposits it will be necessary for the

Minister to exercise some control over the quantities of

uranium being exported at any one time. It will also be

necessary that the Minister determine in advance that the

contracts which the uranium producers propose to enter into

for the sale of their uranium to overseas buyers contain

appropriate terms and conditions consistent with Australian

Government nuclear safeguards policy. The Minister will also

determine terms and conditions relating to the duration of

the contract, the quantity of the uranium to be sold under

the contract, the method of shipment of the uranium,  the

price payable for the uranium, the manner (including the

currency) of payment and the use to which the uranium is to

be put by the purchaser.

;It will be necessary that the Minister's requirements

on the terms and conditions to be included in a particular

contract be indicated to the producer before the contract is

entered into. Uranium producers will accordingly need to seek

the approval of the Minister before making any firm offers or

entering into any legal commitments.

.../7

7 .

When a contract has been entered into in accordance

withÂ·the requirements that the Minister has notified

beforehand, the producers will be required to lodge a copy

of the contract with the Minister, whereupon it will be

formally approved and form the basis for subsequent export

approvals covering the uranium to be exported in fulfilment

of the contract. I should mention, however,  that contracts

approved prior to 2 December 1972 will not need further

approval.

Shipments of uranium will continue to be controlled,

as is the case at present,  on the basis of individual

consignment. I will not issue a certificate under the Customs

(Prohibited Exports) Regulations in respect of any consignment unless

all aspects of Government policy are satisfied, including

- that the uranium is being exported from a project

which has the status of Government development

approval

- that the export is for the purpose of performing

an approved contract, and

- that Australian safeguards policy is fully complied

with. Ã¢ÂÂ

I have referred to the Government’s previously stated

view that a Uranium Marketing Authority or similar arrangements

should be established. In view of the complexity of the matters

.. ./8

8 .

that must be brought to account in considering new contracts,

it is clear there would be advantages in the establishment of

an Authority. This body would be appropriately named the

Australian Uranium Export Authority. As our industry

develops and mines other than Ranger proceed to the development

stage there will be a need for the Minister for Trade and

Resources to have available advice from such an advisory

Authority on the range of matters that I have just outlined.

At the present stage of our development and until there has been

adequate opportunity for consultations with the States the

Department of Trade and Resources will be able to perform these

functions. I do not therefore see a need to proceed with

legislation in the current Sittings, arid prior to consultations

with the States on the nature and desirability of legislation.

I envisage that at the appropriate time in our

progress with uranium development a Uranium Export Authority

should be established to be charged with the duty of advising

the Minister for Trade and Resources on the matters I have

just outlined in relation to exports under new contracts. Such

an Authority would also carry out a number of important

ancillary functions namely: ,

- to assemble and to correlate information relating '

to the known reserves of uranium in Australia and

in other countries

- to obtain and analyse information on the supply of

and demand for uranium in Australia and other countries

.../9

9 .

- to analyse trends in the international uranium

market

- to obtain information on the commercial arrangements

for the upgrading and enrichment of Australian uranium

within and outside Australia.

The Authority would draw upon information from

available Government and other sources for these purposes. The

Authority would also liaise with, and provide information to,

the Uranium Advisory Council.

I might add that in view of the nature of the advice

that the Authority would need to provide, it would not be

appropriate for its members to be chosen from the companies

which were participating in the marketing of uranium.

Action taken in accordance with the procedures I

have outlined in,this Statement should not give rise to any

questions under the anti-trust laws of other countries. In

that connection I would add that while the Government does not

wish to be taken as accepting that it is appropriate for other

countries to apply their anti-trust laws extraterritorily without

due regard to matters affecting our national interest, we urge

our producers not to resort to arrangements which would

jeopardise them under those laws. Anti-trust enforcement action

that has in recent years been taken in other countries, notably

the United States, has made it clear that Australian producers

. . ./10

10 .

could jeopardise their positions under the anti-trust laws

of other countries by resorting to restrictive trade

practices in their marketing operations with overseas buyers.

Mr. Speaker, the machinery and the procedures I

have just outlined will ensure that the Government maintains

strong regulation and control over uranium exports in the

national interest in a manner consistent with the Government's

policy of uranium development announced on 25 August 1977

following receipt of the Report of the Ranger Uranium

Environmental Inquiry. It provides a proper basis on which

Australia may proceed to the stage of new export contracts and

clarifies to the existing approved and prospective projects

the procedures and machinery which the Government will apply

in dealing with export arrangements.

