MEDIA RELEASE i^J! r * ÃÂ y“

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URANIUMÂ· - INVOLVEMENT OF COMMONWEALTH GOVERNMENT

'  . . . .  .-.IN RANGER PROJECT

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(Statement by the Acting Prime Minister and Minister for Trade  and Resources, the Rt H on.  J.D. Anthony, M.P.)

The Government is prepared to examine proposals for  the acquisition of its interest in the Ranger uranium project.

Since the announcement in August 1977 of the  Government’s decision to proceed with the development of the  Ranger project on the basis of the Whitlam Government's  Memorandum of Understanding,  our Government has received

approaches from companies interested in acquiring the Commonwealth's  interest in the project. .

The Government considers it must examine closely these .   approaches.  .  .  . .  -  .

In announcing the Government's decision in. August 1977 , I said that "participation of the Commonwealth in a mining project  is, of course, contrary to thÃ¢ÂÂ¬'political philosophy of our  Government".

The involvement of the Commonwealth in the Ranger  project has assisted that project - and indeed the Australian  uranium industry - in overcoming its. initial difficulties  and has helped place it on a sound footing.

Any disposal of the Government's interest in the  project would in no way affect the obligations which the  Government undertook in the agreement of 3rd November, 1978  with the Northern Land Council pursuant to sub-section 44(2)  of the Aboriginal Land Rights (Northern Territory) Act 1976.

Although the Government is willing to consider .

approaches to acquire its interest in the Ranger project the  Government remains fully committed to the development of the  project. The Government' will of course continue to contribute  its share of the financing of the project until a decision is

reached as to whether or not to dispose of its interests.

I would also welcome hearing from established companies  in the uranium or associated industries, which have not already  approached me, as to whether they may be interested in acquiring  the Government's share of the project. Naturally the Government  would wish to see the highest beneficial Australian participation,   but approaches from overseas users would be carefully considered  within the guidelines on foreign participation in uranium  projects in Australia.

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.  The Commonwealth would only consider disposing of its

interest to companies equally dedicated to, and demonstrably  able to finance the appropriate share of, the complete  development of the Ranger project.

Development of that project is proceeding well and  many millions of dollars have already been spent and committed  to the project, with more than 500 people currently employed.   The Government's partners in the project, Peko and E Z , will

according to the agreement with them be in a favoured position  to acquire the Government's interest.  This derives from  Article 43 of the Agreement (see attached).  Peko and EZ have  already held preliminary discussions with me.

If the terms of acquisition proposed to the  Commonwealth are not attractive to i t , the Commonwealth will  of course remain in the Ranger project. .  .

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Canberra, 6th ,1979.

BACKGROUND

In October 1975 the Whitlam Government signed

a Memorandum of Understanding with Peko/EZ providing for

a joint venture between the Australian Atomic Energy

Commission and the companies for the development of the

Ranger uranium project. Following the receipt of the

two reports of the Ranger Uranium Environmental Inquiry,

the present Government announced that it would proceed

on the basis of that Memorandum of Understanding. The

legal agreements to give effect to that decision were

signed on 9 January 1979 by the Commonwealth Government,, - .y Ã¢ÂÂ   Ã¢ÂÂ   .  ,

Peko-Wallsend Operations Limited, Electrolytic Zinc.

Company of Australasia Limited and the AAEC.

Article 43 of the Ranger Uranium Project

Government Agreement sets out the procedures for disposal

of any party's interest in the project.. Paragraph (ii)

of sub-clause 43.5(b) provides, for example, that before

disposing of its interest the AAEC must give Peko and

EZ a first right of refusal. .

