When it comes to uranium, which is a vital element for nuclear power generation and to produce isotopes for medicine and beyond, Australia is at a crossroads.
Pre-approved projects in Australia continue to move forward while the country ponders its bigger-picture approach to uranium.
Because of its generous reserves, Australia has a long history of uranium discoveries and mining, dating back to the early 1900s. Uranium was first discovered at Radium Hill in 1906, with mining beginning in 1954 at Rum Jungle in Northern Territory.
In Western Australia, discoveries date to 1970. Around this time, the anti-nuclear movement slowed progress of the industry, leading to the so-called “three mine policy” that permitted just three existing mines to continue operation by 1984.
Only two of Australia’s eight states and territories permit uranium mining. In 1998, the federal government banned nuclear power — focusing instead on coal — which further impacted how the nation viewed uranium reserves.
Meanwhile, states such as Western Australia have been under pressure to overturn their local mining bans.
Despite the regulatory hurdles, there are several projects in development due to longstanding preapprovals. Other companies are keeping close tabs on local and national policies in hopes they could change.
Many existing development projects are in Western Australia, and were given approval before 2017.
The project, which is near the town of Wiluna, is a historic mining district with existing infrastructure. The approvals for the Wiluna project are planned to be amended for an enhanced project that is elevated in terms of feasibility (both technically and financially) and to extend the time for substantial commencement of production.
Recent developments in the resource sector — including the huge decline in iron ore prices and significant job losses — are putting the spotlight on the need for sound regulations that promote a robust Australian mining sector.
With its considerable uranium resource that remains largely untapped, there’s potential room for change in Australian regulations with regard to uranium, driven by market conditions and the pressure to achieve net-zero targets. In the meantime, however, previously approved uranium-mining projects in the state of Western Australia continue to move forward, doing so in a climate that’s increasingly attractive for investors.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
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