John Hallam reprinted with permission from
Poison Fire, Sacred Earth,
TESTIMONIES, LECTURES, CONCLUSIONS,
THE WORLD URANIUM HEARING, SALZBURG 1992
pages 173-174

What I'm trying to do is, to situate Australia in the context of the global uranium market. Uranium mining began in Australia back in the 1940's, very significantly for the United Kingdom Nuclear Weapons Program. Much of what was exploded on the Monte Bello Islands, at Maralinga, was, in fact, mined in Australia from 1954 at Rum Jungle and from 1956 at the Mary Kathleen Uranium Mine in Queensland. Mining actually started at Radium Hill, and 40 percent of the miners who worked at Radium Hill have subsequently died of lung cancer.
Australia has probably got the largest single slab of uranium reserves in the world, and this is the critical point that I want to make in this presentation. . . . So, Australia has somewhere between 480,000 tons of yellowcake and 1.3 million tons of yellowcake plus. Now, in comparison, South Africa, the next largest country in terms of reserves, has 317,000 tons, Niger -- I'm reading this in descending order of how much they have according to the official OECD estimates -- has 173,000 tons, Canada, although it is the largest producer, is only the fourth largest in terms of actual reserves with 139,000 tons, the U.S. which used to be the largest producer has 111,000 tons, Namibia between 90,000 and 100,000 tons, all at Roessing and France way down the list at between 46,000 and 50,000 tons.
. . . What I try to do is, simply give you an idea of what Australia has got and why the nuclear power industry sees Australia as important. Now, there are a lot of contradictions in the position that Australia has. On the one hand, it is seen as a potential uranium bonanza as it has the largest and amongst the richest deposits in the world. But on the other hand, Australia has been unable to penetrate the yellowcake market very much. . . . We have the same bizarre, nonsensical situation in Australia that exists in Canada where the companies want to expand production very considerably, even though their own market analysts tell them that there is a glut on the market, that the current spot prices for uranium are well below the cost of production, that the contract prices are moving down . . . Contract prices which make mines like Ranger and Roxby Downs viable are moving down and are approaching the cost of production.



John Hallam

John Hallam, Australia. Member of Friends of the Earth, author.

I'm going to start going into something a little bit different from what Gracelyn has said. In contrast to the very moving story which she has told, mine is mostly numbers. And for a variety of reasons I have not been provident enough to put the numbers down on this machine, so I suggest that you get out your notebooks. I will try to be brief and I will try to be really simple.

What I'm trying to do is, to situate Australia in the context of the global uranium market. Uranium mining began in Australia back in the 1940's, very significantly for the United Kingdom Nuclear Weapons Program. Much of what was exploded on the Monte Bello Islands, at Maralinga, was, in fact, mined in Australia from 1954 at Rum Jungle and from 1956 at the Mary Kathleen Uranium Mine in Queensland. Mining actually started at Radium Hill, and 40 percent of the miners who worked at Radium Hill have subsequently died of lung cancer.

Rum Jungle, the mine that started in 1954, has been an environmental disaster with the destruction of the tailings dam and major damage to the Finniss River. There has also been major environmental destruction at the Mull Mine(?) and the Elsherano(?) Mines in the Northern Territory which have been documented most recently by Australia's Office of the Supervising Scientist in the annual report that it puts out every year. By 1970, uranium mining had ceased in Australia with the scaling down of weapons testing after the test ban in 1963. However, it was very soon to revive with the reopening of the Mary Kathleen Mine.

Australia has probably got the largest single slab of uranium reserves in the world, and this is the critical point that I want to make in this presentation. The estimates of how much uranium we've got vary between 700 and 10,000 tons in a report done for Greenpeace a couple of years back, to 480,000 tons in a report produced by the OECD, in fact, the OECD 1990 Redbook. However, if you simply take the quantity of ore which is in the Roxby Downs, that is to say the Olympic Dam uranium deposit which is of concern to the Kokotha people since it's on their land, and you multiply the quantity of ore by the percentage of U-308 that the Environmental Impact Statement says is there, you come up with the astonishing figure of 1.3 million tons for the Roxby Downs deposit alone. So, Australia has somewhere between 480,000 tons of yellowcake and 1.3 million tons of yellowcake plus. Now, in comparison, South Africa, the next largest country in terms of reserves, has 317,000 tons, Niger -- I'm reading this in descending order of how much they have according to the official OECD estimates -- has 173,000 tons, Canada, although is the largest producer, is only the fourth largest in terms of actual reserves with 139,000 tons, the U.S. which used to be the largest producer has 111,000 tons, Namibia between 90,000 and 100,000 tons, all at Roessing and France way down the list at between 46,000 and 50,000 tons.

Now, of those quantities of ore, the Olympic Dam deposit alone has between 360,000 tons according to official estimates and 1.3 million tons if you arrive at your estimate by the method of multiplying out what the Environmental Impact Statement says is there. The next largest deposit in Australia is the Jabiluka deposit, which is not yet being mined, with between 175,000 and 200,000 tons, followed by Ranger and then the rest all considerably less. What I try to do is, simply give you an idea of what Australia has got and why the nuclear power industry sees Australia as important. Now, there are a lot of contradictions in the position that Australia has. On the one hand, it is seen as a potential uranium bonanza as it has the largest and amongst the richest deposits in the world. But on the other hand, Australia has been unable to penetrate the yellowcake market very much. And it is very clear that in a foreseeable future, certainly till well-passed the end of the century, there is not going to be room for Australia to make much of an expansion in its uranium production. This is interesting because there have been ambitious plans and there continue to be ambitious plans precisely to expand Australia's uranium production. We have the same bizarre, nonsensical situation in Australia that exists in Canada where the companies want to expand production very considerably, even though their own market analysts tell them that there is a glut on the market, that the current spot prices for uranium are well below the cost of production, that the contract prices are moving down and currently the costs of production start round 15 dollars a pound. Spot prices are between 7.50 dollars and 8.50 dollars per pound. Contract prices which make mines like Ranger and Roxby Downs viable are moving down and are approaching the cost of production.

Australia's production has actually declined over the last few years as indeed has the production of every other uranium producing country. Australia in 1982 was producing 4,400 tons of uranium, by 1989 at a decline of 3,800 tons, but currently, Ranger has actually suspended its mining operations. ERA (Energy Resources of Australia), the operators of Ranger, are buying on the spot market in the U.S. and onselling to the U.S. customers and indeed to other customers. Olympic Dam is only managing to get rid of 60 percent of its production which it manages to produce very, very cheaply as it is a by-product operation. So we are looking at this situation where the existing producers are facing grave difficulties where one of them has actually suspended production and is finding it cheaper and, indeed, is finding it profitable to buy for seven bucks fifty on-the-spot-market and then to sell it into its long-term contract between 20 to 25 dollars a pound where the other producer is only able to get rid of about 60 percent of its production and has to simply stockpile the rest. And yet, we still have a strong lobby upon the owners of Jabaluka from Nenison(?), who are incidentally in the process of going bankrupt and who are discussing selling their Kungara Project to Total Mining Company from France and get -- even though they are in that situation, they've been pressurizing the Australian government, they've been pressurizing the Aboriginal community very, very heavily to allow the Kungara Project to go ahead to pour the uranium into the already glutted market.

I think what I'll do is wrap it up at that point. I think I've made the primary point that I want to. There is a lot that could be said about uranium mining in Australia. Much has been said in this book, Uranium Mining in Australia. It's available outside. There is a considerable opposition to uranium mining in Australia. Part of that opposition is represented by a movement against uranium mining, they produce the magazine Third Opinion that is also available outside. I'll leave it at that.

Thank you very much for having me.



Father John (Moderator)

We are going ahead to hear something from Maralinga land. Please welcome!