peak oil adjustment? – US proposes Uranium cartel

2006-06-21

Richard Moore

       The Bush administration is pushing a massive expansion of
       the nuclear power industry as the "best" solution to global
       warming. Last year, Bush won from the US Congress a host of
       "incentives" for the nuclear power industry, including tax
       breaks and insurance against regulatory and legal delays in
       constructing new plants. On May 22, the US Nuclear
       Regulatory Commission announced that 16 US corporations had
       expressed interest in building 25 nuclear reactors in the
       US.

       Bush has also proposed that Australia and Canada - the
       world's major uranium exporting countries - join with the US
       to form a marketing cartel, the Global Nuclear Energy
       Partnership (GNEP). They would enrich the uranium, then
       "rent" their nuclear fuel rods out to user countries and
       take back the waste.


Original source URL:
http://www.greenleft.org.au/back/2006/671/671p3.htm

Howard pushes for uranium enrichment

Doug Lorimer

On June 6, PM John Howard announced the appointment of former Telstra 
CEO Ziggy Switkowski, who is also a board member of the Australian 
Nuclear Science and Technology Organisation (ANSTO), to head a 
six-member task force to "review" Australia's uranium mining industry 
and the possibility of building nuclear power plants in Australia.

Australia's current involvement in the nuclear industry is limited to 
the mining and export of "yellowcake" (powderised uranium ore) and 
the operation of a small research reactor at Lucas Heights in 
southern Sydney. However, Australia has 40% of the world's known 
low-cost recoverable uranium reserves.

While promising that the task force would carry out an "objective, 
scientific and comprehensive" review, Howard argued that the 
establishment of nuclear power plants would be good for Australia's 
economy. "Energy prices and energy security are key considerations 
for future economic growth in a lower [carbon dioxide] emissions 
future", he said.

The review will begin this month, with a draft report planned for 
public consultation by November and the final report due by the end 
of the year.

The corporate media has focused on Howard's remarks since returning 
from Washington on May 19 about nuclear power being the solution to 
climate change caused by greenhouse gas emissions from coal-fired 
power stations. The government is most keen on massively expanding 
exports of Australian uranium, and adding value by turning the 
yellowcake into nuclear fuel rods. To do this, however, would require 
building a uranium enrichment plant.

"It doesn't seem to me to make a lot of sense to favour the export of 
uranium without looking at enrichment", Howard told ABC TV's June 3 
Insiders program. "There is significant potential for Australia to 
increase and add value to our uranium extraction and exports", he 
repeated on June 6. He also noted that recent developments in global 
energy markets have renewed international interest in nuclear power 
as a technology that "can help meet growing demand for electricity 
without the fuel and environmental costs associated with oil and gas".

Australian Greens energy and climate change spokesperson Senator 
Christine Milne said that everything about Howard's announcement 
"points to enrichment of uranium as the prime minister's real agenda 
... During his recent visit to the United States, Prime Minister 
Howard had talks in Washington with President [George] Bush about the 
president's desire to set up new nuclear fuel supply centres around 
the world with a view to having these supply centres enrich uranium 
and lease it with an agreement to take back the spent fuel rods."

The Bush administration is pushing a massive expansion of the nuclear 
power industry as the "best" solution to global warming. Last year, 
Bush won from the US Congress a host of "incentives" for the nuclear 
power industry, including tax breaks and insurance against regulatory 
and legal delays in constructing new plants. On May 22, the US 
Nuclear Regulatory Commission announced that 16 US corporations had 
expressed interest in building 25 nuclear reactors in the US.

Bush has also proposed that Australia and Canada - the world's major 
uranium exporting countries - join with the US to form a marketing 
cartel, the Global Nuclear Energy Partnership (GNEP). They would 
enrich the uranium, then "rent" their nuclear fuel rods out to user 
countries and take back the waste.

According to the June 6 Australian Financial Review, before and 
during his visit to Washington, Howard was briefed by US officials 
about the role they expect Australia to play in the GNEP. This would 
involve "mining and enriching uranium at Olympic Dam in South 
Australia, exporting it to India and China via the Adelaide-Darwin 
rail line and re-importing the waste the same way for storage at the 
former nuclear test site at Maralinga ... The GNEP could create 
immediate profits for any private firm building an enrichment plant 
at or near the Olympic Dam uranium mine."

The Olympic Dam mine, owned and operated by BHP Billiton, holds the 
world's largest known uranium ore deposit, with about 66% of 
Australia's proven reserves. Under the Bush plan, Maralinga would 
become the world's principal site for dumping used nuclear fuel rods.

 From Green Left Weekly, June 14, 2006.
Visit the Green Left Weekly home page.
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