Proposed removal of the ban on uranium exploration in New South Wales

The regulatory regimes governing uranium exploration and mining differ across the states and territories of Australia. While exploration for uranium is permitted in the Northern Territory, South Australia, Tasmania and Western Australia, in Queensland only exploration is permitted, and in New South Wales and Victoria exploration for and mining of uranium is prohibited. On 16 February 2012, the coalition Government of New South Wales introduced draft legislation into the New South Wales Legislative Assembly, being the Mining Legislation Amendment (Uranium Exploration) Bill (the Uranium Exploration Bill), to remove the ban on uranium exploration in New South Wales.

Background and legislation and regulations affected by the Uranium Exploration Bill

The introduction of the Uranium Exploration Bill follows a request made by the Commonwealth Government to the Governments of New South Wales and Victoria to review the prohibition on uranium exploration and mining under their respective laws.

Under the Uranium Exploration Bill, the prohibition on uranium exploration, which is found under the Uranium Mining and Nuclear Facilities (Prohibitions) Act 1986 (NSW)), will be removed and consequential amendments will also be made to the following three pieces of legislation:

• Mining Act 1992 (NSW);
• Radiation Control Act 1990 (NSW); and
• Aboriginal Land Rights Act 1983 (NSW).

The Uranium Exploration Bill also includes proposed consequential amendments to the Mining Regulation 2010 and State Environmental Planning Policy (Mining, Petroleum Production and Extractive Industries) 2007 (the Mining SEPP).

The Minister for Energy and Resources, Chris Hartcher, noted in his speech introducing the Uranium Exploration Bill to the Legislative Assembly that permitting exploration for uranium will enable New South Wales to determine the extent of any uranium resources within the state.

Key changes proposed under the Uranium Exploration Bill

The key proposed changes under the Uranium Exploration Bill are as follows:

• all uranium in New South Wales will vest in the Crown and no compensation will be payable for that vesting;
• exploration licences and associated permits granted under the Mining Act 1992 (NSW) will be permitted for exploration for uranium;
• uranium will relevantly be a mineral for the purposes of the Mining Regulation 2010 (NSW);
• no authorisation, other than an exploration licence or an environmental assessment permit relating to an exploration licence in respect of uranium, will be permitted under the Mining Act 1992 (NSW); and
• the Mining SEPP will be amended to cover uranium so that development for the purposes of exploration for uranium will not require development consent under Environmental Planning and Assessment Act 1979 (NSW) (EPA Act) but will be subject to the environmental assessment processes under Part 5 of the EPA Act.

Conclusion

It should be kept in mind that under the Uranium Exploration Bill:

• the grant of any authorisation other than an exploration licence for uranium or environmental assessment permit relating to an exploration licence for uranium will be restricted; and
• there are no provisions which provide for the conversion of an exploration licence for uranium into any kind of assessment lease, mining lease or other similar title.

Consequently, while the Uranium Exploration Bill, if ultimately passed, may stimulate uranium exploration activities in New South Wales, as the proposed regulatory framework stands, there is a significant degree of uncertainty as to the extent to which a holder of an exploration licence for uranium would ever be able to progress to mining operations in the future.

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