State go-ahead for Cameco uranium project

The state government has approved Canadian miner Cameco’s proposed Yeelirrie uranium mine in the Goldfields, despite it failing to meet one of the environmental watchdog’s strict recommendations.

A ministerial statement uploaded to the Environmental Protection Authority’s website this afternoon revealed the Yeelirrie mine, located about 70 kilometres south-west of Wiluna, had been approved for development, and detailed the conditions.

The government's decision was based on two main factors, including the potential economic and social benefits of the project, such as jobs and export earnings.

The government has also mandated that Cameco conduct further field surveys and research to ascertain whether subterranean fauna found at the project site, and considered by the EPA to be at risk, exists in other areas.

“Further surveys may identify that the species currently only found within the project area are more widespread," Environment Minister Albert Jacob said in a statement.

"I have therefore mandated as part of this approval further survey work and investment in research.”

Mr Jacob said he had also taken on board input from public appeals against the project and advice from the departments of water and parks and wildlife, and would tighten conditions on flora and vegetation, offsets, and the public availability of management plans.

“The Liberal National government is committed to ensuring this and the other three uranium mines approved for construction and operation in Western Australia are subject to best practice environmental and safety standards,” he said.

While state government approval is a big milestone, a bigger challenge facing Yeelirrie and other proposed uranium projects is the depressed uranium price, which makes any substantial new project in Australia commercally unviable.

Cameco Australia managing director Brian Reilly welcomed the decision, saying in a statement it struck the the right balance between strong environmental management and positive economic benefits.

“Cameco is committed to minimising environmental impacts from its operations while at the same time maximising benefits for nearby communities and the state. Today’s approval by Minister Jacob recognises this commitment.”

Mr Reilly commented that further sampling, investigation and research of subterranean fauna meant it could be appropriately managed at Yeelirrie.

“The work at Yeelirrie will also contribute to a better scientific understanding of subterranean fauna more broadly across Western Australia.”

Cameco said it was taking prudent steps to prepare the Yeelirrie project for improved market conditions.

“We are advancing Yeelirrie through the environmental assessment process so that we are ready to respond when the market signals a need for more uranium,” Mr Reilly said.

“Minister Jacob’s approval is a significant step forward for the project”.

The Yeelirrie proposal was assessed by the EPA last year, with the watchdog recommending rejection of the mine in August after it failed to meet one of nine strict conditions.

The condition in question related to subterranean fauna, more specifically stygofauna, which has 73 species recorded in the area where the Yeelirrie mine has been proposed – more than anywhere else in the northern Goldfields, according to the EPA.

The other eight factors met the EPA’s objectives.

Cameco appealed against the EPA advice but that was rejected in December.

A ruling published by the EPA's independent appeals convenor said: "The EPA’s report concluded that there remained too great a chance of a loss of 12 species that may be restricted to the impact area and therefore concluded that the proposal could not meet its objectives for this factor.

“The new and additional information provided by the proponent suggested the level of impact to some stygofauna species may be reduced or avoided from what was considered in the EPA’s report, but is not considered sufficient to meet the EPA’s objectives for subterranean fauna.

“As such, it appears the basis for the EPA’s conclusions in respect to subterranean fauna remains valid.

"It follows that the minister determined to dismiss the proponent’s appeal in respect to subterranean fauna.”

The Yeelirrie proposal includes construction of mine infrastructure such as ore processing facilities, water abstraction and reinjection infrastructure, roads, accommodation, offices and workshop buildings, stockpile and laydown areas, and an evaporation pond.

Cameco hopes to mine up to 7,500 tonnes of uranium oxide concentrate per year from two open pits, with the ore to be transported by road for export through the Port of Adelaide.

Today's decision follows state government approval in recent weeks for two other uranium projects - Toro Energy's expanded Wiluna uranium project and Vimy Resources’ proposed Mulga Rock project.

Both Toro and Vimy’s proposals were recommended for approval by the EPA.

Cameco’s Kintyre project already has governmment approval.

In a statement issued this afternoon, Premier Colin Barnett said Western Australia had very significant uranium reserves and the Yeelirrie deposit was particularly large by world standards.

“Australia has been producing and exporting uranium for peaceful purposes for more than 30 years and it is high time that WA, with our significant reserves, became part of that industry,” he said.

“Australia’s international treaties guarantee that uranium can only be used for peaceful purposes. We should also remember that nuclear medicine is an important part of our healthcare system.”