Toro uranium mine gets federal govt nod

Toro Energy has been granted long-awaited federal government approval for its flagship Wiluna uranium mine, the first of its kind in Western Australia.

Environment minister Tony Burke announced today that he would back Toro's $269 million project, subject to 36 strict conditions, after a "rigorous environmental assessment".

The conditions relate to risks to groundwater and surface water, and from radiation.

They include precautions to ensure once the mine is closed, the site will be made safe for humans and animals and will be non-polluting.

The approval comes six months after the project was given the go-ahead by the state government. A decision had been expected in December but was pushed back for several months at the request of the minister. 

Toro managing director Vanessa Guthrie said the approval "provides a clear pathway to complete detailed engineering design, infrastructure and cost estimates for Wiluna."

"Wiluna is one of the few projects in the world capable of bringing new uranium production to the market in the medium term, when a shortfall is predicted from 2015 onwards," Dr Guthrie said. 

“The rigorous government assessment of the mine proposal at both state and federal levels has demonstrated that all impacts can be safely and sustainably managed."

Newly-appointed federal resources minister Gary Gray said he saw the Wiluna project as "a step forward for the Western Australian resources industry" and that he gave it his full support.

“Western Australia is rich in natural resources, and the Wiluna project will give the state the opportunity to mine and export uranium for the first time," Mr Gray said in a statement.

"Australia's uranium industry plays an important part in the global electricity market, and Western Australia has seen a significant resurgence in industry development following the WA Government’s decision to lift the WA ban on uranium mining in 2008.

"The proposed mine will be the most advanced of the new generation of uranium mines in the world and will provide a variety of social and economic benefits both to local communities and Australia more broadly."

Australian Conservation Foundation spokesperson Dave Sweeney meanwhile expressed doubt as to the viability of the project, warning that "conditional approval for a behind schedule and above cost uranium project is a long way from a working mine".

“In the past twelve months BHP Billiton has exited the WA uranium sector while Cameco has shelved projects in the Pilbara and Goldfields citing ‘challenging economics’ and market uncertainty post Fukushima,” Mr Sweeney said.

“We have deep concerns about Toro’s ability to finance the project and maintain the highest environmental standards. Toro is a small company but it poses a big risk and faces big challenges”. 

Toro is now required to provide Mr Burke with a detailed environmental management plan before substantial works can begin.

First production from the mine is anticipated for the end of 2015.

Shares in Toro surged by more than 17 per cent on the back of the news to sit at 13.5 cents on the ASX at 12:30PM WST.