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North Ltd Corporate Profile

Ranger Uranium - North's Assault on Kakadu

Energy Resources of Australia (ERA) own and operate the Ranger uranium mine in the Northern Territory. The mine is around 230 kilometres east of Darwin and is surrounded by Kakadu National Park. From its very beginning the operation at Ranger has been a controversial one. The Ranger ore body was discovered in 1969 by a joint venture established by Peko Wallsend Operations Ltd (Peko) and The Electrolytic Zinc Company of Australia Ltd (EZ). In 1974 this joint venture was broadened with the inclusion of the Australian Atomic Energy Commission (AAEC).4

Following this came the Ranger Uranium Environmental Inquiry, the longest such debate or inquiry on the issue of uranium mining to date.5 This Inquiry, often referred to as the Fox Report, ultimately gave a lukewarm and conditional approval to the mine. In 1980 the AAEC interest was bought out, and Peko and EZ became the principal shareholders in the operation. In 1987-88 EZ's interests in Energy Resources of Australia was taken over by North Broken Hill Holdings Ltd and that company merged with Peko. As a result of such manoeuvres ERA is now a 68% subsidiary of North Ltd.6

The mine commenced production in 1980 with the mining of the number 1 pit. This deposit was mined out in December 1994. ERA have begun developmental work on the nearby ore body number 3 and intend to bring it into full operation in 1997.

The region in which Ranger is located is a monsoonal one which sees a major change in climatic conditions between the Wet (December to April) and the Dry seasons. The issue of water management has been, and continues to be, a major problem for ERA. Seasonal variations in rainfall and evaporation often complicate the models used to predict cases where excessive amounts of water are kept on the mine site. In these cases ERA has attempted to gain approval to allow for the direct release of water contaminated with uranium, acids and heavy metals into the creeks and the Wetlands of Kakadu National Park. To date these attempts have been successfully opposed by both local traditional owners and anti-nuclear activists. However the fact that ERA is prepared to treat World Heritage listed wetlands as an industrial sewer is illustrative of the company's environmental concerns.

One other aspect of Ranger's operations that is made more complicated and problematic because of the nature of the local environment is that of tailings management. Tailings is the name given to the fine sand left over after an ore milling process. There is usually around twice as much liquid waste produced in the milling process as tailings. Uranium tailings contain about 85% of the total radioactivity in the ore, including nearly all of the radium.7

When mining began at Ranger the recommendation of the Ranger Inquiry was that the tailings be covered by two metres of water to help reduce the release of radioactive radon gas and to prevent the dry season winds from blowing radioactive dust across the surrounding area.8 This requirement proved too difficult for ERA to meet and it was subsequently altered to a requirement to keep the tailings damp. There is regular and significant seepage from the tailings dam at Ranger and its operation has been characterised by a failure to isolate dangerous and long lived radioactive materials from a most sensitive environment. The management of tailings at Ranger appears to represent an experiment in such a climate and the concern is that the World Heritage values and the food gathering resource of the adjacent Kakadu wetlands will be severely compromised if the tailings dam and the tailings management system proves inadequate.

The Ranger mine has had an adverse environmental impact in ways other than those concerning water management. One of the recommendations of the Fox Report was for the federal government to monitor and control uranium mining activities at Ranger and anywhere else within the Alligator Rivers Region. In order to do this the Office of the Supervising Scientist (OSS) was established. From its inception the OSS's ability to achieve its stated purpose was limited by its lack of regulatory and interventionist powers.

Recent years have seen the on-ground monitoring of the Ranger operation move away from the office of the OSS and instead become the concern of the Northern Territory Department of Mines and Energy (NT DME) and ERA themselves. This significant weakening in the role and mandate of the OSS is of particular concern in the context of the effects of Ranger's operations on the surrounding environment.

This was formally acknowledged by former federal environment minister Senator Richardson, who was hardly known as having an anti-nuclear perspective. These actions by the Ranger mine, which have been far too readily accepted by the NT authorities, suggest that the Commonwealths advice on environmental protection for the Ranger mine is not being given sufficient weight. The Supervising Scientist has advised that if this process continues the high standards of environmental protection in the Alligator Rivers Region will be threatened.9

The sad truth of the Ranger mine is that this process of rubber stamping ERA's actions has continued and the integrity of the Kakadu environment is at risk. Officers within the supervising authorities have privately acknowledged this state of affairs.

A memo written by the OSS states:

Rather than achieve better environmental control as they gain more experience, Ranger are moving the operation into a more hazardous situation...it merely results in higher environmental risks at low financial outlay to the mining company.10

The reality of Ranger environmental assault on Kakadu can be seen by reference to the incidents reported in the Supervising Scientist Annual Reports (1985-1994). These are only some of the environmental breaches reported - the real impacts of the mine may not be known for years:

  • 24 Sept. 85: Due to a tailings line failure, 25 cubic metres of radio-active contaminated water is sprayed over a 2,000 m2 area outside the Restricted Release Zone (RRZ);
  • 1986: Since commencement of production in 1981, twenty-four occurrences caused regulatory concern, sixteen of which related to failings in the tailings pipeline or tailings dam seepage collector lines;
  • March 87: About 500 m3 of water inadvertently released via pipeline into the Magela Creek when the flow rate was below the minimum approved level;
  • Nov. 88: 500,000 tonnes of low grade ore was incorrectly placed on the "safe" waste rock dump, possibly for as long as six months, before a fault in detection equipment was noticed;
  • Jan. 89: contaminated water from RP4 released into Kakadu National park, while 20,000 m3 of contaminated water is released into Djalkmara Billabong, draining into the Magela Creek system. The OSS admits that water release at Ranger is "out of control";
  • 1989-90: OSS finds that the toxicity of water released from Retention Pond 2 (RP2) into the Magela Creek "can have significant toxic effects";
  • 24 Aug. 91: Approximately 1300 m3 of water from RP2 sprayed over Ranger perimeter road to suppress dust;
  • 26 Feb. 92: during heavy rains water from the high grade ore stockpile containing significant concentrations of uranium escapes from its containment sump and flows into Magela Creek, via Georgetown creek. Increased concentrations of uranium are detected in both creeks;
  • 25 Jan. 93: a blocked drain leads to release of water into the RRZ during heavy rains;
  • 13 April 94: 60 m3 of run-off water and seepage from a high grade ore stockpile is discharged outside the RRZ following a pipe joint failure. And so on ...

Indigenous concerns ignored

Ever since ERA began operations at Ranger it has been a source of difficulty and much heartache for many of the region's traditional owners.

The Ranger Agreement was first signed after passage of the Aboriginal Land Rights Act in 1976. At the time and subsequently many Aboriginal people involved in this process have spoken of the severe pressure and coercion they experienced. Many were told that a failure to approved the Ranger Agreement would result in the deferment of the Land Rights Act. The Fox Commission was highly critical of ERA during this period, stating that it had failed "notably in its evaluation of the total impact on the Aborigines of the region."5

Two decades later little has changed. Despite ERA's publicity that the Ranger mine operates "with the understanding and wishes of its Traditional Owners"11 the reality is somewhat different.

For example over the course of the 1995 Wet season, ERA applied for, and received, permission to directly dump over 500,000 cubic metres of contaminated waste mine water. This proposal would have resulted in significant amounts of uranium, heavy metals and acids entering into the wetlands and waterways of Kakadu National Park, traditional areas of great importance as food sources for local traditional owners. Traditional owners reacted angrily to ERA's proposal and took legal action to stop the release. Ultimately their protests, along with those of anti-nuclear activists, were successful. However, the entire issue highlighted the gulf between the values held by various stake-holders in the uranium debate.

Big Bill Neidji is a senior traditional man responsible for country that would have been affected by ERA's proposal. The following is an excerpt from a letter drafted by him along with other family members and sent to Prime Minister Paul Keating in March 1995:

Today in Kakadu National Park, a World Heritage Area, Big Bill is alarmed and deeply concerned. For ERA mine proposes to release contaminated waters that will flood his land.

His authority places little trust in the Government nor with science. He is extremely doubtful that they would practice a proper duty of care in relation to the management of the land that he lives on with his family. For they have not had to learn as he has. He knows of no scientist or government representative who is dependant upon land and its food source downstream. He knows of no scientists or government representative who would even want to live downstream of the proposed release site.

Yet, he is being asked to place his trust in a science that he knows very little about. A science that in all its cleverness can not talk to him in his mother or even his father's tongue. A science that relies on Aboriginal knowledge to show them how and why in relation to land management issues. A science that when attempted to explain itself in English is unintelligible to him and others around him. He says no.

He is also being asked to place his trust in government decision. He knows full well of our history and of people that have since passed on, and when governments have had dealings with fellow Aborigines. He says no.

He has seen the English language twisted and then turned from a no to yes. He says Allarda. Translated it means no. Big Bill Neidji, Senior Traditional Owner of Cannon Hill, Gagadju Country, a Bunitj Man is asking that you listen to him. To trust in him and his authority and the science that he knows.

He knows this, that the proposed release of contaminated water from retention pond number two, is not good for his land and this country and his people. He believes it will poison the water, fish, fruits and grasses and kill trees. He believes it will kill his country, perhaps even him. He speaks for his country, he speaks for his grandchildren and the families downstream. He asks for you to act responsibly for what you should value most of all. Land and its people.

Who in government will heed his words?

Big Bill's question remains unanswered.

ERA is the fourth largest uranium producer in the world and is committed to the continuation of the industry in the Top End.12 The company currently has an ore stockpile sufficient to meet its contractual obligations for an estimated five years and also supplies around one third of its long term contracts through the provision of uranium originating from Kazakhstan.

ERA has also invested heavily in the nearby Jabiluka deposit, the largest undeveloped uranium deposit known in Australia. Jabiluka was first discovered in the early 1970's and for the next two decades Pancontinental Mining Ltd (Pancon) attempted to develop the deposit into a working mine.13

Pancon were continually frustrated by the anti-uranium movement and the federal Labor Government's "three named mines policy". In 1991 Pancon sold the deposit to ERA for $125 million and have since quit any involvement in the uranium industry. Since that time ERA have renamed the deposit North Ranger which appears to be part of an attempt to have the deposit viewed as an extension of the existing Ranger mine.14

The push to mine Jabiluka has increased in recent times with ERA lobbying to obtain approval to develop. In the December quarter of 1995 North Ltd appointed Richard Knight to its board. Knight, a former chief executive of ERA, is now North's general manager of development.15 His recent appointment has been interpreted by industry watchers as a sign that expansion is to be one of North's prime corporate objectives. Phillip Shirvington, ERA's current chief executive, recently defined the company's hopes for Jabiluka in a media comment, "we would aim to develop North Ranger and have it operational by 1999".16 According to ABC Radio National's "Earthbeat" programme (22/3/96), the election of the Howard Liberal government has now removed the obstacle of the (albeit hypocritical) three mines policy of the ALP, and North is now going ahead with its plans to undertake underground mining operations at Jabiluka, and transport the ore twenty miles to Ranger for processing. Environmental groups have already expressed their grave concerns about further mining in Kakadu, the increased threat posed to waterbirds, and the possibility that yet more tailings will hamper the disposal of what already exists. While Environment Minister Robert Minister has promised the usual "stringent environmental controls", Resources Minister Warrick Parer has already hit out at opposition to increased uranium exports as environmental "extremism".

As ERA increases the pressure to develop Jabiluka, concern is growing among many traditional owners, anti-nuclear activists and environmentalists about the social and ecological effects of uranium mining in the Magela Creek flood plain. Although situated within the boundary of the Kakadu National Park, Jabiluka was excised from the park in March 1979 in a move which left the door open for mining. Critics of the proposal to mine Jabiluka are calling for the deposit to be reincorporated into Kakadu as the best way of preventing the region being turned into a sacrifice zone to facilitate ERAs corporate ambitions.17

Cape York Peninsula - Riding Roughshod over Aboriginal Concerns

The Aboriginal People of the Cape York Peninsula have been campaigning for the return of their lands and the protection of the high conservation value areas on the Peninsula for a number of years. It has been estimated that between five to eight million hectares of Cape York Peninsula are of potential World Heritage value. In 1991, after an extensive campaign involving traditional elders and conservation groups, the Starcke region was declared National Park and Aboriginal Freehold. In 1995 state Premier Wayne Goss indicated that he would support the creation of an East Coast Conservation Zone. The campaign received a major boost when the Cape York Regional Agreement was signed between traditional owners, pastoralists and conservation interests in February 1996. The agreement is a significant statement of community support for protection of Cape York Peninsula.18 With the change of state and federal governments, much of this progress now hangs in the balance.

Despite the developing consensus within the Cape York community, the mining industry continues to override Aboriginal concerns and compromise the region's conservation values. Two mining companies are currently active in the region: Mitsubishi at Cape Flattery and Comalco at Weipa. Three other areas are threatened by mining: Shelburne Bay; McIlwraith Range and Silver Plains.18

The Silver Plains region is situated to the north of Lakefield National Park and east of Coen. It is the traditional homelands of the Lamalama, Umpila, Ayapathu and Kaanju people, and includes the largest area of rainforest on the Peninsula.18 In March 1996 an agreement was reached on a proposed plan for the distribution of over 307,000 hectares of proposed national park (57%) and Aboriginal land (43%).19 Located within the region is a mining lease owned by North Ltd.

In 1990 Geopeko (now North Exploration Ltd) was granted a series of Authorities to Prospect (ATP) for mineral sands of the coast of the Silver Plains region. The ATP is on Umpila land, and the traditional owners were not in favour of exploration of the area.20

North drilled an exploratory line across a dune system (in addition to three already drilled) and went ahead with a flora study that it had previously agreed to postpone. In a further act of disrespect, North announced that it would not wait the three month period requested by the Umpila until their desired anthropologist was available to do survey work. On instructions from the Umpila, the Tharpuntoo Aboriginal Service retained a legal firm to fight North's actions. At this juncture then Federal Minister for Aboriginal Affairs, Robert Tickner, rejected any further activity until further surveys were completed. By early 1991 it appeared that North had discarded plans for any further testing in the area. It has not closed the books on the Silver Plains leases, however, and the region remains threatened by mining.20

Unfortunately, it is not unusual for mining companies to pressure for site clearance by committing themselves financially, prior to undertaking consultation. North justified the short timeframe for consultation by stating it could not "delay the million dollar program due to [the] shortness of the dry season". One Geopeko agent even went so far as to comment that the request for an Umpila-appointed anthropologist was an attempt by Aboriginals to get mineral rights over and above the rights of everyone else.20

The broader mining industry - in which North Ltd plays an important part - has already begun distancing itself from what it terms "World Heritage 'icons'". According to the Minerals Council of Australia the "Cape York land grab [is] not on...Cape York is a huge area that should be available to all Australians for development, commercial and recreational purposes".21



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