Today I announce the establishment of a Prime Ministerial Taskforce to undertake an objective, scientific and comprehensive review into uranium mining, processing and the contribution of nuclear energy in Australia in the longer term.
Australia's energy sector has played a key role in our sustained economic growth. Australia's ability to reliably access competitively priced power and optimise the value of our energy resources has underpinned our economic prosperity while at the same time providing an effective response to our domestic and international environmental responsibilities.
Australia holds 40 per cent of the world's known low-cost recoverable uranium reserves. There is significant potential for Australia to increase and add value to our uranium extraction and exports.
Recent developments in global energy markets have renewed international interest in nuclear energy as a technology that can help meet growing demand for electricity without the fuel and environmental costs associated with oil and gas. This also comes at a time when energy prices and energy security are key considerations for future economic growth in a lower emissions future.
A growing number of environmentalists now recognise that nuclear energy has several other advantages over fossil fuel electricity generation, including significant lower levels of air pollution and greenhouse emissions.
Australia also has the capacity to significantly increase its contribution to nuclear science internationally with consequent economic, medical and environmental benefits.
It is against this background that the Australian Government has decided to establish a Taskforce to review uranium mining, processing and the contribution of nuclear energy in Australia in the long term. This review will contribute to a wide ranging public debate on Australia's future energy needs and the broad range of emerging energy technologies.
The terms of reference for the Prime Ministerial Taskforce are below.
The Taskforce will be chaired by Dr Ziggy Switkowski. Dr Switkowski, the former chief executive officer of Telstra Corporation, has demonstrated commercial and managerial experience and has relevant technical and scientific skills as a nuclear physicist.
In addition the Taskforce will include:
* Professor George Dracoulis: George Dracoulis is Professor and Head of the Department of Nuclear Physics at the Research School of Physical Sciences and Engineering at the Australian National University. Professor Dracoulis is an internationally renowned expert on nuclear physics and issues relating to nuclear reactors and their design; and
* Professor Warwick McKibbin: Warwick McKibbin is currently Professor of Economics at the Research School of Pacific and Asian Studies at the Australian National University and is a member of the Board of the Reserve Bank of Australia. Professor McKibbin is an internationally renowned economist with a deep understanding of the economics of energy and issues relating to climate change.
Three other members of the Taskforce will be named shortly.
The Chief Scientist, Dr Jim Peacock will support the review, including by facilitating a peer review of the scientific aspects of this review.
The work of the Taskforce will be supported by a whole-of-government secretariat based in the Department of Prime Minister and Cabinet.
I have asked the Taskforce to report by the end of this year.
6 June 2006
Review of Uranium Mining Processing and Nuclear Energy in Australia
Background
Recognising that:
* Australia holds 40 per cent of the world's known low cost, recoverable uranium reserves
* there has been renewed international interest in nuclear energy as a technology that can meet growing demand for electricity without the impact of the fuel cost fluctuations associated with oil and gas
* a growing number of environmentalists now recognise that nuclear energy has several other advantages over fossil fuel electricity generation, including significant lower levels of air pollution and greenhouse emissions
* there is significant potential for Australia to increase and add value to our uranium extraction and exports, and
* Australia has the capacity to significantly increase its contribution to nuclear science internationally
the Australian Government will establish a review of uranium mining, processing and the contribution of nuclear energy in Australia in the longer term. The review will contribute to a wide ranging public debate on Australia's future energy needs and the broad range of emerging energy technologies.
Terms of Reference
The nuclear energy review will consider the following matters:
1. Economic issues
(a) The capacity for Australia to increase uranium mining and exports in response to growing global demand.
(b) The potential for establishing other steps in the nuclear fuel cycle in Australia, such as fuel enrichment, fabrication and reprocessing, along with the costs and benefits associated with each step.
(c) The extent and circumstances in which nuclear energy could in the longer term be economically competitive in Australia with other existing electricity generation technologies, including any implications this would have for the national electricity market.
(d) The current state of nuclear energy research and development in Australia and the capacity for Australia to make a significantly greater contribution to international nuclear science.
2. Environment issues
(a) The extent to which nuclear energy will make a contribution to the reduction of global greenhouse gas emissions.
(b) The extent to which nuclear energy could contribute to the mix of emerging energy technologies in Australia.
3. Health, safety and proliferation issues
(a) The potential of 'next generation' nuclear energy technologies to meet safety, waste and proliferation concerns.
(b) The waste processing and storage issues associated with nuclear energy and current world's best practice.
(c) The security implications relating to nuclear energy.
(d) The health and safety implications relating to nuclear energy.
Timing of the Review
The Review will commence in June 2006 with a draft report to be available for public consultation by November 2006. A final report will be completed by the end of 2006.