Australian Uranium Mining

Ky Robinson
March 29, 2024

Submitted as coursework for PH241, Stanford University, Winter 2024

Introduction

Fig. 1: Map of Australia with Overlay of Uranium Mines. [7] The Four-Mile Mine is adjacent to the Beverley Mine, which no longer being worked. (Image Source: K. Robinson. Template from Wikimedia Commons.)

Despite the Australian Radiation Protection and Nuclear Safety Act of 1998 and the Environment Protection and Biodiversity Conservation Act 1999 both prohibiting the use of nuclear power in Australia, the country remains actively involved in the global uranium market. The vastness of Australia plays a pivotal role in facilitating a large supply of resources, including uranium, with the country ranked as the second-largest producer of uranium in 2020, trailing only Kazakhstan. [1] Thus, even with their nuclear energy abstention, Australia is able to play a key role in the international uranium trade, supplying the global demand for this nuclear fuel source.

Operating Mines

Whilst Australia has the largest abundance of resources, it typically produces its uranium from a small number of mines. [1] This can be attributed to regulatory constraints, market dynamics and cultural concerns. As of 2020, Australia has five approved uranium mines, with only two currently operation and producing uranium: the Four Mile mine and Olympic Dam mine (see Fig. 1).

Located in South Australia, the Four Mile mine uses the process of in situ recovery (ISR) to extract uranium from sandstone deposits, meaning that a liquid solution is injected into the ore underground, leaching uranium from the rock to then be pumped to the surface and processed. [2] This process is considered to be simpler, cost effective and an environmentally acceptable method of uranium mining, particularly for low grade deposits. Olympic Dam mine, on the other hand, obtains its uranium as a by-product found when mining for the polymetallic Fe-oxide breccia complex. [1] This mine is the world's largest single uranium resource with more than 2 million tonnes of uranium oxide. Moreover, given it contributes around two-thirds of Australia's uranium production, it is no surprise that almost 80% of Australia's national total endowment is related to this mining site.

Cultural Considerations: Ranger Mine

Ranger Mine was alongside Four Mile and Olympic Dam mines that contributed to 6195 tU of uranium in 2020. [3] However, after operating for four decades, Energy Resources of Australia (ERA) ceased processing activities following the Australian government's intervention. This action was prompted by ERA's failure to secure consent from the Mirarr people, the native title holders, to proceed with mining operations. [4] The Mirarr people have long been opposed to the mining of uranium on their traditional land for many cultural reasons. As such, ERA must now complete all decommissioning and rehabilitation works on the mine and the land surrounding it by 2026 before it is suitable for permanent closure. With this mine contributing to about one-fifth of Australia's uranium production, it significantly impacts the country's overall uranium output.

Quality and Quantity of Resources

Determining the quantity and quality of uranium involves several key factors such as ore grade and the cost of uranium per kilogram of reasonably assured recoverable resources. When considering ore grade, there is a clear standard set by Canada. Measured in parts per million (ppm), Canada leads the way with very high-grade ore, ranging up to 20% or 20000 ppm. [5] On the other hand, Australia was to have an ore grade of 580 ppm for Olympic Dam and around 0.29% U or 2900 ppm for in situ mines such as Four Mile. [6,1] This difference in quality shows the significant variation in uranium ore grades between Canada and Australia. When uranium concentrations in rock or sands are notably low, typically below 1000 ppm, the material must exist in a form conducive to easy separation for it to be categorized as ore, thus implying that the uranium can be recovered economically. The 2022 IAEA Uranium report looks into this aspect and breaks the cost of uranium per kilogram of reasonably assured recoverable resources into four categories: < USD 40/kg U, < USD 80/kg U, < USD 130/kg U < USD 260/kg U. [1] After reporting increases in reasonable assured recoverable resources due to updated resource estimates at Olympic Dam, Australia continues to dominate the world's uranium resources with 28% of the total identified resources at < USD 130/kgU and 25% of identified resources in the highest cost category, < USD 260/kg U. [1] Australia does not report any resources in the lower cost categories. Although not specified, this could be due to a multitude of reasons, such as economic considerations that may come from the mining process, which could make it unprofitable to mine.

Conclusion

In conclusion, Australian uranium mining presents a complex scenario where legal restrictions, operational challenges, and cultural considerations intersect. Despite Australia's strict legislation prohibiting nuclear power, the nation actively participates in the global uranium market, ranking as the fourth-largest producer globally. The operational landscape is characterized by a concentration of production in a few mines, notably the Four Mile and Olympic Dam mines. However, the cultural implications, exemplified by the closure of Ranger Mine due to opposition from the Mirarr people, highlight the delicate balance between economic interests and Indigenous rights. Assessing the quality and quantity of Australian uranium resources reveals disparities compared to global standards, particularly concerning ore grades and economic recoverability. Canada sets a standard with very high-grade ore, while Australia's ore grades, particularly at Olympic Dam and Four Mile, are lower. The economic viability of uranium extraction is crucial, reflected in the cost per kilogram of reasonably assured recoverable resources. Australia dominates global uranium resources, especially in higher-cost categories, showcasing its prominence in the uranium market. Ultimately, the future of Australia's uranium mining industry hinges not only on market dynamics and resource availability but also on its ability to address environmental concerns, respect indigenous rights, and foster sustainable development practices. As the world continues its pursuit of clean energy solutions, Australia's role in supplying uranium remains both pivotal and complex.

© Ky Robinson. The author warrants that the work is the author's own and that Stanford University provided no input other than typesetting and referencing guidelines. The author grants permission to copy, distribute and display this work in unaltered form, with attribution to the author, for noncommercial purposes only. All other rights, including commercial rights, are reserved to the author.

References

[1] "Uranium 2022: Resources, Production and Demand," Nuclear Energy Agency, No. 7634, 2023.

[2] M. M. Hedges, "Uranium Exploration and Production: A Review of Innovation," Appl. Earth Sci. 117, 51 (2008).

[3] "Resources and Energy Quarterly," Office of Industry, Science, Energy and Resources, Government of Australia, December 2021.

[4] B. Reed, "Kakadu Uranium Site Clean-Up in Limbo Amid Calls to Revive Mine," The Guardian, 1 Oct 21.

[5] M. Mitchell, "A Prospector's Guide to Uranium Deposits in Newfoundland and Labrator," Geological Survey of Newfoundland and Labrador, September 2007.

[6] D. Esdale et al., "The Olympic Dam Copper-Uranium-Gold-Silver-Rare Earth Element Deposit, South Australia: A Geophysical Case History," ASEG Extended Abstracts 3, 147 (2003).

[7] I.Lambert and A. McKay, "The Strategic Importance of Australia's Uranium Resources," Geoscience Australia, May 2005.