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Nuclear News - Nuclear Monitor #870 - 19 December 2018

Nuclear Monitor Issue: 
#870
19/12/2018
Shorts

Taiwan's goal to become nuclear free remains unchanged: President Tsai

Taiwan's President Tsai Ing-wen said her administration's goal of making Taiwan a nuclear-free homeland remains unchanged, despite the November 24 referendum which saw 59% of voters calling on the government to abandon the 2025 deadline for the closure of all power reactors.1

President Tsai said the goal of phasing out nuclear power in Taiwan is part of the Basic Environment Act. "Therefore, that goal remains unchanged," she said.1

The ruling Democratic Progressive Party (DPP) legislated the 2025 nuclear-free deadline in 2016 but has now repealed the relevant passage in the Electricity Act.2

Ten referendum question were put to voters on November 24. All 10 proposals were supported by the opposition Kuomintang (KMT) party and opposed by the government. Voters supported all 10 propositions, and also dealt the DPP serious losses in local government elections on the same day. Other referendum propositions ‒ all of them successful ‒ included stipulating that thermal power plants should cut their output by at least 1% per year on average; that Taiwan not build any new coal-fired plants; and that restrictions should be maintained on the importation of foods from areas of Japan affected by the 2011 Fukushima disaster (supported by 77% of voters).3

Cabinet spokesperson Kolas Yotaka said the Executive Yuan respects the referendum result regarding the 2025 deadline and will work with relevant ministries to re-evaluate the country's energy policies.4 Minister of Economic Affairs Shen Jong-chin said the policy review will be complete in two months.5

The anti-nuclear group National Nuclear Abolition Action Platform said that not all those who voted in favor of stopping the nuclear phase-out are unconditional supporters of nuclear power, but rather some lack confidence in Taiwan's energy transformation.6

Nuclear power generated 9.3% of Taiwan's electricity in 2017.7 Two aging reactors were permanently shut down this year (Chinsan-1 reached its 40-year limit in October and Chinsan-2 was nearing its 40-year limit). The 40-year operating licenses for Taiwan's remaining four reactors will expire in 2021, 2023, 2024 and 2025. That fate of all six reactors will be contested in the coming period, as will the partially-completed Lungmen nuclear plant. Construction of the two Lungmen reactors was suspended in 2014 and 2015, with 55% public support for the suspension.8

1. Lu Hsin-hui and Evelyn Kao, 29 Nov 2018, 'Taiwan's goal to become nuclear free remains unchanged: President Tsai', http://focustaiwan.tw/news/aipl/201811290014.aspx

2. Cat Thomas, 26 Nov 2018, 'Govt Sidesteps Energy Referendums as Pro-Nuclear Group Mulls Further Action', https://international.thenewslens.com/feature/bluewave/108946

3. Jens Kastner, 7 Dec 2018, 'Taiwan's Voters Pull Plug on Energy Sources', www.asiasentinel.com/econ-business/taiwan-voters-pull-plug-energy-sources/

4. Ku Chuan and Ko Lin, 27 Nov 2018, 'Taiwan scraps nuclear-free deadline in wake of referendum', http://focustaiwan.tw/news/aipl/201811270027.aspx

5. 3 Dec 2018, 'Taipower withholds returning fuel rods pending new energy policy', http://focustaiwan.tw/news/aeco/201812030019.aspx

6. 25 Nov 2018, 'Anti-nuclear group undeterred by passing of pro-nuclear referendum', http://m.focustaiwan.tw/news/aipl/201811250029.aspx

7. https://pris.iaea.org/PRIS/CountryStatistics/CountryDetails.aspx?current=TW

8. www.world-nuclear.org/information-library/country-profiles/others/nuclea...

Langer Heinrich 'dodged' N$219 million tax

The Namibian reported on December 12:1

"The Namibian government lost N$219 million [US$15.4 million] in taxes from the sale of shares in one of the world's largest uranium mines, Langer Heinrich, because the country's tax avoidance law is not up to scratch.

"An investigation by The Namibian and UK-based journalism organisation Finance Uncovered revealed that the Australian multi-national mining corporation, Paladin Energy, pocketed N$665 million [US$46.7 million] after selling shares in the Langer Heinrich mine through a Mauritius-based offshore company.

"Paladin argues that using an offshore holding company means they are not liable to pay tax in Namibia. Tax on the proceeds of the sale would have amounted to N$219 million. 

"When presented with details of the joint investigation, the Namibian tax office said they were unaware of the Langer Heinrich deal, but in their view, taxes should have been paid on the proceeds. Tax bosses admitted that problems with legislation mean they are unable to enforce the law on offshore transactions like that of Langer Heinrich.

"Conducting transactions through Mauritius as a way to avoid paying taxes on the profits when assets are sold, is a well-known tax avoidance loophole used by many companies around the world. ... According to Tax Justice Network Africa executive director Alvin Mosioma, companies like Paladin have been involved in "aggressive tax planning schemes" that leave most countries unable to collect enough revenue, primarily through Mauritius which has countless tax treaties with most countries."

Similar accusations have been made about Paladin's Kayelekera uranium mine in Malawi (both Langer Heinrich and Kayelekera are in care-and-maintenance). United Nations' Special Rapporteur Olivier De Schutter noted in a 2013 report that "revenue losses from special incentives given to Australian mining company Paladin Energy, which manages the Kayelekera uranium mine, are estimated to amount to at least US$205 million (MWK 67 billion) and could be up to US$281 million (MWK 92 billion) over the 13-year lifespan of the mine."2

Paladin's environmental and social record has also been the source of ongoing controversy and the subject of numerous critical reports.3

And Paladin isn't the only Australian mining company embroiled in controversy in Africa. A 2015 report by the International Consortium of Independent Journalists found that that since 2004, more than 380 people have died in mining accidents or in off-site skirmishes connected to Australian mining companies in Africa.5 The report further stated: "Multiple Australian mining companies are accused of negligence, unfair dismissal, violence and environmental law-breaking across Africa, according to legal filings and community petitions gathered from South Africa, Botswana, Tanzania, Zambia, Madagascar, Malawi, Mali, Cote d'Ivoire, Senegal and Ghana."

1. George Turner, Lazarus Amukeshe and Shinovene Immanuel, 12 Dec 2018, 'Langer Heinrich dodged N$219 million tax', www.namibian.com.na/73926/read/Langer-Heinrich-dodged-N$219-million-tax

2. 22 July 2013, 'End of mission statement by the Special Rapporteur on the right to food', www.ohchr.org/EN/NewsEvents/Pages/DisplayNews.aspx?NewsID=13567&LangID=E

3. Nuclear Monitor #847, 21 July 2017, 'Paladin Energy's social and environmental record in Africa', www.wiseinternational.org/nuclear-monitor/847/paladin-energys-social-and...

4. www.icij.org/project/fatal-extraction

5. www.icij.org/investigations/fatal-extraction/key-findings-11/

Belgium: call to close Tihange-1 reactor

Greens member of the European Parliament Rebecca Harms has called for the decommissioning of Belgium's oldest nuclear reactor, Tihange 1, as it no longer meets international safety standards.

Harms' demand coincides with the publication of a damning new study on the risks of the continued operation of Tihange 1. The author of the study is Prof. Manfred Mertins, an expert in nuclear engineering and former member of the German Nuclear Safety Authority. He presented the findings at a news briefing in the European Parliament. The academic came to the conclusion that the continued operation of Tihange 1 due to "outdated reactor design, inadequate safety management and the accumulation of frequent unplanned events represents a potential danger for the site and its surroundings." It was particularly critical "that the results of international tests and current safety standards are not adequately taken into account."

Prof. Mertins said in the exhaustive study, which was commissioned by the Greens/EFA group, that: "It should be noted that the Tihange 1 nuclear power plant does not meet the requirements of reliable hazard and accident protection. The Tihange 1 nuclear plant provides only limited basic protection. Its design does not consistently cover the state-of-the-art requirements for protection against overarching external effects. This applies in particular to protection against airplane crashes, which, given the proximity to the airport at Bierset-Liège, is a highly safety-relevant factor. The crash of an airplane ‒ larger than a sporting aircraft ‒ would have a catastrophic impact on the site and its surrounding area."

Harms, who is nuclear energy spokesperson for the Greens/EFA group, said: "The frequent problems in recent years is an indication of the deficiencies and risks arising from the ageing of the [Tihange 1] plant. The Belgian authorities' handling of the problems of the Belgian reactor fleet, which is characterised by covering up and downplaying the risks, further increases the loss of confidence. The definitive closure of the oldest Belgian reactor could be a much-needed sign that the well-known problems are taken seriously. The authorities in neighbouring countries must also take action. The 43-year-old nuclear reactor Tihange 1 is threatening not only the safety of Belgian citizens but also of the citizens in neighbouring countries."

Abridged with light editing from: Martin Banks, 11 Dec 2018, 'Rebecca Harms: Decommission 'hopelessly outdated' Belgian nuclear reactor', www.theparliamentmagazine.eu/articles/news/rebecca-harms-decommission-ho...

Paladin Energy puts second African uranium mine into care-and-maintenance

Nuclear Monitor Issue: 
#862
4726
08/06/2018
Jim Green ‒ Nuclear Monitor editor
Article

Western Australia-based uranium mining company Paladin Energy announced on May 25 that it is winding down operations at the Langer Heinrich mine (LHM) in Namibia and placing it into care-and-maintenance.1

Perhaps the most striking aspect of the decision to mothball LHM is that Paladin claims it is the lowest cost open-pit uranium mine in the world.2 Moreover, the company wasn't even paying to mine ore ‒ mining ceased in November 2016 and since then medium-grade ore stockpiles have been processed.3 Alex Molyneux describes LHM as "world-class"2 … so evidently a low-cost, "world-class" mine can't even turn a profit processing mined stockpiles.

The cost of production was US$23.11/lb U3O8 in December 2017, and the average realized sale price in the second half of 2017 was $21.82.4

Paladin was faced with a choice between continuing to process medium-grade ore stockpiles (which would be exhausted in mid-2019) then shifting to low-grade stockpiles, resuming mining, or putting the mine into care-and-maintenance.

Anticipating the decision to mothball LHM, Paladin Energy CEO Alex Molyneux said in late-April: "The uranium market has failed to recover since the Fukushima incident in 2011, with the average spot price so far in 2018 the lowest in 15 years. It's deeply distressing to have to consider suspending operations at LHM because of the consequences for our employees, and the broader community. However, as there has yet to be a sustainable recovery in the uranium market, and with the aim of preserving maximum long-term value for all stakeholders, it is clearly prudent to consider these difficult actions."5

Paladin hopes to resume mining at LHM following "normalization" of the uranium market, which it anticipates in the next few years.2 But with no operating mines, Paladin may not survive for long enough to witness a market upswing. The only other mine operated by Paladin ‒ the Kayelekera uranium mine in Malawi ‒ was put into care-and-maintenance in July 2014.6 Paladin also owns a number of projects it describes as 'nonproducing assets', such as uranium projects in Australian states that ban uranium mining.

Paladin was placed into the hands of administrators in July 2017 as it was unable to pay EDF a US$277 million debt.6 In January 2018, Paladin's administrator KPMG noted that an Independent Expert's Report found that the company's net debt materially exceeds the value of its assets, its shares have nil value, and if Paladin was placed into liquidation there would be no return to shareholders.7 The company was restructured, with Deutsche Bank now the largest shareholder, and relisted on the Australian Securities Exchange in February 2018.2

Perhaps LHM will be sold for a song, either before or after Paladin goes bankrupt. A subsidiary of China National Nuclear Corporation (CNNC) has held a 25% stake in LHM since January 2014. Last year, the CNNC subsidiary considered exercising its contractual right to buy Paladin's 75% stake in LHM, but chose not to exercise that right following an independent valuation of US$162 million for Paladin's stake.8

Uranium production at Paladin Energy's uranium mines in Africa (tonnes uranium):

 

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Total

Langer Heinrich

919

1108

1419

1437

1960

2098

1947

1937

1893

1308

16,026

Kayelekera

104

670

846

1101

1132

369

4,222

Combined % world production

2.1%

2.4%

3.9%

4.3%

5.2%

5.4%

4.1%

3.2%

3.1%

2.2%*

 

Source: Data compiled by World Nuclear Association data, www.world-nuclear.org

* Based on estimated world production of 60,000 tU.

Mine-site rehabilitation

Paladin hopes to restart both LHM and Kayelekera. But in 2016, Paladin's CEO Alexander Molyneux said that "it has never been a worse time for uranium miners"9 and the situation has not improved since then ‒ uranium prices have fallen further still, and the long-term contract price recently fell below US$30/lb for the first time since May 2005.10

Sooner or later, both the LHM and Kayelekera mine-sites will need to be rehabilitated. Yet it is extremely doubtful whether Paladin has set aside adequate funds for rehabilitation. Paladin's 2017 Annual Report lists a 'rehabilitation provision' of US$86.93 million to cover both LHM and Kayelekera.11

One problem is that the funds might not be available for rehabilitation if Paladin goes bankrupt. A second problem is that even if the funds are available, they are unlikely to be sufficient. For comparison, Energy Resources of Australia's provision for rehabilitation of the Ranger uranium mine in Australia ‒ also an open-pit uranium mine ‒ is US$403 million (A$526 million).12 That figure is understood to be additional to US$346 million (A$452 million) already spent on water and rehabilitation activities since 201213 ‒ thus total rehabilitation costs could amount to US$749 million (A$978 million) … and the current cost estimates could easily increase as they have in the past.

Rehabilitation of LHM and Kayelekera could be cheaper than rehabilitation of Ranger for several reasons, such as the relative size of the mine-sites. However it stretches credulity to believe that the cost of rehabilitating both LHM and Kayelekera would be an order of magnitude lower than the cost of rehabilitating one mine in Australia.

Paladin was required to lodge a US$10 million Environmental Performance Bond with Malawian banks and presumably that money can be tapped to rehabilitate Kayelekera.14 But US$10 million won't scratch the surface. According to a Malawian NGO, the Kayelekera rehabilitation cost is estimated at US$100 million.15

Paladin has ignored repeated requests to provide information on the estimated cost of rehabilitating Kayelekera, but the figure will be multiples of the US$10 million bond and it is extremely unlikely that Paladin's provision of US$86.93 million for the rehabilitation of both LHM and Kayelekera is adequate.

If Paladin goes bankrupt, it seems likely that most of the costs associated with the rehabilitation of LHM and Kayelekera will be borne by the Namibian and Malawian governments (with a small fraction of the cost for Kayelekera coming from the bond) ‒ or the mine-sites will not be rehabilitated at all. Even if Paladin is able to honor its US$86.93 million provision, additional costs necessary for rehabilitation will likely come from the Malawian and Namibian governments, or rehabilitation will be sub-standard.

Australia's responsibility

The problem of inadequate provisioning for rehabilitation is most acute for Kayelekera ‒ it is a smaller deposit than LHM and more expensive to mine (Paladin has said that a uranium price of about US$75 per pound would be required for Kayelekera to become economically viable16). Thus the prospects for a restart of Kayelekera (and the accumulation of funds for rehabilitation) are especially grim.

Is it reasonable for Australia, a relatively wealthy country, to leave it to the overstretched, under-resourced government of an impoverished nation to clean up the mess left behind by an Australian mining company? Malawi is one of the poorest countries in the world.17 According to a 2013 U.N. report, more than half of the population live below the poverty line.17

Australia's Foreign Minister Julie Bishop should intervene to sort out the situation at Kayelekera and to prevent a repetition of this looming fiasco. The conservative Minister's eyes might glaze over in response to a moral argument about the importance of Australia being a good global citizen. But there is also a hard-headed commercial argument for intervention to ensure that the Kayelekera mine-site is rehabilitated.

It does Australian companies investing in mining ventures abroad no good whatsoever to leave Kayelekera unrehabilitated, a permanent reminder of the untrustworthiness and unfulfilled promises of an Australian miner and the indifference of the Australian government. Australia is set to become the biggest international miner on the African continent according to the Australia-Africa Minerals & Energy Group.18 But Australian companies can't expect to be welcomed if problems such as Kayelekera remain resolved.

Broader problems

Paladin exploited Malawi's poverty to secure numerous reductions and exemptions from payments normally required by foreign investors. United Nations' Special Rapporteur Olivier De Schutter noted in a 2013 report that "revenue losses from special incentives given to Australian mining company Paladin Energy, which manages the Kayelekera uranium mine, are estimated to amount to at least US$205 million (MWK 67 billion) and could be up to US$281 million (MWK 92 billion) over the 13-year lifespan of the mine."17

Paladin's environmental and social record has also been the source of ongoing controversy and the subject of numerous critical reports.19 The WISE-Uranium website has a 'Hall of Infamy' page dedicated to the company.20

Standards at Kayelekera fall a long way short of Australian standards ‒ and efforts to force Australian mining companies to meet Australian standards when operating abroad have been strongly resisted. Paladin's Kayelekera project would not be approved in Australia due to major flaws in the assessment and design proposals, independent consultants concluded.21 The consultants' report covered baseline environmental studies, tailings management, water management, rehabilitation, failure to commit to respecting domestic laws, use of intimidation and threatening tactics against local civil society, improper community consultation and payments to local leaders, and destruction of cultural heritage.

Sadly, these are familiar problems. Julie Bishop told the Africa Down Under mining conference in Western Australia in September 2017 that many Australian mining projects in Africa are outposts of good governance.18 The Australian government "encourages the people of Africa to see us as an open-cut mine for lessons-learned, for skills, for innovation and, I would like to think, inspiration," Bishop said.18

Such claims sit uneasily with the highly critical findings arising from a detailed investigation by the International Consortium of Independent Journalists (ICIJ).22 The ICIJ noted in its 2015 report that since 2004, more than 380 people have died in mining accidents or in off-site skirmishes connected to Australian mining companies in Africa.23 There have been six deaths at Kayelekera19 and at least one death at LHM.24

The ICIJ report further stated: "Multiple Australian mining companies are accused of negligence, unfair dismissal, violence and environmental law-breaking across Africa, according to legal filings and community petitions gathered from South Africa, Botswana, Tanzania, Zambia, Madagascar, Malawi, Mali, Cote d'Ivoire, Senegal and Ghana."23

References:

1. Paladin Energy, 25 May 2018, 'LHM Confirmation of Care & Maintenance', https://www.asx.com.au/asxpdf/20180525/pdf/43v8z12d7zf1r0.pdf

2. Charlotte McLeod, 25 May 2018, 'Paladin Energy Pulls Plug on Langer Heinrich Uranium Mine', https://investingnews.com/daily/resource-investing/energy-investing/uran...

3. World Nuclear Association, 26 April 2018, 'Namibian mine prepares for care and maintenance decision', www.world-nuclear-news.org/UF-Namibian-mine-prepares-for-care-and-mainte...

4. Mariaan Webb, 28 Feb 2018, 'Paladin posts loss as Langer Heinrich sales volumes fall, costs increase', www.miningweekly.com/article/paladin-posts-loss-as-langer-heinrich-sales...

5. Mining Technology, 30 April 2018, 'Paladin begins consultations to place LHM mine on care and maintenance', www.mining-technology.com/news/paladin-begins-consultations-place-lhm-mi...

6. Nuclear Monitor #847, 21 July 2017, 'Paladin Energy goes bust', www.wiseinternational.org/nuclear-monitor/847/paladin-energy-goes-bust

7. Matthew Woods for and on behalf of Paladin Energy, 2 Jan 2018, 'Directions Hearing and DOCA Update', www.asx.com.au/asxpdf/20180102/pdf/43ql352cxkfyhg.pdf

8. World Nuclear Association, 21 Aug 2017, 'CNNC decides against Langer Heinrich buyout', www.world-nuclear-news.org/C-CNNC-decides-against-Langer-Heinrich-buyout...

9. Geert De Clercq, 3 Oct 2016, 'Desperate uranium miners switch to survival mode despite nuclear rebound', www.reuters.com/article/us-uranium-nuclearpower-idUSKCN1230EF

10. www.cameco.com/invest/markets/uranium-price

11. Paladin Energy, Annual Report 2017, p.132, www.paladinenergy.com.au/sites/default/files/financial_report_file/palad...

12. ERA, 'Annual Report 2017', www.energyres.com.au/uploads/docs/2017_ERA_AnnualReport_ebook.pdf

13. ERA, 5 June 2018, 'ERA releases Closure Plan for Ranger mine', www.energyres.com.au/media/era-releases-closure-plan-for-ranger-mine/

14. Paladin, 14 Feb 2018, 'Reviewed Pro Forma Balance Sheet', www.asx.com.au/asxpdf/20180214/pdf/43rkwl3tsn1vgc.pdf

15. William Nyirenda / Citizens for Justice, 2 April 2014, 'Paladin lies to Malawi Government on its Kayelekera uranium mine', www.ejolt.org/2014/04/paladin-lies-to-malawi-government-on-its-kayeleker...

16. Sarah-Jane Tasker, 8 Jan 2015, 'Paladin Energy alerts ASX to spill at Malawi uranium mine', www.theaustralian.com.au/business/mining-energy/paladin-energy-alerts-as...

17. United Nations, 22 July 2013, 'End of mission statement by the Special Rapporteur on the right to food, Malawi 12 to 22 July 2013', http://web.archive.org/web/20130829181627/www.ohchr.org/EN/NewsEvents/Pa...

18. Eric Bagshaw, 10 September 2017, 'The Australian companies mining $40 billion out of Africa', Sydney Morning Herald, www.smh.com.au/federal-politics/political-news/the-australian-companies-...

19. Nuclear Monitor #847, 21 July 2017, 'Paladin Energy's social and environmental record in Africa', www.wiseinternational.org/nuclear-monitor/847/paladin-energys-social-and...

20. WISE-Uranium, 'Paladin Energy Ltd Hall of Infamy', www.wise-uranium.org/ucpalhi.html

21. Dr Gavin M. Mudd and Howard D. Smith, November 2006, 'Comments on the Proposed Kayelekera Uranium Project Environmental Impact Assessment Report', http://users.monash.edu.au/~gmudd/files/Comments-Kayelekera-EIS-Draft-v3...

22. www.icij.org/project/fatal-extraction

23. www.icij.org/investigations/fatal-extraction/key-findings-11/

24. Adam Hartman, 31 Oct 2018, 'Langer Heinrich worker dies', www.namibian.com.na/index.php?id=115939&page=archive-read

NUCLEAR NEWS

Nuclear Monitor Issue: 
#775
13/12/2013
Shorts

Namibia: Leach tank failure

All milling operations at the Rossing uranium mine in Namibia ground to a halt after a structural failure at one of twelve leach tanks in the processing plant on December 3. A statement from Rossing said that a leak was detected and it was decided to pump out the tank for fixing, and during that process the leach tank experienced a "catastrophic structural failure". Rossing said the slurry was "channeled in trenches and contained in a holding tank". The area was evacuated.

Ben De Vries, General Manager of Operations, said: "This is obviously a very serious incident which is currently under investigation. I can assure you that we are applying a rigorous and structured approach to determine the cause of this failure and ensure that we safely return the plant to normal operations as soon as possible. At the moment the milling operation had been stopped, but is expected to restart once the failed tank has been isolated from the production process. Production in the other areas of the mine has not been affected and continues as usual."

www.namibtimes.net/forum/topics/rossing-shuts-operations-after-catastrop...

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Australia: major spill at Ranger

A tank in the processing area of the Ranger uranium mine in the Northern Territory failed on December 7, spilling around 1.4 million litres of radioactive and acidic slurry. It is understood the radioactive liquid then flowed outside the ''bunded area'', or nearby containment banks, onto grassed areas and into the mine's stormwater and drainage system.

Workers were evacuated. All processing operations have been suspended (mining has already ceased as the open-pit ore body has been depleted). The federal environment minister has ordered an immediate clean-up and investigation − but still plans to devolve federal uranium mine approval and assessment powers to states and territories despite their demonstrated incompetence.

More than A$80 million (US$73 million ) was wiped off the value of Rio Tinto subsidiary Energy Resources of Australia (ERA) as a result of the spill, with shares down nearly 13%.

The Gundjeihmi Aboriginal Corporation (GAC), which represents the Mirarr Traditional Owners, has called for an audit of the site's facilities. "People living just a few kilometres downstream from the mine don't feel safe," GAC chief executive Justin O'Brien said. "How can we trust the assurances of a company which has repeatedly failed to safely manage this highly toxic material? It's a catastrophic failure on the part of not only the operator but also the government regulators in the Northern Territory and Canberra. ... This is nothing but a hillbilly operation, run by a hillbilly miner with hillbilly regulators."

About 60 Mirarr people live at Mudginberri, on Magela Creek, just 7 kms downstream from the mine. ''It's the wet now; it rains every day,'' O'Brien said. ''That creek is flowing right past the mine and into the community, where they fish and hunt, get barramundi, catfish, mussels. They drink the water. They play in it. People are worried sick.''

Monash University academic Dr Gavin Mudd said: ''ERA has form with this. The company has a history of delaying infrastructure maintenance in order to maximise profits.''

The Australian Conservation Foundation and the Environment Centre NT are calling for a halt to operations and an independent safety audit of the site and infrastructure; a review of the cumulative impacts of the Ranger operation and the adequacy of the regulatory regime; an independent assessment of the costs and consequences of the wider Australian uranium trade; a halt to any approvals or advance on the planned Ranger 3 Deeps underground uranium mining operation; and no devolving of federal powers to assess/approve uranium mining projects to state or territory governments

The Australian Manufacturing Workers' Union is calling for all operations to be suspended until a full audit and inquiry into the infrastructure on the site has been conducted. AMWU Regional Organiser Bryan Wilkins said: "This mine site has a history of not dealing with safety issues – this was an accident waiting to happen. This incident occurred after parent company Rio Tinto boasted they cut costs by $2 billion this year. They may be saving money but they are putting people's lives at risk in the process. This tank was about 20 years old and it was an accident waiting to happen – they are lucky no one was hurt this time."

www.abc.net.au/news/2013-12-07/spill-at-nt-uranium-mine-near-kakadu/5142148
www.abc.net.au/local/stories/2013/12/09/3907874.htm?site=darwin
www.theage.com.au/comment/another-million-reasons-to-probe-uranium-minin...
http://scott-ludlam.greensmps.org.au/content/speeches-parliament/taking-...
www.theage.com.au/environment/radioactive-spill-in-kakadu-stirs-rage-201...

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British bomb factory "played down" seriousness of fire

AWE, the private consortium that runs nuclear weapons plants at Aldermaston and Burghfield in Berkshire for the Ministry of Defence, "played down" a fire that could have caused "numerous fatalities" according to an internal investigation by the government's Health and Safety Executive (HSE). AWE was guilty of a "disturbing" catalogue of safety blunders in the handling of explosives, the HSE said, and its actions "fell far below the standard expected in an explosives manufacturing company." HSE released the report of its 10-month investigation into the fire at Aldermaston under freedom of information laws.

www.robedwards.com/2013/12/nuclear-bomb-factory-played-down-fire-says-sa...

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World Bank says no money for nukes, Goldman Sachs to sell uranium unit

The World Bank and United Nations have appealed for billions of dollars to provide electricity for the poorest nations. Announcing the 'Sustainable Energy for All' initiative, World Bank president Jim Yong Kim said US$600−800 billion a year will be needed to meet the campaign target of universal access to electricity, doubling energy efficiency and doubling the share of renewable energy by 2030.[1,2,3]

"We don't do nuclear energy," Kim said as he and UN leader Ban Ki-moon outlined efforts to make sure all people have access to electricity by 2030. Kim said: "Nuclear power from country to country is an extremely political issue. The World Bank Group does not engage in providing support for nuclear power. We think that this is an extremely difficult conversation that every country is continuing to have. And because we are really not in that business our focus is on finding ways of working in hydro electric power in geo-thermal, in solar, in wind. We are really focusing on increasing investment in those modalities and we don't do nuclear energy."[1]

Kim added that it had been difficult to find long term capital for poorer countries but insisted: "We will show investors that sustainable energy is an opportunity they cannot afford to miss."[1]

In July, the World Bank adopted a policy of providing "financial support for greenfield coal power generation projects only in rare circumstances," such as where there are "no feasible alternatives to coal."[4]

Meanwhile, US bank Goldman Sachs Group has reportedly put its uranium trading business up for sale. Goldman's two-person uranium desk was inherited with the purchase of US utility Constellation Energy's London-based trading operation in 2009.[5]

[1] AFP, 27 Nov 2013, 'World Bank says no money for nuclear power', www.globalpost.com/dispatch/news/afp/131127/world-bank-says-no-money-nuc...
[2] World Bank media release, 27 Nov 2013, http://tinyurl.com/wb-no-nukes
[3] Sustainable Energy for All: www.se4all.org
[4] John Upton, 18 July 2013, 'World Bank joins war on coal', http://grist.org/news/world-bank-joins-war-on-coal/
[5] Scott Disavino and David Sheppard, 25 Nov 2013, 'Goldman Sachs to sell uranium unit', www.bdlive.co.za/world/americas/2013/11/25/goldman-sachs-to-sell-uranium...

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Nuclear decline in OECD

The amount of nuclear-generated electricity in the OECD area declined by 5.2% between 2011 and 2012, according to the Brown Book of nuclear energy data published by the OECD Nuclear Energy Agency. Total OECD nuclear generation amounted to 1884 TWh in 2012, a 5.2% fall from 1988 TWh in 2011. Total electricity generation fell 0.1% over the same period. There were 331 operational reactors in the OECD as of 31 December 2012 − 133 in Europe, 125 in the Americas (US, Canada and Mexico) and 73 in the Pacific region (South Korea and Japan).

The Brown Book states: "The share of electricity production from nuclear power plants also decreased from 19.9% in 2011 to 18.9% in 2012. This decline reflects the permanent shutdown of three reactors that had reached the end of their operational lifetime (two in the United Kingdom and one in Canada), operational issues at some facilities and suspended operation at all but two reactors in Japan. Record electricity production at nuclear power plants in the Czech Republic and Hungary, combined with increased production in Canada, France, Spain and Sweden balanced, to some extent, declining production in Belgium, Germany, the United Kingdom and the United States."

www.oecd-nea.org/ndd/pubs/2013/7162-bb-2013.pdf
www.modernpowersystems.com/news/newsnuclear-generation-fell-5-in-2012-41...
www.nucnet.org/all-the-news/2013/12/03/shutdowns-hit-nuclear-generation-...

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Brazil cools on nuclear power plans; favours wind

Brazil will probably scale down its plans for new nuclear plants due to safety concerns following the Fukushima disaster and pick up some of the slack with a "revolution" in wind power, the head of the government's energy planning agency said. Mauricio Tolmasquim, chief of the Energy Research Company, told Reuters it was "unlikely" the government would stick to its plans to build four new nuclear plants by 2030. He declined to specify how many might be built instead.[1]

"After Japan, things got put on standby," Tolmasquim told Reuters. "We haven't abandoned (the plans) ... but they haven't been resumed yet either. It's not a priority for us right now."

Tolmasquim added: "This is wind power's moment. There's been a revolution in terms of cost."

Nevertheless, Brazil is proceeding with the Angra 3 nuclear power project. In November, Areva signed a contract worth 1.25 billion euros (US$1.67 billion) with the Brazilian utility Eletrobras Eletronuclear for the completion of the Angra 3 reactor, located in the state of Rio de Janeiro. The Angra 3 project has a long history. Construction started in 1984 but faltered two years later. A return to construction was approved in 2007.[2]

[1] www.reuters.com/article/2013/09/15/us-brazil-nuclear-idUSBRE98E06U20130915
[2] http://online.wsj.com/article/PR-CO-20131107-914400.html

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Switzerland can reach 98% renewable electricity

Switzerland already gets more than half of its electricity from renewable sources. Now, German researchers say that the country could have 98% renewable power by 2050, up from the current 57%. Germany's GLR has published the country edition of its Energy evolution study for Switzerland (currently only available in German). Written on behalf of Greenpeace, the study finds that Switzerland can increase the share of renewables by quickly expanding photovoltaics, while the growth of biomass, wind power, hydropower, and geothermal would be more moderate. The Swiss plan to shut down their last nuclear plant in 2025.

Renewables International, 4 Dec 2013, www.renewablesinternational.net/swiss-energiewende-investigated/150/537/...
Energy[R]evolution Schweiz, www.greenpeace.org/switzerland/de/Themen/Stromzukunft-Schweiz/EnergyRevo...

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South Africa puts nuclear on hold ... again

The South African Department of Energy has reported that new nuclear power will not be required until after 2025 or even later. The country is likely to take on other power sources, according to the updated version of the Integrated Resource Plan (IRP) for electricity, such as hydro and shale gas. The IRP is a 20-year plan that models demand and supply of electricity and plans for generation needs. Nuclear was seen as highly expensive compared to other available resources, however less-than-expected power demand is also playing a role in the latest projections. The National Planning Commission had cautioned against committing to an "expensive and irreversible" nuclear program, particularly when electricity demand has not grown in line with expectations.[1]

Earlier plans to build up to 20 GW of nuclear capacity were shelved in 2008, and more recent plans to build up to 10 GW by 2023 have now been dealt a blow. In addition, the devepment of Pebble Bed Modular Reactor technology consumed a great deal of R&D funding in South Africa before being abandoned in 2010.[2]

Two power reactors are in operation at the Koeberg Power Station near Cape Town, in the south-west of the country − the only power reactors in Africa.

[1] K. Steiner-Dicks, 4 Dec 2013, 'South Africa puts nuclear on hold', http://analysis.nuclearenergyinsider.com/new-build/south-africa-puts-nuc...
[2] Steve Kidd, 4 Dec 2013, 'South Africa: can it go further in nuclear?', www.neimagazine.com/opinion/opinionsouth-africa-can-it-go-further-in-nuc...

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Germany's 'Grand Coalition' committed to nuclear phase-out

The new German 'grand coalition' between Angela Merkel's Christian Democratic Union party, the Christian Social Union and the Social Democratic Party will remain committed to the nuclear phase-out and the energy transition, the coalition contract between the three parties says. "No later than 2022, the last nuclear power plant in Germany will be shut down," says the coalition contract.

The coalition government will continue the implementation of a law, adopted in July 2013, for choosing a site for deep geological long-term storage of high-level nuclear waste.

The coalition contract is available online (in German only): www.cdu.de/sites/default/files/media/dokumente/koalitionsvertrag.pdf

NucNet, 28 Nov 2013, 'Germany's 'Grand Coalition' Remains Committed To Energy Transition', www.nucnet.org/all-the-news/2013/11/28/germany-s-grand-coalition-remains...

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Nuclear power to stay in France

The French government won't shut any more nuclear reactors after the country's oldest plant at Fessenheim is shut down, industry minister Arnaud Montebourg said. "My answer is no, my answer is clear," Montebourg said in an interview in Paris. Nuclear power will always provide at least half of France's electricity, he said. Montebourg's comments undercut President Francois Hollande's promise, made in last year's election campaign, to cut France's atomic output from 75% to 50% of electricity production by about 2025.[1,2]

Meanwhile, Thomas Houdre from the regulator Autorite de Surete Nucleaire said that "significant safety improvements have to be made" at spent fuel pools at French nuclear power plants. "There is no way of managing an accident in a spent-fuel pool. We want the possibility of this happening to be practically eliminated," he said. Last year, EDF declared a "major safety event" after it was discovered that fuel storage pools at the Cattenom plant were vulnerable to leaks.[3]

[1] Tara Patel, 12 Nov 2013, 'France Won't Shut Any More Atomic Reactors, Minister Says', www.bloomberg.com/news/2013-11-12/france-won-t-shut-down-any-more-nuclea...
[2] 8 Dec 2013, 'French nuclear power here to stay, says industry minister', http://uk.reuters.com/article/2013/12/08/uk-france-nuclear-share-idUKBRE...
[3] Tara Patel, 4 Dec 2013, 'France's 58 Nuclear Pools Must Be Safer, Watchdog Says', www.businessweek.com/news/2013-12-03/france-s-58-nuclear-pools-must-be-s...

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South Korea: Nuclear power policy

Nuclear power should account for up to 29% of South Korean generation capacity by 2035, according to draft long-term energy plans submitted to the government. Previous plans called for 41% nuclear by 2035. The draft plan has been submitted to the parliament by the Ministry of Trade, Industry and Energy prior to a public hearing. In it, the government "recognises" the role of nuclear power but also says it plans to reduce power demand over the period to 2035. Korea's 23 nuclear reactors currently account for 22% of the country's generation capacity, and 29% of its electricity output. The South Korean nuclear power industry is in crisis because of a corruption and forgery scandal (see Nuclear Monitor #771 and #765).

WNN, 10 Dec 2013, 'Nuclear to remain Korean mainstay', www.world-nuclear-news.org/NP-Nuclear-to-remain-Korean-mainstay-1012137....

About: 
Ranger Mine

Uranium mining in Africa: radioactive revenues

Nuclear Monitor Issue: 
#727
6137
26/05/2011
SOMO
Article

For African countries, the revenue derived from the uranium mining operations of multinational corporations is -despite the high price of uranium- minimal, uncertain and volatile. The financial agreements that these countries make with the uranium producers regarding their share in the profits are the primary reason for this state of affairs. This is the conclusion of a new report from WISE and the Centre for Research on Multinational Corporations (SOMO): Radioactive Revenues: Financial Flows between Uranium Mining Companies and African Governments.

The report Radioactive Revenues analyses the financial aspects of uranium mining in the main African uranium producing countries -Namibia, Niger, Malawi and South Africa- and examines the activities of the four largest multinational uranium mining companies in Africa: the French AREVA group, the English-Australian Rio Tinto, the Australian Paladin Energy and the South-Africa-based AngloGold Ashanti.

Currently, one-fifth of all uranium worldwide is mined in Africa, and production is expected to double in the next two years. Nevertheless, uranium mining remains an uncertain source of revenue for African countries given the unstable price of uranium and the dependence on corporate profits.

The predictability of revenues
The most important revenues for host states from uranium mining in Africa are corporate income taxes, selling rights, mining royalties and, to a lesser extent, employment taxes, but there is a great deal of difference between the predictability and stability of these sources of revenue. Selling rights and royalties are generally more stable than corporate income tax as they do not depend directly on the profits of the mining companies, which can be highly volatile. The revenues from mining royalties depend primarily on uranium prices on the world market, but also on agreed prices and quantities in long-term contracts signed with customers.

Of all of the potential sources of revenues, those related to corporate earnings are the most volatile. These sources include corporate income tax (a percentage of taxable profits), taxes on dividends, and benefits from holding a stake in the mining company (dividend, retained earnings). These revenues are affected by uranium prices, production costs and by companies being able to reduce their corporate income tax liability through mechanisms that compensate them for losses in earlier periods and/or through the accelerated depreciation of investments.

In general, corporate income taxes may be further reduced by multinational corporations through the use of intra-group transactions that move their costs and earnings to jurisdictions where the corporate income tax rate is most favourable to the company. This study does not investigate the use of such (legal or illegal) tax avoidance/evasion mechanisms, but the frequent use of these mechanisms by multinational corporations in general likely reduces the contribution of corporate income tax as a source of revenue for host states and contributes to its unpredictability.

Niger’s right to sell a percentage of the uranium produced directly on the global market uranium provides an additional and somewhat stable source of revenue for the Nigerien government. This revenue stream is of course dependent on the market price.

Uranium prices
Many of the sources of revenue for host states depend heavily on the price of uranium on the world market. The period 2007–2009 was somewhat unique in this respect. During the period 1990- 2003, prices were much lower. Beginning in 2004, prices rose sharply, peaked in 2007, and have been slowly decreasing since then, although 2010 saw prices rise again slightly over 2009 levels.

The high prices during the 2007–2009 period caused earnings and profits of mining companies to rise as well. As a result, revenues for the host states from mining royalties and corporate income taxes increased as well. However, there is no guarantee that prices will not fall back to the low levels seen during 1990–2003, which would mean a significant reduction in revenues from royalties and corporate income taxes.

Changing regulations on revenues for host states
The study finds that some African host states have recently moved to strengthen their financial regulations on uranium mining in order to receive greater revenues from these operations. In 2007, Namibia decided that uranium mining companies should pay royalties of 3% of sales. In 2010, South Africa introduced mining royalties of 1.75% of gross sales when profits are 10% of gross sales.

However, the move that has been the most remarkable in generating additional revenues for the host state has been Niger’s acquisition of uranium selling rights, first negotiated with AREVA in 2007. During the years 2007, 2008 and 2009 the revenues received by the Nigerien government from this revenue stream amounted to Euro 9.1 million, Euro 27.5 million and Euro 20.9 million respectively. From 2013/2014 onwards, the Imouraren mine, with AREVA as the main shareholder, will enter into production. The government of Niger will have the right to sell 33.35% of the uranium produced, which is estimated to reach 5,000 tons annually. Also, for the existing mining operations by SOMAÏR and COMINAK, since 2010 Niger has the right to sell uranium according to its stake in the mining company (i.e. 36.6% and 31%, respectively).

Comparison of taxes and other contributions
Per kilogram of uranium sold, the study finds that Paladin in Malawi and AngloGold Ashanti in South Africa pay less taxes and other financial contributions than Rio Tinto in Namibia and AREVA in Niger. With a relatively low percentage of mining royalties to be paid and many opportunities for Paladin to reduce its corporate income tax in the early years of operations, Malawi is not expected to obtain much revenue from Paladin’s uranium mining operations if uranium prices decline. However, given the physical and operational differences between mines (e.g. uranium ore grade, capacity, production costs, lifetime, etc.), it is difficult to make a judgement about the regulations relating to revenues for the host states with regard to each mining operation.

In the period 2005 – 2009, the revenues received by Niger from the AREVA-owned mining operations amounted to Euro 225 million. In the same period, Namibia received Euro 181 million in revenue from the Rio Tinto-owned mining operations. A notable difference is the royalty rate, which is 3% in Namibia and 5.5% in Niger. In the period 2005 – 2007, Namibia received more revenue than Niger from corporate profits, but Niger has been catching up through the acquisition of selling rights.

Transparency of companies
Of the four companies reviewed in the study, Paladin appears to be the least transparent. It is the only company in the research that does not support the Extractive Industries Transparency Initiative (EITI) and was the only company unwilling to answer requests for information for this study. Payments such as employment taxes and customs duties could not be found in its annual reports, while payments of corporate income taxes and royalties were not listed on a country-by-country basis.

Rio Tinto is transparent with regard to taxes and other contributions to the Namibian government by its majority owned company Rössing Uranium. Rio Tinto, along with AngloGold Ashanti, reports its tax payments on a country-by-country basis. AREVA cooperates in the EITI-related process of comparing company payments and government revenues in Niger. Among the four countries examined in this report, Niger is the only one that participates in the EITI.

The agreements (investment contracts) that uranium mining companies sign with host states can have a law-making function and often include tax exemptions and stabilization clauses. Such mining agreements are generally not made public. Paladin has signed a mining agreement with the government of Malawi, including tax exemptions and a clause which guarantees that the company will not face any increase in taxes or other contributions in the coming ten years. The fiscal details of this mining agreement have been made public. For Niger, most fiscal details of such agreements could be found without gaining access to the mining agreements themselves. The agreements between AngloGold Ashanti and South Africa and Rio Tinto and Namibia did not seem to contain specific clauses on taxes and other contributions that differ from national laws.

Source: Radioactive Revenues. Financial Flows between Uranium Mining Companies and African Governments by Albert ten Kate & Joseph Wilde-Ramsing. SOMO, WISE 2011.
The report can be downloaded at: http://somo.nl/publications-nl/Publication_3629-nl/

African NGO's trained on uranium mining issues

Nuclear Monitor Issue: 
#721
6108
17/12/2010
Fleur Scheele, WISE Amsterdam
Article

Continued interest of international uranium mining companies in the possibilities of extracting uranium from African soil has attracted the attention of non-governmental organizations worldwide. Many organizations work both individually and in groups on uranium mining in various African countries. In November 2010, a training week for NGOs was organized on the issue in Tanzania. An extremely diverse group of African and non-African experts and organizations joined and shared their knowledge and strategies in order to obtain information and inspiration for further action on uranium mining in Africa.

Representatives from 21 organizations from 9 African countries were present during the training week. All of them have had experiences with international mining companies working in their countries, whether this be in exploiting or exploring uranium resources. Some, such as a few Namibian and Nigerien NGOs, have been working on the issue for years, whereas others have only recently been confronted with uranium exploration and/or exploitation, as is the case with the Central African NGOs.

The training week was organized and partially paid by WISE Amsterdam, and was co-financed by various international organizations: Cordaid, NIZA, Eirene, SOMO and OxfamNovib. Other organizations, such as CRIIRAD, Greenpeace International and the Australian Conservation Foundation kindly contributed by allowing some of their uranium mining experts to be present as trainers in Tanzania.

Aims and background
The backgrounds of the participating organizations appeared to be remarkably diverse: they work on development issues, poverty alleviation, labor rights, human rights, peacekeeping, nuclear issues, and/or environment. A few of these organizations do not necessarily aim at stopping uranium mining operations, but would rather impose boundary conditions on uranium mining. They wish to ensure that local communities can give consent on whether or not uranium mining should take place on their land, that public participation is taking place during every step of the mining processes, that rights of local communities are respected, and that the communities at the very least gain significant economic benefits.

Most organizations, however, prefer to avoid any kind of uranium exploitation in their countries and keep the standpoint ‘Leave Uranium in the Ground’. Experienced NGOs claim that many years of uranium mining worldwide have shown that the expectations of great economic development and increased welfare do not actually become a reality for local communities. In the long term, uranium mining does not provide a single benefit for communities. The promises often made by governments and companies have proven to be empty. This view was clearly expressed by Australian activist Dave Sweeney when he quoted Aboriginal Senior Traditional Owner Yvonne Margarula: “None of the promises last, but the problems always do.“

Tanzania, being one of the countries where international companies are now eagerly exploring uranium resources, proved to be a suitable host for the uranium training week: many Tanzanian NGOs, journalists, and members of parliament showed their interest by attending and actively contributing to the training week. They had mostly been invited by the Foundation for Environmental Management and Campaign Against Poverty (FEMAPO). FEMAPO has already been working in the Bahi district of Tanzania, where currently uranium exploration is taking place. They have worked with the communities of the Bahi district, and has informed them about the environmental hazards of uranium exploration in their region. Like FEMAPO, its sister organization CESOPE is currently working on informing the Tanzanian public and the affected communities. Uranium mining is a substantial threat to the Bahi people, as their livelihoods often entirely depend on their natural environment.

Central African organizations ACAPEE and OCDN, as well as some other Central African NGOs which did not attend the training week, are critically following French multi-billion dollar corporation AREVA. Assisted by several foreign organizations, they put pressure on their government as well as on the company to increase transparency of revenues and mining contracts. Also the necessary Environmental Impact Assessment is critically being followed by ACAPEE.

Central African citizens are not familiar with uranium mining and the public is not informed about its hazards. The capital-based NGOs try to improve their communication with the Bakouma community, in whose region AREVA is exploring uranium. Communication is difficult in the Central African Republic (CAR) due to limited infrastructure, the remoteness of many areas, and differences in languages. Therefore, NGOs in the CAR not only scrutinize the most prominent decision-makers, but also continuously search for the best strategies to inform the public, such as by gathering with other NGOs, trying to find ways to physically reach the remote area of Bakouma, and using radio stations.  

Cameroonian organizations CED (Centre for Environment and Development) and RELUFA (Reseau de Lutte contre la Faim, the Network of Poverty Alleviation) showed impressive material on their campaigns in Cameroon. They have provided villagers in exploration areas with GPS devices and training on GPS use. Thus equipped, the villagers can create their own village maps, on which land use is indicated. Sacred sites, agricultural land, rivers: anything can be included in these maps. After mapping the region, the maps can be used as a tool for discussions with the company as the villagers can point out exactly what land is important to them. CED and RELUFA do not only wish to empower the villagers and lobby at government and industry, they also strongly feel the need to do baseline studies on soil, water, and air and will soon start measuring radiation levels with their newly acquired Geiger-Mueller counter.

Several NGOs from Nigers capital Niamey were inexperienced on uranium mining issues and learned much about radiation, company structures, and social issues. They have all decided to start spending more time on the issue and to start informing the public in their country. Niger has seen uranium exploitation for several decades. This has had impacts on the country’s geography, economy, and environment. However, the communities are not well-informed on radiation, and the general public has not benefited from uranium revenues. ROTAB, a network of organizations for transparency and budgetary analysis, is working on the international Publish What You Pay campaign and has lately been paying much attention to the extractive industries in Niger. GREN, which also aims at the extractive industries, also participates in the PWYP campaign. In the past, these organizations focused  on gold and oil extraction in Niger. The international peace advocacy organization Eirene is active in Burkina Faso, Mali, and Niger, and is now planning to start working on uranium mines with the organization GENOVICO. All have decided to increase their attention for uranium mining.

Organisation Aghir-in-Man was also present during the training. This NGO is based in the mining community of Niger and has worked exclusively on uranium mining over the past years. Aghir-in-Man has worked with several international NGOs in the past, whereby the last successful collaboration was with Greenpeace International and CRIIRAD, who published a report on the environmental pollution around Niger’s uranium mines in 2010. Aghir-in-Man draws attention to the issue internationally, but also organizes meetings with local communities on practical issues. As a result of meetings where women were informed about the dangers of washing their husbands’ dirty mineworkers clothes from the mine, women now refuse to wash uranium-contaminated clothes. The dusty clothes, that can contaminate people internally, are now being washed by the company at the mine.

In Malawi, the recently opened mine of Australian firm Paladin Energy has drawn attention of ActionAid Malawi and Citizens For Justice. They are keeping an eye on the developments in their country. Paladin Energy proves to be very non-communicative towards civil society: both the country offices in Malawi and Namibia and the headquarters in Australia have not responded to repeated WISE requests for interviews or email contact. That Paladins first concern is not its corporate social and environmental responsibility is not surprising if one keeps in mind the words of its CEO John Borshoff: “Australia and Canada have become overly sophisticated. They measure progress in other aspects than economic development, and rightly so, but I think there has been a sort of overcompensation in terms of thinking about environmental issues, social issues, way beyond what is necessary to achieve good practice.” Keeping in mind the shocking environmental pollution and neglect of Aboriginal rights in Australia by the uranium mining companies, Borshoff’s explanation that this Australian situation is already beyond ‘good practice’ makes one fear for Paladin’s corporate behavior when working in Africa. Not only has Paladin Energy managed to obtain very favorable contracts in Malawi, so that people’s rights are not guaranteed and the Malawi state does not make much profit from mining, the mine is also based close to Lake Malawi, upon which many people depend for its water and food. Activists fear contamination of the lake. CFJ and ActionAid try to inform and assist local communities and will do more research on a rumor about illegal nuclear transports from Malawi to Namibia. They are also keen on doing more radiological measurements themselves, something they have already done with river water recently.

Meanwhile, Earthlife Africa is working hard in South Africa and Namibia. Both countries have to deal with mine waste from uranium- and other mines, communities that are being exposed to radiation, and authoritarian governments that ignore the concerns of civil society. The limited knowledge of the public on mining hazards, along with a repressive political culture in both countries, proves it difficult for Earthlife and other NGOs to force governments and industry to mitigate environmental and social problems. Other countries can learn from South Africa’s problems when it comes to managing abandoned mines. South Africa has a long mining history: gold, platinum, chrome, manganese, diamonds and other metals were and are being exploited on a large scale. This has left behind a legacy: today, there are over 6000 abandoned mines in South Africa. These are not only dangerous to enter; they also cause great environmental problems. Many of them fill up with extremely acid water which contaminates ground water and river systems, and they have toxic and radioactive mine waste stored next to them. As the mining companies which owned them are no longer existing, the abandoned mines have now become the responsibility of the government. The extent of the problems, the impact on environment and communities, and the associated costs are so high that the government is reluctant to start working on tackling even the most urgent problems. South Africa’s Federation for a Sustainable Environment and Earthlife are continuously battling to hold the authorities accountable. The campaigns of FSE have long been neglected, but the lobbying now seems to have drawn some national and international attention to the issue and the issue is being discussed in parliament – these first steps can provide the South African NGOs with some hope.

Namibian human rights organization NamRights has observed Namibia change from a new and promising independent country, proud of its independence and wealthy with natural and human resources, into a country where government is letting its wealth being exploited to the benefit of a few individuals in the highest ranks of industry and government. A study by Labour Resource and Research Institute LaRRI in 2008 has shown that mineworkers in the Rossing uranium mine are suspecting their illnesses are related to their occupation. However, there is no possibility for them to go see a specialized medical doctor who is independent from the mine, and any claims towards company Rio Tinto are therefore no option. Unfortunately, government lacks the means and the willingness to carry out proper radiological measurements, and does not assist the sick people. There might be a role for NamRights to draw attention to these ill workers and community members, and remind Namibia’s uranium-keen government that they have a greater responsibility than just to attract wealthy international corporations to Namibia.

Inspired by the numerous examples of successful activism the NGOs will continue to work individually and together on uranium mining. Every country needs to find its own solution. Yet international NGOs can support, motivate, and strengthen one another. All NGOs mentioned in this article are more than willing to share their information and thoughts with you. Please contact them if you wish.

For freely available reports on uranium mining in Africa, please contact NIZA, SOMO, and WISE. WISE is preparing a full report of the training week, including all presentations. A copy can be obtained via WISE in January 2011. Also, SOMO and WISE are about to publish a report on revenues for African states, and will distribute an extensive publication on African uranium mines and their social and environmental impacts by February 2011.

Source: Fleur Scheele, WISE Amsterdam
For more information, contact: Marieke van Riet, WISE Amsterdam

About: 
Earthlife Africa

In brief

Nuclear Monitor Issue: 
#712
18/06/2010
Shorts

Russia to invest heavily in Namibia.
Russia is ready to invest US$1-billion in uranium exploration in Namibia. "We're ready to start investing already this year," the head of state corporation Rosatom, Sergei Kiriyenko, told journalists. Rosatom seeks to compete for projects with global miner Rio Tinto in the African country. Earlier in May, Russia and Turkey signed a US$20-billion project for Moscow to build and own a controlling stake in Turkey's first nuclear power plant.

Namibia, the world's fourth-largest uranium producer, is home to the Rossing mine operated by Rio Tinto, which together with Paladin Energy's Langer Heinrich mine accounts for about 10% of global output. Other firms have been joining the exploration drive, with several new mines due to come on stream in the next five years.

Although Russia plans to spent a lot of money on foreign nuclear projects, it is clear that there is not enough money to realize its domestic nuclear program. As described in Nuclear Monitor 707 the number of reactors planned to be built by 2015 will be cut by 60%. And even that number will be hard to build.
Reuters, 20 May 2010


UK: Decommissioning black hole.
The new U.K. Government will have to find an extra £4 billion for decommissioning and waste management at the UK civil nuclear. Energy minister Chris Huhne said: "as you can imagine, this is a fairly existential problem. The costs are such that my department is not so much the department of energy and climate change, as the department of nuclear legacy and bits of other things." He added that there were "genuine safety issues" so the costs could not be avoided. As a result, the Government is considering extending  the life of some of the UK's oldest reactors as a way of raising extra income for decommissioning. Extending the life of the reactors owned by the NDA would raise extra income. The Wylfa reactor on Anglesey, for example, is due to close at the end of the year, but extending its operating life for another two years would mean £ 500 million (US$ 736 million or 598 million euro) in new revenue. The NDA is also considering extending the life of the Oldbury reactor, first opened in 1968. Any application to extend the life of reactors would have to be approved by safety regulators.
N-Base Briefing, 9 and 16 June 2010


France: Subcontractors not in epidemiological surveys.
French antinuclear network 'Sortir du nucléaire' supports nuclear industry subcontractor and whistleblower Philippe Billard. As a spokesperson of the organisation 'Santé / Sous-traitance' (“Health and Subcontracting”), he has undergone some retaliation measures after having denounced workers exposure to radiation. As a  whistleblower, he’s now treated as persona non grata in nuclear power  plants. His employer refuses to re-instate him at his previous job, in  contradiction with the Labour Inspectorate’s recommendations.

The French antinuclear network “Sortir du nucléaire”, considers Philippe Billard’s ousting as a means to put pressure on whistleblower workers. “Sortir du nucléaire”  decided to bring its support to the workers who, just like Philippe Billard, suffer from the unbearable working conditions imposed by the nuclear industry and undergo irradiation without even receiving appropriate health care.

To protect its corporate image, EDF chose to give subcontractors the most dangerous tasks. These people working in the shadows have insecure jobs and are mostly temporary and/or nomad workers. Every year, 25,000 to 30,000 of them are made to carry out tasks where they are exposed to radiations. This system allows EDF to cover up a huge health scandal, since these subcontractors, who get 80% of the annual collective dose from the whole French nuclear park, are not taken into account in epidemiological surveys! (See: Annie Thébaud-Mony, « L’industrie nucléaire organise le non-suivi médical des travailleurs les plus exposés », Imagine, May-June 2007)

EDF is shamelessly multiplying talks on transparency while hushing up workers whistle blowing about the imminent catastrophe. In the ageing French nuclear park, the accident risk is increasing, all the more since maintenance periods are shortened in order to save time and money. However, the official motto remains “Nothing to report” and short-term profits are more important than common safety and security.
Press release 'Sortir du nucleaire', 31 May 2010


Switzerland: Thousands march against nuclear power.
More than 5,000 people gathered in Goesgen, canton Solothurn, in northern Switzerland on May 24, for a peaceful protest against the continuing development of nuclear energy in the country. The protest had participants from 83 groups in Switzerland, France, Germany and Austria. One of their key points was that Switzerland’s nuclear power plans are preventing the rapid development of alternative energy programs. The demonstration was one of the largest in last years.
www.menschenstrom.ch


Another subsidy for Areva in the U.S.
"As part of a broad effort to expand the use of nuclear power in the United States and reduce carbon pollution," the U.S. Department of Energy has approved a US$2 billion loan guarantee for French nuclear power developer Areva S.A. (owned for about 93 percent by the French State). The loan guarantee will support Areva's Eagle Rock Enrichment Facility near Idaho Falls, Idaho, which will supply uranium enrichment services for the U.S. nuclear power industry. Areva's US$3.3 billion nuclear enrichment facility will use centrifuge technology instead of gaseous diffusion technology that is more common in the U.S. but uses more energy. Areva had filed its application for the guarantee with the Department of Energy in September 2008.

The group can tap the guarantee once its Idaho Falls project has received full approval by the authorities. The Nuclear Regulatory Commission is expected to decide sometime next year on a licence for the facility. Areva plans to have the plant in operation in 2014. 

The United Stated Enrichment Corporation (USEC) is also seeking a loan guarantee for its American Centrifuge Project under development at Piketon, Ohio. Following DOE's announcement the consensus would seem to be that 'd be bad news for USEC. But according to USEC spokesman Paul Jacobson that is not the case. Jacobson said USEC was encouraged that DOE recognizes the need for more enrichment services to supply the nuclear needs of the future. He also noted that DOE, as noted in the federal agency's press release, still has another US$2 billion in loan authority available. At one time, USEC was going head to head with Areva for the loan guarantees, and USEC played up the foreign-owned company versus domestic company, etc., but now the company -- on the public front at least -- seems to be focused on the nuclear renaissance and the idea that there's enough demand in the U.S. and abroad to support multiple new ventures in the enrichment arena.
U.S. DOE, 20 May 2010 / Reuters, 20 May 2010 / Atomic City Underground, 21 May 2010


EC: investigation non-compete clauses Areva, Siemens.
The European Commission has opened an antitrust case to determine whether non-compete clauses in civil nuclear technology arrangements between Areva of France and Germany's Siemens violate EU competition rules. The opening of antitrust proceedings on June 2, means that the EC thinks the case merits investigation. EC competition spokeswoman Amelia Torres said an investigation was triggered by a complaint from Siemens after Areva took full control last year of reactor construction and services company Areva NP, a joint venture originally set up by Framatome (which later became Areva) and Siemens in 2001. But non-compete clauses between the two companies remain, even though Siemens sold its 34% stake to Areva last year.

The shareholders' pact between Areva and Siemens for Areva NP is not public, but a French official familiar with it confirmed that it forbids either party from competing with the other in businesses covered by Areva NP for eight years after a potential divorce.

Siemens said in January 2009 that it intended to exercise its option, to sell its 34% stake in Areva NP to Areva and leave the joint venture. A few weeks later, Siemens said it had signed a memorandum of understanding on a nuclear power business partnership with Rosatom, a Russian state-owned nuclear conglomerate. After bilateral discussions failed to produce an agreement on the price at which Areva would buy the 34% stake in Areva NP, the erstwhile partners last year asked an arbitration court to decide the matter.

EC competition spokeswoman Amelia Torres said the investigation would be carried out by the EC at EU-level, rather than by national governments. There is no timescale for the investigation as this depends on the complexity of the case and the extent to which the parties cooperate. Torres said she was not able to prejudge whether a fine would be imposed if the arrangement were found to be in breach of competition rules.
Platts, 2 June 2010


U.K.: Waste costs 'not acceptable' for industry.
The nuclear industry has been heavily lobbying to change proposed charges for managing wastes from nuclear reactors. Papers released under Freedom of Information show how the French company EDF pressed the previous government to change the proposed 'high fixed cost' for managing wastes and the timetable for handing the management of wastes to the Nuclear Decommissioning Authority. The previous government made significant changes to the way it proposed changing companies for managing their wastes. It also agreed that responsibility for wastes should pass to the NDA after 60 years instead of the original 110 years. This would reduce the financial liabilities and costs for companies.

EDF told the government the original proposals were "non-acceptable" and made it uneconomic to develop new reactors.
N-Base Briefing 665, 9 June 2010


Chubu delays Hamaoka-5 restart after earthquake.
Japan: The Chubu Electric Power Company has extended the closure of its 1,380-megawatt Hamaoka No.5 reactor by a further two months to the end of July. Chubu Electric said the decision had been taken because the company is still analyzing why the impact of the August 11, 2009 earthquake on the reactor was greater than for other nuclear units. The company explained that, based on this measure of earthquake ground motion, the impact of the tremor was significantly higher than for other reactors. Chubu Electric will report its findings to the Ministry of Economy, Trade and Industry. It hopes to restart the reactor after METI and other government  agencies have agreed the report and local communities have consented to the restart of the reactor. The restart of the No. 5 reactor was originally planned for the end of December 2009, but pushed back several times.
Power in Asia 555,  27 May 2010


Bangladesh: cooperation agreement with Russia.
The government of Bagladesh has increased momentum for the installation of the country’s first nuclear power plant. The US$1.5-billion project will be built at Rooppur, about 300 kilometers from the capital Dhaka. A committee headed by the state minister for science and information and communication technology, Yafes Osman, has been constituted to implement the project. The 22-member committee, which has the chairman of the Bangladesh Atomic Energy Commission as its member secretary, will examine funding issues and assess the risks associated with the fiscal arrangements. It will also study nuclear waste management issues. Bangladesh plans to install the 2,000-megawatt plant (for US$1.5billion?) at Rooppur from 2017. It signed a five-year framework cooperation agreement with the Russian atomic energy company Rosatom in May, with the final agreement due to be signed during Prime Minister Sheikh Hasina’s visit to Moscow later in 2010.
Power in Asia 555, 10 June 2010


Go-ahead for Urenco's Eunice plant.
The US Nuclear Regulatory Commission (NRC) has authorized the operation of the first cascade at Urenco's Louisiana Energy Services (LES) gas centrifuge enrichment plant at Eunice, New Mexico. LES is a wholly owned subsidiary of URENCO Ltd. Urenco said the process to bring the plant from construction status to fully operational will begin later in June. The Urenco USA plant (formerly the National Enrichment Facility)  will be the first commercial centrifuge enrichment plant to become operational in the USA. Urenco formally inaugurated the plant in early June. "At full capacity, the facility will produce sufficient enriched uranium for nuclear fuel to supply approximately 10% of the electricity needs for the US", according to the Urenco press release.
Urenco Press release, 11 June 2010