The Federal Opposition has revealed its plan for Australia’s energy future, which will reportedly involve a mix of nuclear, renewables and “significant amounts of gas”.
While the Labor Government has been pursuing renewable uptake, hydrogen and electricity infrastructure in its plans for Australia’s future, the Coalition has a very different vision, involving seven new nuclear power plants.
A nuclear energy future
“Today we announce seven locations that we have looked at in great detail over a long period of time that can host new nuclear sites that will be part of an energy mix with renewables and significant amounts of gas,” leader Peter Dutton said.
“It will mean that those end-of-life coal fire power station sites we can utilise the existing distribution network.
“Labor has promised 28,000 kilometres of new poles and wires, and there’s no transparency about where that will go.
“We’ve been very clear about the fact that we don’t believe in that model, we want to utilise existing assets that we’ve got.
“Our plan today, which will include these seven sites, is integral to the energy roadmap for our country.”
Dutton asserted that the new nuclear assets would be owned by the Commonwealth, and the Coalition intends to work with experts and state leaders to deliver its proposed programs.
The newly proposed nuclear sites include the following:
- Callide and Tarong in Queensland.
- Liddel and Mount Piper in New South Wales.
- Loy Yang in Victoria.
- Muja in Western Australia.
- A retired coal-fired power station in Port Augusta, South Australia.
Uranium mining ban presents barriers
The Coalition’s plan has already received criticism from multiple sectors, including state leaders, multiple climate action groups, doctors, economists and the Federal Government itself.
The most glaring issue for the Coalition’s plan – apart from the economic feasibility and the social and environmental impact of the new reactors – is the ban on uranium mining in Australia.
While the Northern Territory, Tasmania and South Australia allow uranium mining, the other major mining jurisdictions including New South Wales, Western Australia and Queensland have banned the practice at present.
Australia also currently does not have a uranium enrichment industry, which would necessitate the ore being shipped overseas for enrichment and then bought back at a premium.
"We'll work through all that,” Deputy Opposition Leader Sussan Ley asserted when asked how the Coalition would get around the uranium mining bans.
"We have a sensible proposition to put to the Australian people and I know that when we talk about nuclear people are starting to tune in — understanding that if 19 of the 20 biggest economies in the world are using nuclear, if it makes sense for cleaner baseload power because it's zero emissions, if it helps us get to 2050 net zero, if it does all of the things that we want it to do in terms of emissions and in terms of securing affordable cheaper power for Australians — why would people not consider it?
"And I believe they will."
Calls for an end to the ban on uranium mining have grown louder in recent months, as the spot price of uranium on the market soars to new heights, having risen from US$24.5 per pound in 2020 to US$86.25 per pound today.
Uranium miners on the ASX
Regardless of whether nuclear power plants will form a part of Australia’s future energy mix, Australia holds the largest reserves of uranium in the world, more than doubling those held by the world’s number 2, Kazakhstan.
Should the ban on uranium mining be lifted, there are plenty of ASX companies ready and waiting to take advantage.
Aura Energy Ltd (ASX:AEE, AIM:AURA) is developing the Tiris Uranium Project in Mauritania, boasting a mineral resource estimate of 58.9 million pounds of uranium. The company has already secured exploitation and environmental permits, with a 30-year mining convention granted.
Alligator Energy Ltd (ASX:AGE, OTC:ALGEF) operates three uranium projects in Australia, including two in-situ recovery (ISR) assets in South Australia and a high-grade uranium project in the Northern Territory with a combined mineral resource estimate of more than 53 million pounds.
AuKing Mining Ltd (ASX:AKN) holds assets in Australia and Tanzania, including four uranium projects with more than 101 million pounds of contained uranium.
GTI Energy Ltd (ASX:GTR, OTC:GTRIF) operates in the US, with three uranium assets across Wyoming and Utah. Its assets hold a combined mineral resource estimate of about 100 million pounds of uranium.
Finally, Peninsula Energy Ltd (ASX:PEN, OTCQB:PENMF) is developing one of the largest US uranium projects in terms of both size and scale, with a resource of 58 million pounds of uranium at the Lance Project. A further 6.9 million pounds are estimated at the Dagger Project.