Jabiluka - The Background
NLC Briefing Notes 16 June 1996


Pancontinental 1971-1991
Pancontinental Mining Ltd discovered two uranium deposits in 1971 and 1973. Jabiluka #1 is not being considered for development. Jabiluka #2 is located approximately 20 kms due north from the existing Ranger operations.

Ore reserves at Jabiluka are currently estimated at 19.5 million tonnes at 0.46% uranium oxide. The contain an estimated 90,000 tonnes of uranium oxide which is currently priced at around $US14.30/lb. This price is expected to reach $US18.00/lb by the year 2000.

The Pancontinental proposal was for an underground mine accessed from the west of the ore body, making it visible from the existing public road, and to transport the ore 6 kilometres south by conveyor belt to a mill and tailings dam within the Jabiluka lease.

In 1979 an environmental impact Statement was prepared and submitted by Pancontinental and was subsequently approved by the statutory authorities. An agreement with traditional Aboriginal land-owners was entered into under the Aboriginal Land Rights (Nothern Territory) Act (ALRA). It was signed on July 21 1982 by Pancontinental Mining Ltd, Getty Oil Development Co Ltd and the Northern Land Council (NLC).

The development did not proceed because export approval for uranium concentrates could not be obtained under the Hawke Labor Government's "three mines" policy.

Energy Resources Australia (ERA) 1991-1996

In 1991 the operators of the Ranger mine purchased the Jabiluka lease from Pancontinental for the sum of $125 million. In December 1991, under instructions from the traditional owners, the NLC consented to the transfer of the lease to ERA. However, having experienced the impact of mining on the region for the last 15 years there has since ben a generational change and the senior traditional owners now express serious concern about further mining.

The current ERA proposal for mining at Jabiluka differs significantly from the Pancontinental proposal. ERA also proposes an underground mine but with no on-site processing. A 22.5km truch haulage dirt road will take ore from Jabiluka to the Ranger site. Milling, processing and tailings disposal will be preformed at the existing Ranger site.

Aboriginal land

The Ranger and Jabiluka deposits are on Aboriginal land, under the ALRA, surrounded by Kakadu National Park. Under the act Aboriginal owners have the power of veto over mining developments on their land. This can however, be overridden by the Federal Minister for Aboriginal Affairs if the development is deemed to be in the "national interest".

The NLC is one of four Northern Territory land councils established under the ALRA. Their statutory role is to represent the interests of Aboriginal people in their regions on land matters. The land councils are required to sign-off any agreements between traditional owners and developers on Aboriginal land.

Social and Cultural Concerns

The current generation of traditional owners are of the view that social and cultural impacts of the project, in whatever form it takes, could be unacceptable. This view is largely based on their experience with the Ranger mine and the continuing devestating effects on the Aboriginal population in the area. This study must be objective and independent and conducted in a manner which is aceptable to all parties, particularly the traditional owners. This study must occur before there is any further consideration of mining at Jabiluka, or indeed before any major developments in the area. It must be seperate to any environment impact assessments for Jabiluka.

The study is needed because:
Fifteen years of experience has led to growing concerns over the impact on the social and cultural life of local people, such as alcoholism and alcolhol related deaths, declining health, family conflict and cultural breakdown.

The traditional owners are in no position to make informed decisions on the Jabiluka project without such information. The ALRA requires traditional owners be fully informed before they consent to developments on their land.

Mining of the Ranger deposit has not offered significant opportunities for Aboriginal people. They have found that land management and other activities related to Kakadu National Park provide more attractive employment options.
Environmental concerns

While the social and cultural concerns are paramount, the traditional owners also have considerable concerns over the environmental impact of any expansion of mining including ore haulage proposals and potential impact on waterways.[end]