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Expanding Olympic Dam: with great power comes great responsibility

The South Australian and Federal governments have approved another expansion at Olympic Dam. This expansion raises some very important questions about Australia’s role in the future of global energy and its associated environmental risks. This gargantuan copper-uranium-gold-silver-rare-earths mineral…

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Exporting uranium carries a risk not just in Australia, but all over the world. Mad House Photography

The South Australian and Federal governments have approved another expansion at Olympic Dam. This expansion raises some very important questions about Australia’s role in the future of global energy and its associated environmental risks.

This gargantuan copper-uranium-gold-silver-rare-earths mineral resource also brings with it enormous issues – not the least of which revolve around the uranium.

The amount of uranium contained at Olympic Dam is the biggest of any deposit in the world, by a factor of ten. It makes Australia a major player in uranium exports and the global nuclear debate.

In a post-Fukushima world, the hard questions need to be asked: what is Australia’s role in fuelling nuclear disaster, creating high-level nuclear waste and feeding nuclear weapons risks around the world?

Where does our uranium go?

Ever since 1977, all Australian uranium has supposedly been exported under strict safeguards and exclusively for civilian nuclear power. According to the Australian Safeguards and Non-proliferation Office (ASNO), Australia has 22 bilateral safeguards covering 39 countries.

We are still trying to expand this list, with the United Arab Emirates under negotiation and India a possibility in the near future. In a similar fashion to coal and climate change, Australia’s miners and politicians are keen to hawk their nuclear product to any country willing to buy.

According to ASNO, in the financial year 2009/10, Australia exported 7,555 tonnes of uranium oxide (or U3O8) valued at $758 million. This represented some 12% of world nuclear fuel requirements.

In 2009/10, the three uranium mines in Australia – Ranger (NT), Olympic Dam (SA) and Beverley (SA) – produced 4,262, 2,279 and about 450 tonnes of uranium oxide respectively. Typically, over the past decade, exports have averaged close to 9,400 tonnes of uranium oxide per year (averaging ~$600 million) but problems at all three mines have limited recent production.

All three mines refuse to publicly report which companies and countries they export to. The only information publicly available on uranium exports is from ASNO, which used to report country export data.

Now they simply say that (calendar) 2009 exports were about one-third each to “North America, Europe and Asia”. Full disclosure is avoided to “protect commercial confidentiality”.

By December 2009 (the most recent ASNO data available), Australia was responsible for 159,139 tonnes of nuclear material sourced from our uranium exports. About 61% of this is depleted uranium. There is also 127 tonnes of plutonium remaining in spent nuclear fuel and 1.7 tonnes of separated plutonium (mostly expected to be in Japan).

Where does our uranium go and what does it do when it gets there? AAP

Every tonne of uranium exported increases the burden of depleted uranium, high-level nuclear waste and plutonium stocks, fuelling not only nuclear disasters (such as Fukushima) but potentially increasing nuclear weapons risks (for example, in India-Pakistan).

Do we need the money from uranium?

How does uranium compare to our other exports? According to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) export data, in the decade from 2000/01 to 2009/10, uranium exports averaged $596 million/year. Lamb, cheese, cotton, barley, sugar, wool, wine, other crops, wheat, and beef-veal, each averaged $664, $806, $955, $1,170, $1,286, $1,825, $2,309, $3,463, $3,665, and $4,002 million/year, respectively.

Black coal averaged approximately $22.5 billion/year and iron ore approximately $14.6 billion/year. For calendar year 2010, Aussie coal exports were 301 million tonnes, leading to approximately 769 million tonnes of greenhouse gas emissions in the countries where it was used.

If we assume that every tonne of uranium exported in 2010 actually shut down a coal-fired power station (which has yet to happen anyway), the most this could reduce emissions by would be 257 million tonnes.

An often ignored aspect of the Olympic Dam orebody is that it also contains rare earths – used in magnets for wind turbines, fuel cells, and a range of useful environmental technologies which are growing rapidly.

Based on BHP Billiton’s 2011 reported mineral resource for Olympic Dam, the contained copper-uranium-gold-silver is worth $587, $284, $154 and $14 billion, respectively – a total of a mere trillion dollars. The rare earths are worth about $4,500 billion.

At recent iron ore prices, BHPB’s iron ore resources in the Pilbara are worth $4,580 billion. Given the hype about rare earths, it is stunning that BHPB are continuing to ignore the potential for rare earths from the mineral wealth at Olympic Dam – after all, it makes the uranium look like small change.

BHPB’s real game remains more coal, more iron ore, more copper, more oil and gas (amongst a few others). Uranium is merely a sideshow, but it’s a nice distraction in the public debate on fundamental issues such as energy safety and security and climate change.

We know the financial benefits: what are the costs?

The full size of the mineral resource at Olympic Dam is more than nine billion tonnes. Given the approvals just awarded to the current expansion (expect another even bigger expansion proposal within a few years), this means billions of tonnes of radioactive waste from the extraction process could now lie in the South Australian arid rangelands forever.

Despite the mine's benefits, many worry about the costs. AAP

The tailings (residue) at Olympic Dam are supposed to be covered by soil and rock. No upfront assessment of the safety of this approach has taken place. The tailings will only be assessed for their long-term risk to the environment and people “from closure to in the order of 10,000 years”.

The Ranger uranium mine in the Northern Territory is required by the Federal Government to place all tailings into former pits to ensure “the tailings are physically isolated from the environment for at least 10,000 years” and that “any contaminants arising from the tailings will not result in any detrimental environmental impacts for at least 10,000 years”. This is a clear case of world’s best practice.

For BHP Billiton to be allowed to leave billions of tonnes of radioactive tailings above ground and subject to wind and water erosion in perpetuity, merely on the basis of some future “assessment” is, without doubt, world’s worst practice. The quantitative technical proof that such a scheme was safe should have been presented during the environmental assessment and not left to a future “assessment”.

The evidence is abundantly clear: at Radium Hill in South Australia, less than ten years after covers were placed over its tailings, those covers were eroding and exposing tailings to wind dispersion.

In the Witwatersrand goldfield in South Africa, billions of tonnes of radioactive gold tailings blow dust freely across communities or leak polluted water into the environment (issues Marius Kloppers, the CEO of BHPB, should be very familiar with).

These impacts should be considered alongside the mine’s other effects: the huge desalination plant near Whyalla, increased Great Artesian Basin extraction, the huge pit, the new mountain range (made from the waste rock dumps), massive energy and chemicals consumption and so on.

It is clear that the ledger for Olympic Dam is far from a well-balanced, carefully assessed sum demonstrating a sound case of national benefit. Unfortunately, it appears to be quite the opposite.

Australia has a unique position in the global debate about energy – whether it’s from coal or uranium. It remains extremely disappointing that successive governments continue to promote false solutions such as more uranium (and coal) exports rather than focus on renewable and sustainable energy solutions (such as baseload solar thermal).

Focusing on renewable energy would earn Australia not only export dollars but credibility and respect. After all, with great power (or mineral resources) comes great responsibility.

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Comments (22)

  1. Permalink
    Ben Heard

    Ben Heard

    Director, ThinkClimate Consulting (logged in via email @thinkclimateconsulting.com.au)

    That is a really, really bad article. I would have failed any of my post-grad students for taking such an uncritical view of risk, and for writing with such outright bias. That it comes from someone from my old university who does the actual marking astonishes me.

    I repeatedly point out in presentations that a "fact" without context provides no knowledge, only a distortion of truth. This talk of a "mountain of radioactive waste" at the mine... does anyone care to point out that it is less radioactive…

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  2. Permalink
    Peter Lang

    Peter Lang

    Retired geologist and engineer (logged in via email @netspeed.com.au)

    This is another anti-nuclear rant by an academic. When will Australia get over its nuclear-phobia?

    Uranium is the fuel for nuclear energy. Nuclear energy is least cost, low emisisons, electricity generation technology. It is about the safest and most environmentally benign of all electricity generation technologies. It really is time thae Australian academics gost their facts right and stopped repeating the nonsense from the so called environmental NGO's and anti-nuke activists. Here http://bravenewclimate.com/2011/10/11/cutting-oz-carbon-abatement-costs-np/ is an article published yesterday which concludes:

    "For an additional cost of between zero and $82 billion to add 25 GW of nuclear generators into the Treasury core policy, Australia could save up to $185 billion in overseas abatement cost by 2050 and reduce our emissions from electricity generation by 95 per cent below 2000 level by 2050."

  3. Permalink
    John Bennetts

    John Bennetts

    Engineer (logged in via email @bigpond.net.au)

    What twaddle!

    The Conversation does itself no good by publishing nonsense in any form, especially scaremongering rants.

    If I missed anything of value after the half-way mark, that is because I simply could not take any more.

  4. Permalink
    Luke Weston

    Luke Weston

    Physicist / electronic engineer (logged in via email @gmail.com)

    Contrary to the usual tendentious nonsense from anti-nuclear activists, Olympic Dam is not really a uranium mine. Olympic Dam is a copper mine. Following the expansion, the total copper production at Olympic Dam will be 730,000 tonnes per year, up from about 220,000 tonnes per year at the present. (Copper smelting is, incidentally, what requires most of the energy input to the Olympic Dam site, nothing to do with uranium.) After the ore is mined and milled, the copper minerals are separated and processed…

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  5. Permalink
    Mark Duffett

    Mark Duffett

    (logged in via Facebook)

    "With great power comes great responsibility" indeed, what a tangled web is being woven here.

    The sheer untrammelled tendentiousness of this piece is revealed by its consideration of "what is Australia’s role in fuelling nuclear disaster...in a post-Fukushima world" (note radiation casualties from Fukushima = 0) as "a hard question that needs to be asked". When apparently, calculating the damage from all the fossil fuel combustion that could be avoided if Olympic Dam's uranium were used to generate…

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    1. Permalink
      Mark Duffett

      Mark Duffett

      (logged in via Facebook)

      Sorry, I missed the bit in the middle about Australian uranium preventing 257 Mt of CO2 emissions. But this offsetting of over a third of Australia's coal exports is hardly to be sneezed at, given that even this significant amount has been achieved with uranium amounting to only 2.6% of the dollar value of the coal. And this is BEFORE the expansion!

      Moreover, taking average prices from 2000/01-2010 is quite misleading with respect to uranium, so much so as to look suspiciously like cherry-picking. 2001 just happened to be when U prices reached their all-time nadir. Since then they've sustained increases of well over FORTY-fold, even with the post-Fukushima slump taken into account (http://en.wikipedia.org/wiki/Uranium_market).

  6. Permalink
    Luke Weston

    Luke Weston

    Physicist / electronic engineer (logged in via email @gmail.com)

    If you live in a part of the world where uranium (and uranium daughters) are naturally geologically abundant, then you're exposed to natural background ionising radiation dose from that natural geology - from uranium, radium and the other uranium daughters in the soil, in dust, from gamma radiation directly from the ground, from radon in the air, and from uranium and uranium daughters in water. All these background dose pathways are completely natural - they're a fact of life. If you're afraid of…

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  7. Permalink
    Hamish Jackson

    Hamish Jackson

    (Physician)

    Thanks Gavin for highlighting the apparently drastic short-comings of BHP's environmental assessment in planning for above ground residue dumping at Olympic Dam (and the other environmental issues raised). If correct, the case you present is an interesting contrast to Dean Dalla Valle's (BHP) comments in the Australian 11/October:

    "The (approval) announcement is the culmination of one of the most comprehensive and rigorous environmental assessment processes undertaken in Australia ...."

  8. Permalink
    Marc Hendrickx

    Marc Hendrickx

    (Geologist)

    Gavin states:
    "The evidence is abundantly clear: at Radium Hill in South Australia, less than ten years after covers were placed over its tailings, those covers were eroding and exposing tailings to wind dispersion."

    In email correspondence he now indicates the event occurred "a decade ago". Photos provided by Gavin show the erosion to be a minor scour. Gavin does not indicate above that the erosion was quickly repaired, or that the Radium Hill site is currently subject to an active management…

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  9. Permalink
    Oliver Roberts

    Oliver Roberts

    PhD (logged in via email @gmail.com)

    The author clearly has a jaundiced view of the benefits of mining in Australia, and of uranium mining in particular. In our energy-hungry (and increasingly carbon-constrained) world, he should temper his unfounded alarmist comments, particularly as the extensive EIS consultation and approvals processes are now completed. Technical experts should contribute to the debate before the political decision. As an academic, he has a privileged position which allows him to investigate specific problems and…

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    1. Permalink
      Ben Heard

      Ben Heard

      Director, ThinkClimate Consulting (logged in via email @thinkclimateconsulting.com.au)

      Oliver, on the point of long-term storage, the appropriate place for Governments to strategically invest is on hastening the commercialisation of Generation IV nuclear power technology, such as the Integral Fast Reactor, which reprocesses and consumes 99% of high level nuclear waste as fuel (including all isotopes of both uranium, plutonium and other actinides) , as well as depleted uranium (which, though it sounds nasty, is a very, very low risk substance which is why it has so many uses). It is not the case that there is no solution to this problem. The technology is proven, demonstrated, and operated successfully in the US for 30 years to the 1990's before closure for political reasons. I recommend you check out the Science Council for Global Initiatives, who are leading the effort to accelerate the restart of this technology. The board includes Dr Charles Till, the guy who basically invented it.

  10. Permalink
    Margaret Beavis

    Margaret Beavis

    Tutor melbourne University, GP (logged in via email @bigpond.net.au)

    More than sixty years after the first reactor was built, we still don't have a long term waste storage anywhere in the world. Transporting the waste is unacceptable.

    Exposure to radiation has a linear effect on cancer risk- natural or not you will have an increased rate of malignancies in areas where there is increased radiation. Just ask the 120,000 people of Chernobyl, who still cannot live where they owned houses 30 years ago due to the health hazard. Similarly there are 80,000 people displaced…

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    1. Permalink
      Ben Heard

      Ben Heard

      Director, ThinkClimate Consulting (logged in via email @thinkclimateconsulting.com.au)

      Hi Margaret,

      You sound a lot like I did a few years ago. I've been there.

      I'm not going to go you point by point, but I have done so in a presentation I deliver explaining why and how I changed my mind. You won't struggle to find it with a visit to Decarbonise SA.

      I will just address the cost argument, however. Baseload energy investments are so large that there is, inevitably, going to be a degree of public sector support, regardless of the technology. Otherwise the private sector simply does…

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    2. Permalink
      Tom Keen

      Tom Keen

      BSc (logged in via email @gmail.com)

      If exposure to radiation has a linear effect on health, why is this not shown in epidemiological studies in different regions with greatly varying natural background radiation? And why do The French Academy of Sciences and the National Academy of Medicine in France reject the linear no-threshold model?

      Try reading: Hooker, A.M., Bhat, M., Day, T.K., Lane, J.M., Swinburne, S., Morley, A.A., & Sykes, P.J., 2004. The linear no-threshold model does not hold for low-dose ionizing radiation. Radiation…

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    3. Permalink
      Tom Keen

      Tom Keen

      BSc (logged in via email @gmail.com)

      Sorry but this is a terrible, uninformed article - one of the worst I've read on this normally solid news site.

      What's this business about rare earths? If it was profitable, they'd be doing it - it's BHP Billiton, remember! And if they were mining for rare earths at Olympic Dam, they'd still have all those "radioactive" tailings to deal with - it's all the same rock. So what's your point?

      Only one passing mention of the desalination plant? This is by far the most ecologically harmful part of the…

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  11. Permalink
    Margaret Beavis

    Margaret Beavis

    Tutor melbourne University, GP (logged in via email @bigpond.net.au)

    It is clear radiation has a linear effect on cancer risk.

    Have a look at "The 15-Country Collaborative Study of Cancer Risk among Radiation Workers in the Nuclear Industry: estimates of radiation-related cancer risks." Cardis ,E. et al. 2007 Radiation Research

    Part of the abstract..
    A 15-Country collaborative cohort study was conducted to provide direct estimates of cancer risk following protracted low doses of ionizing radiation. Analyses included 407,391 nuclear industry workers monitored individually for external radiation and 5.2 million person-years of follow-up. A significant association was seen between radiation dose and all-cause mortality [excess relative risk (ERR) 0.42 per Sv, 90% CI 0.07, 0.79; 18,993 deaths]. This was mainly attributable to a dose-related increase in all cancer mortality (ERR/Sv 0.97, 90% CI 0.28, 1.77; 5233 deaths).

    1. Permalink
      Luke Weston

      Luke Weston

      Physicist / electronic engineer (logged in via email @gmail.com)

      If every single cumulative nanosievert of ionising radiation dose really was responsible for adverse health effects and increased morbidity and mortality, then we would be able to see that increased morbidity and mortality - through careful, well-controlled, quantitative scientific epidemiology - in every single medical radiologist and nuclear medicine technologist, every experimental physicist and every biomedical researcher who uses radionuclides. We would see it in nuclear energy workers who work…

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    2. Permalink
      Mark Duffett

      Mark Duffett

      (logged in via Facebook)

      Quoting Jaworowski on Cardis et al (2007): "This conclusion was based on an ad hoc accepted assumption of a confounding healthy worker effect for the studied cohort. However, the existence of this effect was not supported by their data or by any other factual evidence. This effect could be correctly assumed only if the cancer marker diagnostics (ACS. 2009) and genetic tests were used in pre-employment screening and selection of these workers. But these procedures were not applied in the Cardis…

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  12. Permalink
    Shirley Birney

    Shirley Birney

    retiree (logged in via email @tpg.com.au)

    I’ve been inadvertently re-directed to this thread by Luke Weston’s post which he has duplicated on no fewer than 7 websites:

    “In response to Gavin Mudd’s ridiculous article about the Olympic Dam expansion over on The Conversation, I wrote a lengthy comment in response. It’s posted over there but I will also copy it here for interested readers,” x7.

    Having contributed to (and observed the denial, disinformation, obfuscations and polemics over at “Safe, zero-carbon and proven: is fourth-generation…

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