Shane Love and Daniel Pastorelli traded sharp words over whether the taxpayer-funded EIS exploration grants are at odds with the government's ban on uranium development in parliament on Wednesday.
Shadow Mines minister and WA Nationals leader Shane Love was pointing to $217,750 awarded to Cauldron Energy under the state government's Exploration Incentive Scheme, which is designed to stimulate resource exploration, and was doubled to $18 million in the most recent budget.
That funding was awarded to Cauldron in April, although the company was not named at the time; the funding instead came to light through public company disclosures.
That was via two grants, one for up to $78,500 to fund half of a passive seismic geophysics program, and the other for up to $89,250 was designated for an exploration drilling campaign at the Yanrey uranium project 100 km south of Onslow in the Pilbara.
The second came with an additional $50,000 allowance triggered by international cost pressures, bringing the total grant to
"I refer to the Cook Labour government providing taxpayer-funded grants through the exploration incentive scheme to companies exploring for uranium in Western Australia, including Cauldron Energy, while at the same time maintaining its policy ban on the development of new uranium mines," Mr Love began.
"Can the minister explain why his government is using taxpayer money to help discover and define uranium resources which, under his own govenrment's policy, they are prohibited form developing and has the minister met with any uranium exploraiton or mining companies regarding the uranium mining policy, and if so who and when?"
Mr Pastorelli, the newly-minted Minister for Mines, Petroleum and Exploration, said he had met with Cauldron Energy last week.
"The EIS scheme, which I've spoken about in this chamber already, is a fantastic initiative that this state government is right behind. Obviously an important election commitment that we provided at the last election - increasing the funding of the EIS to $18 million per annum, so we're big supporters of the initiative.
"What makes the initiative so good is that the grants are determined by an independent panel of experts, an independent, merit-based, co-funded program administered by the Geological Survey WA, the state's geoscience agency, which sits under my department.
"What's important to note in relation to the EIS is that it's about working with industry to ensure we create a scientific understanding of the geological makeup of our great state. It's important for us to continue to explore the length and breadth of Western Australia when it comes to our minerals that are in the ground.
"We might not mine those minerals, but it's important to know what is there, so that way, future generations can understand the geological makeup of the state long into the future.
"It's important to note that this is not the first time the EIS system has actually granted co-funding for uranium. You might know the Linas project was awarded funding back in November 2020 under this government for exploration of critical minerals and other minerals including uranium.
"So it's not the gotcha moment that I think you were hoping for."
Mr Love then asked whether the funding recently delivered to uranium exploration hinted at the possibility the state government may overturn the "stupid" ban.
"I don't think you listened to the answer. As I said, in November 2020 we provided funding for exploration for another particular project. This project, by Cauldron Energy, is including a whole range of exploration activities which includes uranium. We back the exploration of this state across a whole range of minerals.
"It's important to understand now and into the future what this great state has. We will continue to do this through the EIS system, a project we've backed all the way along."
"What is notable is that that side of the house had no commitment whatsoever when it comes to the exploration scheme here in Western Australia."
The questions come after Australia and India inked a landmark series of energy-based trade agreements in July.
One of these agreements will involve Australia exporting uranium to India for use within its nuclear energy industry.
“Australia’s natural resources are vital for other countries’ energy security and stability, and we look forward to becoming a reliable, trusted supplier of uranium to India,” Mr Albanese said in a joint statement with Climate Change and Energy Minister Chris Bowen.
Currently, only South Australia and the Northern Territory allow uranium mining.
In NSW, a Bill to repeal that state’s current ban has passed the upper house and has been presented to the lower house for debate.
It led to calls for a similar move to overturn the ban in WA, including from the Chamber of Commerce and Industry of Western Australia, whose chief executive, Will Golsby, said WA had an opportunity to play a key role in the deal.
“As countries all over the world look to nuclear energy to decarbonise their economies, there is a real opportunity for WA to become a key supplier of uranium,” he said.
“Other states have been able to capitalise on this demand, but WA has missed out despite having some of the largest uranium deposits in the country.
“This deal with India is great news for SA and the NT, but sadly the benefit will bypass WA unless there’s change.”
Imposed in 2002 under Geoff Gallop’s Labor government, WA’s uranium mining ban was lifted in 2008 following the Coalition’s election victory under Colin Barnett, who described the ban at the time as “nonsensical”.
Labor returned to power in 2017 under Mark McGowan, who reinstated the ban in line with the party’s pre-election promise. No new uranium mining leases have been approved since.
Four grandfathered uranium projects with existing state ministerial approval were allowed to progress in 2017: Mulga Rock (Deep Yellow), Kintyre and Yeelirrie (Cameco Australia), and Wiluna (Toro Energy, since acquired by IsoEnergy).
In 2022, environmental approvals for Kintyre, Yeelirrie and Wiluna lapsed, leaving only Mulga Rock to progress further.
When asked by Business News whether the federal government had reached out to WA Labor since the announcement, and whether the state might consider overturning the uranium mining ban, a spokesperson for Mr Pastorelli's office said the details of arrangements made by the Indian and Australian governments were a matter for those governments.
“Uranium mining is banned in WA and the state government has no plans to change its existing and longstanding policy,” they said.
“In 2017, the elected WA Labor government delivered on its election commitment to ban uranium mining while honouring existing approvals granted in 2016.
“Importantly, no project has proceeded, which highlights the realities of the uranium market over the past 10 years.”
Both WA opposition leader Basil Zempilas and Nationals WA leader Shane Love have publicly stated that a Coalition government would remove the uranium mining ban if Labor was defeated at the 2028 poll.
