South Australian uranium miners welcome opposition leader’s nuclear energy support

South Australia’s potential to become the front runner for the introduction of nuclear energy in the nation has firmed with the state’s opposition leader David Speirs highlighting its benefits in Parliament.

In his State Budget reply speech, Mr Speirs said governments need to keep an open mind with regard to all energy solutions available in Australia, including nuclear power.

“It may very well be that consideration of nuclear energy in some form, likely small modular reactors, will be necessary.”

“Perhaps it’s time to reopen that Royal Commission – have a Royal Commission 2.0 – and start thinking about what South Australia’s role could be in that fuel cycle, some seven years since we last considered it.”

In 2015, a Royal Commission was conducted into South Australia’s future role in the Nuclear Fuel Cycle.

The Commission, led by former South Australian Governor Kevin Scarce, delivered its final report in May 2016 and recommended that the South Australian Government “pursue removal at the federal level of existing prohibitions on nuclear power generation to allow it to contribute to a low-carbon electricity system, if required.”

Positive news welcomed

Welcoming the positive development, the South Australian Chamber of Mines & Energy (SACOME) said that since the commission, no Government in South Australia has pursued this recommendation.

SACOME chief executive officer, Rebecca Knol, said the comments from the opposition leader were welcomed and timely given the State continues to grapple with escalating electricity prices and a huge energy transition challenge, despite unparalleled renewables penetration.

“Nuclear is a safe, reliable and affordable energy source, capable of generating baseload power with zero emissions,” Ms Knol said.

“Coupling modern small modular reactor (SMR) technology, with the state’s abundant uranium, natural gas and renewable energy sources, would facilitate rapid decarbonisation and ensure South Australians have access to dependable and affordable power.”

“The findings from the Royal Commission still stand today. The Government needs to act in pursuit of overturning the Federal prohibition to enable it to be explored as part of our future energy mix if we are to protect manufacturing and jobs.”

No new energy plans in place

While SACOME has consistently called for an Energy Transition Plan, Ms Knol said seven years into the energy transition, South Australia remains without a plan and has the highest electricity prices in the nation.

“Australia is the only G20 nation that is not using or considering nuclear energy due to a Federal legislative prohibition. South Australia hosts 25% of the world’s uranium which we export around the world, enabling other countries to meet their decarbonisation targets, just not our own.”

“An amendment to the Federal Environment Protection and Biodiversity Conservation Act 1999 – the removal of four words ‘a nuclear power plant’ – would allow industry to explore nuclear as part of South Australia’s energy mix.”

Ms Knol called for a bipartisan support to enable fact-based policy development on nuclear energy.

“We already have bipartisan support for nuclear powered submarines and uranium mining in our State. We now need bipartisan support for nuclear power to deliver a Net Zero future, reduce energy prices and maintain South Australian manufacturing and jobs.”

Community sentiment positive

In 2022, SACOME commissioned a community sentiment survey of 600 South Australians to evaluate the views of the public and see if they were open to a balanced conversation on nuclear energy.

The survey found that 75% of South Australians support having an “informed and balanced conversation about having a nuclear energy industry in South Australia.”

58% of respondents also support progressing the necessary political conversations and legislative frameworks to enable future nuclear energy use in South Australia, while more than 6 in 10 adults agree that given recent cost and reliability issues of the Australian electricity market, all energy sources, including nuclear, should be on the table for consideration.

Boss Energy would be a winner

Local uranium firm Boss Energy (ASX: BOE) is one company that would certainly benefit from a change of government policy.

The company confirmed today that it is on target to restart production at the Honeymoon uranium project in South Australia by year end.

The company is celebrating the completion of the first wellfield as it also nears completion on related gypsum pond and water treatment plants.

Managing director Duncan Craib said completion of this milestone ensures Honeymoon remains on track for production in the December quarter, 2023.