ABORIGINALlandowners are set to secure equity involvement in development of theKintyre uranium deposit in Western Australia after its sale by RioTinto to Canada's Cameco and Japan's Mitsubishi Development in aground-breaking deal worth $US495 million ($A515 million).
Kintyre is one of the world's biggest undeveloped uranium deposits(80 million pounds of uranium now worth $4.8 billion in its finishedform) but its development has been held up by WA's continuing ban onuranium mine developments.
But the traditional landowners, the Martu people, will join the new owners to pressure the WA Labor Government to lift the ban.
"We would hope that if the Martu supported any potential developmentinvolving Martu equity ownership to improve their economic position, itwould be strongly considered by the WA Government in the future," theMartu said yesterday.
It was not lost on Cameco, the world's biggest uranium miner, thatwhile the Labor Government in WA allows uranium exploration, itcontinues to oppose uranium mine developments.
"However, Australian governments and political parties generally arebecoming more supportive of uranium development," the Canadian groupsaid, noting that the federal Australian Labor Party abandoned its banon new uranium mines in 2007.
Financial details on the full nature of the deal struck by the Martuon the sale of Kintyre to Cameco (70% and operator) and Mitsubishi(30%) were not disclosed.
But it is believed to include a mix of equity — possibly up to 20% — and payment of royalties and up-front cash.
The deal represents a new breed of hard-nosed commercialarrangements between traditional owners and the mining industry, ratherthan the lower-cost cultural "support" programs of the past.
Uranium is enjoying a resurgence of interest because of thepotential for zero carbon emission nuclear power to provide a lastingsolution to global warming concerns.
Uranium prices have halved in the past year after reaching a record$US138 a pound. But the current price of $US60 a pound is still asixfold increase on the $US10 a pound price in 2002-03.
The Cameco/Mitsubishi partnership said it would "begin workingtowards a mine development agreement with the Martu" followingsettlement of the Rio deal next month.
The Western Desert Lands Aboriginal Corporation (WDLAC), which actson behalf of the Martu people, praised Rio for its handling of thesale. Chairman Teddy Biljabu and chief executive Clinton Wolf and Martuowners Lynn Dunn and Billy Landy said they were "very happy with theconduct" of Rio.
"We are satisfied with the level of our involvement and we lookforward to sitting down with the new consortium to discuss the best wayforward for the project," they said. Adviser to the Martu and principalof Indigenous Energy, Joe Procter, said that while the Rio salesprocess had got off to a bumpy start, Rio had "shown itself to be aleader and innovator by including the Martu in the sales process".
The sale by Rio is part of its plan to raise $US10 billion fromasset sales this year to reduce debt after last year's acquisition ofaluminium group Alcan.