Commonwealth Numbered Regulations - Explanatory Statements

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NUCLEAR NON-PROLIFERATION (SAFEGUARDS) AMENDMENT REGULATIONS 2003 (NO. 1) 2003 NO. 267

The Nuclear Non-Proliferation (Safeguards) Act 1987 (the Act) gives effect to certain of Australia's obligations under international agreements relating to the peaceful use of nuclear material and facilities, including the Safeguards Agreement between Australia and the International Atomic Energy Agency (IAEA) pursuant to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT), and various bilateral safeguards agreements.

Section 74 of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

Section 3 of the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993 imposes a charge on producers of uranium ore concentrates (the charge) under certain circumstances. Section 69A of the Act specifies that the charge is due on I December each year and that the amount of the charge payable by a producer is $500,000 or an amount prescribed by the regulations, whichever is the lesser. The amount of the charge, expressed in cents per kilogram of uranium in the uranium ore concentrate produced, is set each year in the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (the Principal Regulations).

The Regulations prescribe the amount of charge payable by a producer of uranium ore concentrates as the lesser of $500,000 (the maximum charge, set in the Act) or 6.0453 cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year.

There is a level of cost-recovery involved in setting the rate for calculating the charge. The rate is arrived at according to a formula comparing relevant operating costs of the Australian Safeguards and Non-Proliferation Office (ASNO) with the quantity of uranium exports and uranium produced in Australia. The ASNO operating costs in 2002-03 were similar to those in 2001-02. Taking into account a higher level of production for 2002-03 and the stable operating costs, the rate per kilogram does not need to be as high as for 2001-02. Therefore, the rate for calculating the charge due on 1 December 2003 is reduced from 6.7944 cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year to 6.0453 cents per kilogram.

The Regulations also amend the Principal Regulations to treat all thorium concentrates extracted in Australia equally, regardless of the ore from which they are derived or the intended use.

Part II of the Act sets up a regime to control the possession of nuclear materials in Australia. Paragraph 9 (c) of the Act provides that the regulations may specify nuclear materials to which Part II of the Act does not apply. Paragraph 3(1)(f) of the Principal Regulations exempts thorium concentrates extracted in Australia "for monazite or xenotime" in quantities less than 10 kilograms. Thorium concentrates are extracted from monazite and xenotime ores, and it can be difficult to distinguish the origin, or intended use, of the concentrate. As there is no regulatory reason for specifying the origin or intended use of the concentrate, and to make the regulation more equitable and practical, the Regulations remove the phrase "for monazite or xenotime" from Paragraph 3(1)(f).

Details of the Regulations are attached.

The Regulations commence on gazettal.

0310526A-031008Z

ATTACHMENT

DETAILS OF AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION (SAFEGUARDS) REGULATIONS 1987 (THE REGULATIONS)

Regulation 1 provides that these amendment regulations should be known as the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1).

Regulation 2 provides that the Regulations commence on gazettal.

Regulation 3 provides that Schedule 1 amends the Nuclear Non-Proliferation (Safeguards) Regulations 1987 ("the principal regulations").

Schedule 1

Item [1] provides that within Paragraph 3(1)(f) of the principal regulations, "for monazite or xenotime" be omitted.

Item [2] provides that within Paragraph 6(a) of the principal regulations "6.7944" be omitted and "6.0453" be inserted.