A remote mountain full of uranium remains one of the hottest political spots in the state, despite an unprecedented and comprehensive apology last Friday by Marathon Resources.
Marathon is the Adelaide-based junior explorer that has been drilling at Mt Gee, in the Arkaroola wilderness and eco-tourism sanctuary. It has estimated that the mountain contains at least 2700 tonnes of uranium. At current prices that would be worth approximately $445 million. But the inferred resource, which it hopes to confirm by further drilling, is 10 times as great.
However, the government ordered it to suspend drilling indefinitely in February, after it was discovered that the company had breached its licence conditions by burying drill samples and general waste on site in plastic bags and steel drums.
The state’s shadow resources minister, David Ridgway, says: “The government now has to come clean on whether or not they are ever going to allow them to mine”.
PIRSA’s director of mineral resources, Dr Ted Tyne, says the suspension of drilling activity “remains in place” and notes that “an exploration licence does not in any way grant permission to undertake mining activities”.
Greens MLC Mark Parnell is to visit the area in the next couple of weeks and will put the issue back on the political agenda by introducing a Bill, probably before the end of September, which would ban all mining in the sanctuary.
Ridgway says the Opposition’s view is that mining needs to be considered on a case-by-case basis.
He says he would probably have no problem with exploring there for gas or even oil, but admits that if he were minister, uranium mining at Mt Gee would be a difficult decision.
After almost six months, the Department of Primary Industries and Resources (PIRSA) last week approved a detailed clean-up plan by the company. Marathon and PIRSA officials held a preliminary meeting this week to begin the process.
Marathon expects it to take up to 11 weeks, including final approvals. It will be closely supervised by staff from the department, from the Environment Protection Agency, and an independent environmental expert.
Also formally included in the supervision team are the Arkaroola pastoral leaseholders, Marg and Doug Sprigg, who run the Arkaroola resort, and who are strongly opposed to any mining in the area.
In a letter to shareholders and even in a televised address to the world on the internet, Marathon’s chairman, Peter Williams, last week apologised for Marathon’s earlier behaviour at Mt Gee. He released the company’s review of the affair, acknowledging that it had failed in four significant areas, and setting out the steps it had taken throughout the company to prevent any repetition.
The company is not yet at the stage of preparing a pre-feasibility study or an environmental impact statement. It has ruled out any open-cut mining, and decided against drawing water from the great artesian basin, but has yet to decide how to provide the water that would be need for any mining operation.