Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2) 2002 No. 252
EXPLANATORY STATEMENT
Statutory Rules 2002 No. 252
Issued by the Authority of the Minister for Foreign Affairs
Nuclear Non-Proliferation (Safeguards) Act 1987
Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2)
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 due on 1 December each year. The Act specifies the amount of this charge payable by these producers. The amount, charged per kilogram of uranium produced by each producer, is prescribed in the regulations each year.
The amount calculated to be due, for each person paying the charge, on 1 December 2002 is 6.7944 cents per kilogram of uranium in the uranium ore concentrates produced by the person in the previous financial year, taking account of the level of production for 2001-2002 relative to the Australian Safeguards and Non-Proliferation Office's operating costs. The Act sets a maximum limit of $500,000 on the charge.
The Regulations prescribe the amount of charge payable by a producer of uranium ore concentrates as the lesser of 6.7944 cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year or $500,000.
The Regulations also amend the Principal Regulations to provide that depleted uranium in nonnuclear use is covered by Part II of the Act, which relates to control of nuclear material and associated items.
Paragraph 9 (c) of the Act provides that regulations may specify nuclear materials to which Part II of the Act does not apply. In 1990 the control of depleted uranium in non-nuclear use was deregulated, as it was determined that control of this material was not required to meet Australia's commitments under the Agreement between Australia and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Treaty on the Non-proliferation of Nuclear Weapon (the Agency Agreement).
Since then, the international safeguards system has been strengthened and the IAEA now requires additional nuclear material tracking. In particular, new reporting requirements arise from the Protocol Additional to the Agency Agreement (effective 10 December 1997), including with respect to depleted uranium in non-nuclear use. This necessitates the reapplication of Part II of the Act to such material. To address this, Regulation 3 of the Nuclear Non-Proliferation (Safeguards) Regulations are amended to omit items (1) (g) (i) and (1) (g) (ii).
Details of the Regulations are attached.
The Regulations commence on gazettal.
ATTACHMENT
DETAILS OF AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION (SAFEGUARDS) REGULATIONS 2002 (THE REGULATIONS)
Regulation 1 provides that these amendment regulations should be known as the Nuclear NonProliferation (Safeguards) Amendment Regulations 2002 (No. 2).
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 Paragraph 3(1)(f)of the principal regulations be amended such that it becomes the last point in Paragraph 3(1).
Item [2] provides that Paragraph 3(1)(g) of the principal regulations be omitted.
Item [3] provides that in Paragraph 6(a) of the principal regulations 5.7433 be omitted and 6.7944 be inserted.
Overview
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2) were enacted to address the evolving international safeguards requirements under the Agreement between Australia and the International Atomic Energy Agency (IAEA) for the Application of Safeguards in Connection with the Treaty on the Non-Proliferation of Nuclear Weapons, as well as the Protocol Additional to the Agency Agreement. These regulations were issued by the Minister for Foreign Affairs under the authority granted by the Nuclear Non-Proliferation (Safeguards) Act 1987. The primary policy objective of these regulations is to ensure that Australia complies with its international obligations regarding the control and monitoring of nuclear materials, including the reapplication of safeguards to depleted uranium in non-nuclear use. This amendment reflects the updated need for additional nuclear material tracking as required by the IAEA, thereby aligning Australia's regulatory framework with international standards and commitments.
Scope and Application
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2) amends the Nuclear Non-Proliferation (Safeguards) Regulations 1987 to ensure Australia meets its international obligations under the Treaty on the Non-Proliferation of Nuclear Weapons and the International Atomic Energy Agency's (IAEA) safeguards agreements. Specifically, these regulations address the amount of charge payable by producers of uranium ore concentrates, adjusting it to 6.7944 cents per kilogram or a maximum of $500,000, reflecting the operating costs of the Australian Safeguards and Non-Proliferation Office. Furthermore, these regulations reintroduce control over depleted uranium used in non-nuclear applications under Part II of the Act, responding to new IAEA requirements for nuclear material tracking and reporting. This amendment reverses a 1990 deregulation decision, ensuring compliance with the Protocol Additional to the Agreement between Australia and the IAEA for the Application of Safeguards. The regulations commence upon gazettal, applying nationally and to entities engaged in the production and use of uranium ore concentrates and related materials.
Key Provisions
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2) amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (referred to as the Principal Regulations). Regulation 1 (2) names these amendments as the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2002 (No. 2). Regulation 2 (3) states that these regulations commence upon gazettal, meaning they come into force as soon as they are published in the Commonwealth Gazette. Regulation 3 (4) details specific changes to the Principal Regulations.
Under the Nuclear Non-Proliferation (Safeguards) Act 1987 (the Act), producers of uranium ore concentrates are subject to an annual charge. Section 3 of the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993 stipulates that the charge applies to producers of uranium ore concentrates, with the Act itself determining the charge's amount. The Regulations prescribe the charge payable by these producers as 6.7944 cents per kilogram of uranium in the uranium ore concentrates produced by them in the previous financial year, not exceeding $500,000. This charge is designed to cover the operating costs of the Australian Safeguards and Non-Proliferation Office.
The Regulations also address the control of nuclear material, specifically depleted uranium in non-nuclear use. Originally deregulated in 1990, the control of this material was reconsidered due to strengthened international safeguards and reporting requirements, particularly under the Protocol Additional to the Agency Agreement. Regulation 3 amends the Principal Regulations to reinstate the application of Part II of the Act to depleted uranium in non-nuclear use, ensuring compliance with these new international obligations.
Breaches of the Nuclear Non-Proliferation (Safeguards) Regulations 2002 (No. 2) can lead to civil and criminal consequences. The Act provides for penalties for non-compliance with the regulations. For instance, failure to pay the prescribed charge on time or underpaying can result in financial penalties, while significant non-compliance may lead to criminal charges. The maximum penalties can include fines and imprisonment, depending on the severity and intent of the breach. The precise penalties are outlined in the Act but are generally intended to enforce compliance with Australia's international non-proliferation commitments.