Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1) 2003 No. 267
EXPLANATORY STATEMENT
Statutory Rules 2003 No. 267
Issued by the Authority of the Minister for Foreign Affairs
Nuclear Non-Proliferation (Safeguards) Act 1987
Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1)
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.
Overview
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1) were enacted to address certain administrative and operational aspects of the Nuclear Non-Proliferation (Safeguards) Act 1987. This Act implements Australia's obligations under various international agreements, including the Safeguards Agreement with the International Atomic Energy Agency under the Treaty on the Non-Proliferation of Nuclear Weapons. The Regulations were made under the authority of the Minister for Foreign Affairs to ensure compliance with these international commitments and to streamline the regulatory framework concerning the management and oversight of nuclear materials. The policy objective of these amendments is to refine the regulatory approach to the charge on uranium ore concentrates and to simplify the treatment of thorium concentrates, ensuring a more equitable and practical application of the safeguards regime.
Scope and Application
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1) serve to amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987 in order to meet Australia's obligations under international agreements relating to the peaceful use of nuclear material and facilities, including the Safeguards Agreement with the International Atomic Energy Agency under the Treaty on the Non-Proliferation of Nuclear Weapons. These Regulations apply to entities involved in the production of uranium ore concentrates in Australia, as well as to any thorium concentrates extracted in the country, irrespective of their intended use or the ore from which they are derived. The Regulations operate within the jurisdiction of the Commonwealth of Australia and are designed to ensure compliance with international safeguards and promote the peaceful use of nuclear energy. The Regulations set out the amount of charge payable by producers of uranium ore concentrates, which is the lesser of $500,000 or 6.0453 cents per kilogram of uranium in the uranium ore concentrates produced in the previous financial year. Additionally, the Regulations amend the Principal Regulations to remove distinctions regarding the origin or intended use of thorium concentrates, thereby treating all such concentrates extracted in Australia equally, regardless of their source or purpose. The Regulations commence on gazettal and extend the application of the Nuclear Non-Proliferation (Safeguards) Act 1987 through subordinate instruments.
Key Provisions
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2003 (No. 1) (the Regulations) amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (the Principal Regulations) under section 74 of the Nuclear Non-Proliferation (Safeguards) Act 1987. The Regulations establish the amount of the charge payable by producers of uranium ore concentrates and modify the definition of thorium concentrates extracted in Australia. Section 69A of the Act specifies that the charge is due on 1 December each year, and the amount payable by a producer is set as the lesser of $500,000 or a rate prescribed by the regulations, expressed in cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year. The Regulations prescribe the amount of the charge payable by a producer as the lesser of $500,000 or 6.0453 cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year. This change reflects a level of cost-recovery, considering the operating costs of the Australian Safeguards and Non-Proliferation Office (ASNO) and the quantity of uranium exports and uranium produced in Australia.
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. Previously, Paragraph 3(1)(f) of the Principal Regulations exempted thorium concentrates extracted in Australia "for monazite or xenotime" in quantities less than 10 kilograms. The Regulations remove the phrase "for monazite or xenotime" from Paragraph 3(1)(f), simplifying the regulation and making it more equitable and practical.
Entities governed by the Regulations, particularly producers of uranium ore concentrates, must adhere to the prescribed charge rates and ensure compliance with the specified charge due on 1 December each year. This obligation entails calculating the charge based on the lesser of $500,000 or the rate prescribed by the Regulations, which is 6.0453 cents per kilogram of uranium in the uranium ore concentrates produced in the previous financial year. Producers must also be aware of the changes concerning thorium concentrates, ensuring that all such concentrates extracted in Australia are treated equally, irrespective of their origin or intended use.
Failure to comply with the charge obligations or the amended definitions within the Regulations may result in financial penalties and other legal consequences. While the Regulations do not explicitly state penalties for non-compliance, breaches of the Nuclear Non-Proliferation (Safeguards) Act 1987 or related regulations can lead to significant fines and other legal actions. The penalties for offences under the Act can be severe, including substantial fines and imprisonment, depending on the nature and severity of the breach.