Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (No. 1) 2004 No. 323
EXPLANATORY STATEMENT
Statutory Rules 2004 No. 323
Issued by the Authority of the Minister for Foreign Affairs
Nuclear Non-Proliferation (Safeguards) Act 1987
Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (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, in part, 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 1 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 5.8192 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 2003-04 were similar to those in 2002-03. Taking into account a slightly higher level of production for 2003-04 and the stable operating costs, the rate per kilogram does not need to be as high as for 2003-04. Therefore, the rate for calculating the charge due on 1 December 2004 is reduced from 6.0453 cents per kilogram of uranium in the uranium ore concentrates produced by the producer in the previous financial year to 5.8192 cents per kilogram.
Details of the Regulations are attached.
The Regulations commenced on the date of their notification in the Gazette.
ATTACHMENT
DETAILS OF AMENDMENTS TO THE NUCLEAR NON-PROLIFERATION (SAFEGUARDS) REGULATIONS 1987
Regulation 1 provides that these amendment regulations should be known as the Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (No. 1).
Regulation 2 provides that the Regulations commence on the date of their notification in the Gazette.
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 6(a) of the Principal Regulations "6.0453" be omitted and "5.8192" be inserted.
Overview
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (No. 1) were enacted to address the need for adjustments in the financial obligations of producers of uranium ore concentrates under the Nuclear Non-Proliferation (Safeguards) Act 1987. These Regulations, issued under the authority of the Minister for Foreign Affairs, aim to ensure that Australia continues to meet its international commitments regarding the peaceful use of nuclear materials and facilities, as outlined in agreements such as the Safeguards Agreement with the International Atomic Energy Agency under the Treaty on the Non-Proliferation of Nuclear Weapons. The principal objective of these Regulations is to align the financial charge imposed on uranium ore concentrate producers with the operational costs of the Australian Safeguards and Non-Proliferation Office, reflecting the economic circumstances and production levels of the preceding financial year. This amendment reduces the charge rate from 6.0453 cents to 5.8192 cents per kilogram of uranium in the uranium ore concentrates produced, thereby maintaining a balance between cost recovery and the economic burden on producers.
Scope and Application
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (No. 1) are subordinate legislation made under the Nuclear Non-Proliferation (Safeguards) Act 1987. This Act gives effect to 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 pursuant to the Treaty on the Non-Proliferation of Nuclear Weapons. The regulations apply to producers of uranium ore concentrates and are designed to implement the charge imposed under the Nuclear Safeguards (Producers of Uranium Ore Concentrates) Charge Act 1993. The Act applies nationally, aligning with Australia's international commitments and domestic obligations concerning nuclear non-proliferation. The amendment reduces the charge rate for uranium ore concentrates from 6.0453 cents to 5.8192 cents per kilogram, reflecting stable operating costs of the Australian Safeguards and Non-Proliferation Office and slightly higher production levels. These Regulations, effective from their notification in the Gazette, modify the Nuclear Non-Proliferation (Safeguards) Regulations 1987, ensuring the charge amount remains within prescribed limits.
Key Provisions
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2004 (No. 1) introduce changes to the Nuclear Non-Proliferation (Safeguards) Regulations 1987, particularly adjusting the charge rate for producers of uranium ore concentrates (Regulation 3, Schedule 1, Item [1]). These regulations are essential for ensuring that Australia complies with its international obligations under various nuclear non-proliferation agreements, such as the Safeguards Agreement with the International Atomic Energy Agency (IAEA) and the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). The primary operative section, Section 74 of the Act, empowers the Governor-General to create these regulations, ensuring they align with the Act and are necessary for its implementation.
Under these regulations, the charge for uranium ore concentrates is now set at the lesser of $500,000 or 5.8192 cents per kilogram of uranium produced by the producer in the previous financial year. This adjustment reflects a cost-recovery mechanism based on the operating costs of the Australian Safeguards and Non-Proliferation Office (ASNO) relative to the volume of uranium exports and production in Australia (Section 69A of the Act). The new rate, 5.8192 cents per kilogram, takes into account stable ASNO operating costs and a slight increase in uranium production for the 2003-04 financial year.
These regulations impose specific obligations on producers of uranium ore concentrates, mandating them to pay the prescribed charge by 1 December each year. The charge calculation requires producers to report the quantity of uranium ore concentrates produced in the previous financial year. Furthermore, the regulations necessitate accurate record-keeping to ensure compliance with the specified charge amount. Non-compliance with these obligations can result in penalties and legal consequences as outlined in the Act.
Breach of the obligations under these regulations can lead to civil and criminal penalties. The Act provides for penalties for non-payment of the charge, which may include fines and potential legal action. The precise penalties are not detailed in the explanatory statement, but they are governed by the broader legislative framework established by the Nuclear Non-Proliferation (Safeguards) Act 1987. Enforcement actions can be pursued against entities that fail to comply with the charge requirements, reinforcing the importance of adhering to these regulations to uphold Australia's commitments to international nuclear non-proliferation agreements.