EXPLANATORY STATEMENT
Select Legislative Instrument 2011 No. 211
Issued by the Authority of the Minister for Foreign Affairs
Nuclear Non-Proliferation (Safeguards) Act 1987
Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2011 (No. 1)
Section 74 of the Nuclear Non-Proliferation (Safeguards) Act 1987 (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. In addition section 70 of the Act provides that powers, discretions, duties or functions under the Act are to be exercised in accordance with specified international agreements identified in the Act, or prescribed in regulations.
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 in the Nuclear Non-Proliferation (Safeguards) Regulations 1987 (the Principal Regulations).
The Regulations prescribe to the Principal Regulations the amount of charge payable by a producer of uranium ore concentrates as the lesser of $500,000 or 10.3077 cents per kilogram of uranium in the uranium ore concentrates produced 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 by apportioning Australian Safeguards and Non-Proliferation Office general expenses to work categories related to uranium mining and export.
The then Office of Regulation Review (ORR) advised in 2006 that a Regulation Impact Statement (RIS) is not mandatory, as the direct effect on business is minor in nature, therefore an exception applies. ORR also advised that subsequent amendments to the charge per kilogram to uranium producers will not require a RIS. Also, uranium producers have been consulted of the increase to the uranium producers charge in 2011 and were provided with an opportunity to comment.
Details of the Regulations are attached.
The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.
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 2011 (No. 1).
Regulation 2 provides that the Regulations commence on the day after they are registered on the Federal Register of Legislative Instruments.
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 “9.4893” be omitted and “10.3077” be inserted.
Overview
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2011 (No. 1) were enacted to adjust the charge on producers of uranium ore concentrates as outlined in the Nuclear Non-Proliferation (Safeguards) Act 1987. This Act was established to ensure Australia's compliance with international obligations regarding nuclear non-proliferation and to safeguard nuclear materials. The 2011 Amendment Regulations were introduced to address the need for updating the charge rate, which is meant to reflect the costs associated with the regulation and monitoring of uranium production and export. The enacting body, pursuant to section 74 of the Act, was the Governor-General, and the policy objective was to maintain an effective and efficient cost-recovery mechanism that aligns with the administrative expenses of the Australian Safeguards and Non-Proliferation Office. The Office of Regulation Review determined that a Regulation Impact Statement was not necessary for these amendments due to their minor impact on businesses.
Scope and Application
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2011 (No. 1) apply to entities involved in the production of uranium ore concentrates in Australia, specifically targeting those who are subject to the charge imposed under the Nuclear Non-Proliferation (Safeguards) Act 1987. The primary purpose of these regulations is to adjust the amount of the charge payable by producers of uranium ore concentrates, ensuring that it remains within a specified limit. The regulations operate on a national level, aligning with the overarching framework established by the Act and relevant international agreements. The Act itself extends to the whole of Australia, encompassing the Commonwealth, states, territories, and external territories, reflecting its national scope. The regulations set a charge per kilogram of uranium in the uranium ore concentrates produced, with the amount being the lesser of $500,000 or 10.3077 cents per kilogram. This amendment, which replaces the previous rate of 9.4893 cents per kilogram, is intended to facilitate cost recovery by the Australian Safeguards and Non-Proliferation Office and is based on apportioning general expenses to work categories related to uranium mining and export. The regulations do not apply to any specific exclusions or exemptions beyond what is specified in the Nuclear Non-Proliferation (Safeguards) Act 1987.
Key Provisions
The Nuclear Non-Proliferation (Safeguards) Amendment Regulations 2011 (No. 1) amend the Nuclear Non-Proliferation (Safeguards) Regulations 1987, setting forth specific requirements and obligations for producers of uranium ore concentrates under Australian legislation (Regulation 3, Schedule 1, Item [1]). These regulations specifically adjust the rate of the charge imposed on uranium ore concentrate producers, as mandated by section 69A of the Nuclear Non-Proliferation (Safeguards) Act 1987. The new charge rate is set at 10.3077 cents per kilogram of uranium in the uranium ore concentrates produced in the previous financial year (Schedule 1, Item [1]).
Under these regulations, producers of uranium ore concentrates are obligated to calculate their charge based on the lesser of either $500,000 or the amount derived from the new charge rate applied to the quantity of uranium ore concentrate produced (Schedule 1, Item [1]). This charge is due on 1 December each year and is intended to ensure cost recovery for the activities of the Australian Safeguards and Non-Proliferation Office, which oversees the safeguards related to nuclear non-proliferation. The regulations require that the charge be paid by the specified date to comply with the legislative framework (Section 69A).
Failure to comply with the requirements of these regulations, including the timely payment of the charge, may result in legal consequences. While the specific penalties for non-compliance are not detailed in the explanatory statement, it can be inferred that breaches of the Nuclear Non-Proliferation (Safeguards) Act 1987 and its associated regulations could lead to enforcement actions, including fines or other penalties as prescribed by law. The exact penalties would be determined in accordance with the broader legislative framework governing the Act.