Former Rio Tinto Executive for Uranium Mine Leadership: Environmentalists’ Crit- icize and Concern

Former Rio Tinto Executive for Uranium Mine Leadership

Environmentalists’ Criticize and Concern

A former Rio Tinto senior executive who stepped down following the devastation of Juukan Gorge has been named to the proposed leadership team that would oversee the development of a contentious uranium mine in Western Australia.

Chris Salisbury, the former Rio Tinto iron ore boss, was one of three senior executives to resign after the destruction of the 46,000-year-old sacred site on his watch.

In May 2021, Mr. Salisbury was named the uranium exploration company Deep Yellow chair. He was recently named the proposed chair of a $658 million merger between the company and Vimy Resources. Vimy is developing WA's first uranium mine in the Goldfields region, 240 kilometers northeast of Kalgoorlie-Boulder.

Vimy's board has agreed to a beefed-up plan and will take the merger to shareholders in June after rejecting a $317 million offer from rival Deep Yellow, which is developing a uranium mine in Namibia.

The merger is expected to provide the necessary financial backing to complete the Mulga Rock uranium project. Uranium mining is prohibited in Western Australia following the reinstatement of a prohibition by the current Labor government in 2017.

However, the old Liberal-National government awarded environmental approval to the Mulga Rock mine, as well as three other projects, prior to the prohibition, which Labor claimed it would accept.

Mulga Rock is the sole project that is progressing. The deal would not stymie Mulga Rock's progress, according to Vimy Resources managing director Steven Michael, who claimed the business plans to start production in 2025.

CONCERNS ABOUT LEADERSHIP

Deep Yellow's managing director, John Borshoff, is the proposed chief executive of the amalgamated business, according to Australian Conservation Foundation nuclear policy specialist Dave Sweeney. Limited or its associates, he noted governance difficulties with projects in Malawi and Namibia.

One worker lost his life, and two others got injured at a mine in Malawi in 2013, another worker died, and two others were hurt in a mine in Namibia in 2013. A vehicle transporting uranium oxide from a Malawi mine toppled in 2014, releasing some of the substance.

Mr. Sweeney was also concerned about Mr. Salisbury's appointment as chairman because of his involvement in the devastation of Juukan Gorge.

"Neither of those, we believe, are a basis for confidence or leadership of a corporation suited for purpose in a high-risk industrial area like uranium mining," he said. Mr. Michael, on the other hand, claimed the Deep Yellow duo provided "great value to the amalgamated group" because of their combined uranium experience.

SPECIAL FOCUS

Chris Salisbury.

Mr. Michael stated, "We did considerable due diligence on Deep Yellow and met with their board of management on multiple occasions."

ENVIRONMENTAL GOVERNANCE IS A PRIORITY

Mr. Borshoff issued a statement, calling the Juukan Gorge tragedy a "terrible disaster" that underscored the need for heritage management, community interactions, and environmental and social governance (ESG). "Investigations revealed that the Juukan George event was caused by systemic difficulties at Rio rather than individual actions," Mr. Borshoff added. "Chris's knowledge of the issues that gave rise to Juukan will ensure Deep Yellow builds these learnings into heritage management." Community relations and ESG are at the forefront of all Deep Yellow strategic decisions, and we see ourselves as a sector leader when it comes to driving positive change and impact in the communities we operate in.

Mr. Borshoff also recognized the "huge responsibility" that comes with establishing Western Australia's first uranium mine. "Starting a new uranium mine like Mulga Rock carries risks," he said, citing the need for managerial experience to resolve technical, construction, and commissioning challenges, as well as community engagement, environmental, and government permissions.

THOUSANDS OF US DIED!

The proposed uranium mining location in WA's central desert is the subject of a native title claim. Debbie Carmody, a claimant for Upurli Upurli Nguratja Native Title, claimed Vimy had not visited the group since the petition was filed in 2020. "We're afraid that the work they've done there is causing damage to our cultural heritage," she stated.

"It actually damages critical habitat for the endangered sandhill dunnart, and we're concerned about the long-term effects of radioactive tailings," said the group. Even though the mine would only provide uranium for nuclear energy, Ms. Carmody said the group did not want the project to go through because of family ties to the terrible past of British nuclear experiments at Maralinga, which exposed 1,200 Aboriginal people to radiation.

"Because we were unable to return to our homeland, our people became refugees within their own territory," she explained. "Thousands of people perished as a result of radiation exposure, including my grandmother and uncle. Because the claim was filed in 2020, after the tenement was approved, Vimy is under no legal obligation to meet with the group. Mr. Michael, on the other hand, said Vimy had made contact with Upurli Upurli Nguratja's legal counsel and attempted to meet with the group.

WHERE DOES URANIUM FROM AUSTRALIA END UP?

While nuclear energy is prohibited in Australia, two working mines export

7,000 tons of uranium each year, accounting for 10% of the global market. The Mulga Rock mine is estimated to generate 1,500 tons of gold each year, worth $300 million.

"Approximately half of our uranium goes to the United States, and about a quarter goes to north Asia, including Japan – albeit less so since Fukushima – Korea, and Taiwan," Mr. Sweeney said. "The remaining 25% or so goes to the European Union and the United Kingdom." Mr. Sweeney stated that Australia only exports uranium to countries for use as an energy source, which was critical because uranium is a "weapon-sensitive fuel."

He explained, "It can power a nuclear reactor, but it can also be enriched and concentrated and used to power a nuclear bomb." Mr. Michael said that while the firm had no control over what a facility did with uranium once it left Australia, there were strong controls for the use of nuclear fuel in the countries where they planned to export, such as North America, Western Europe, and Japan, were in place.

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