The story behind the corporation that owns the Beverley uranium mine in north-east South Australia is scarcely believable.
Heathgate Resources − a 100 per cent-owned subsidiary of General Atomics (GA) − owns and operates Beverley and has a stake in the adjacent Beverley Four Mile mine. Over the years GA CEO Neal Blue has had commercial interests in oil, Predator drones, uranium mining and nuclear reactors, cocoa, bananas and real estate.
Radioactive spills and gas leaks at a uranium processing plant in Oklahoma led to the plants closure in 1993. The plant was owned by a GA subsidiary, Sequoyah Fuels Corporation, and processed uranium for use in reactors and for use in depleted uranium munitions. A nine-legged frog may have GA to thank for its dexterity.
A government inquiry found that GA had known for years that radioactive material was leaking and that the radioactivity of water around the plant was 35,000 times higher than US laws permitted.
In 1992, a leak at the Oklahoma plant forced the evacuation of a building only two weeks after federal inspectors allowed it to resume operating.
Later that year, the company announced that the plant would be closed after it had been ordered to temporarily shut down three times in the previous six years.
The shenanigans at the Oklahoma plant − documented by the World Information Service on Energy − include the disposal of low-level radioactive waste by spraying it on company-owned grazing land, and the company’s attempt to reduce the amount of property tax it paid on the grounds that radioactive contamination reduced the value of the land.
Fortune Magazine recounts one of the controversies surrounding GA / Heathgate’s uranium ventures in Australia. When uranium prices increased in the mid-noughties, the company was locked into long-term contracts to sell yellowcake from Beverley at earlier, lower prices.
Heathgate devised plans to renegotiate its legally-binding contracts. Customers were told that production costs at Beverley were higher than expected, that production was lower than expected, and that a failure to renegotiate contracts would force Heathgate to file for bankruptcy.
However former employees said that Blue had allegedly directed Heathgate to increase its production costs. Customers were not told that bankruptcy was unlikely since GA had agreed to continue providing Heathgate with financial assistance.
Two of Heathgate’s Australian directors consulted an attorney who advised them that the plan could be considered a conspiracy to defraud. They left the company.
Exelon, one of Heathgate’s uranium customers, sued. The lawsuit was settled for about $41 million. Because of the increased uranium price, Blue ended up well in front despite the cost of the settlement with Exelon − more than $200 million in front by some estimates. Blue was unrepentant: “It made more sense to, in essence, just pay the fine.”
GA / Heathgate has employed at least one private investigator to infiltrate environment groups in Australia. The infiltrator, known as Mehmet, had previously infiltrated green groups as part of an undercover police operation before he moved into the private sector to set up his own security company, Universal Axiom.
He also provided personal protection to visiting GA executives. When asked about the company’s tactics, a Heathgate spokesperson said the company was privately owned and had a policy of not responding to media questions.
People who worked at Friends of the Earth at the time − around the turn of the century − say they were highly suspicious about Mehmet from the get-go. His activities might have been laughable and pathetic except that he provided exaggerated information to police about the likely attendance at a protest at the Beverley uranium mine in May 2000.
That led to an excessive police presence at the protest and police brutality against environmentalists and local Aboriginal people. An online video clip details this brutality. Heathgate applauded the police action (in a 2000 media release which is no longer available online). After a 10-year legal case, 10 people were awarded a total of $700,000 damages.
Heathgate’s record at Beverley has been substandard. At least 59 spills have been documented at the mine. The company sells uranium to nuclear weapons states (all of which are in breach of their disarmament obligations under the Nuclear Non-Proliferation Treaty), to at least one country with a recent history of secret nuclear weapons research (South Korea), and to countries which refuse to ratify the Comprehensive Test Ban Treaty.
Heathgate’s activities at Beverley have been extremely divisive among Adnyamathanha Traditional Owners. Some Adnyamathanha Elders have formed an Elders Group as a separate forum from the Adnyamathanha Traditional Lands Association. Enice Marsh said: “There have been many attempts over the past 10 years to try and bring greater accountability to what’s happening in Native Title, and to stop the ongoing assault on our Yarta (country). Many of us have tried with very little resources, limited understanding of the legal system and environmental laws, and despite a mountain of bullying, lies and deceit from mining companies, lawyers, and self-inflated thugs in our own community who dare to call themselves ‘leaders’.”
Is it any wonder that many intelligent, reasonable Australians still hate the uranium mining industry and hate it with a passion?
Facebook Recommendations
Read all about it
Punch live
Up to the minute Twitter chatter
RT @HeatherSmithAU: Can living in another country change your life for the better? by @lucyjk on @newscomau f. moi http://t.co/E5Ma3kBut2
More class from 9's footy show, lampooning a baby that allegedly looks like Sterlo with a pic swiped from Facebook http://t.co/BGoYP6Pn68
Recent posts
The latest and greatest
The Punch is moving house
Good morning Punchers. After four years of excellent fun and great conversation, this is the final post…
Will Pope Francis have the vision to tackle this?
I have had some close calls, one that involved what looked to me like an AK47 pointed my way, followed…
Advocating risk management is not “victim blaming”
In a world in which there are still people who subscribe to the vile notion that certain victims of sexual…
Nosebleed Section
choice ringside rantings
From: Hasbro, go straight to gaol, do not pass go
Tim says:
They should update other things in the game too. Instead of a get out of jail free card, they should have a Dodgy Lawyer card that not only gets you out of jail straight away but also gives you a fat payout in compensation for daring to arrest you in the first place. Instead of getting a hotel when you… [read more]From: A guide to summer festivals especially if you wouldn’t go
Kel says:
If you want a festival for older people or for families alike, get amongst the respectable punters at Bluesfest. A truly amazing festival experience to be had of ALL AGES. And all the young "festivalgoers" usually write themselves off on the first night, only to never hear from them again the rest of… [read more]Gentle jabs to the ribs
Superman needs saving
Can somebody please save Superman? He seems to be going through a bit of a crisis. Eighteen months ago,… Read more
Most commented