Establishing a consolidated Commonwealth-owned ‘defence precinct’ at Western Australia’s Henderson shipyard could drive demand for uranium, as Australia develops the capability to own, operate, and sustain conventionally armed nuclear‑powered submarines.
The Australian Government on 16 October announced that developing the precinct underpin tens of billions of dollars of investment in defence capabilities in the West over the next two decades, creating 10,000 high-skilled local jobs.
It also represents a major milestone on the AUKUS pathway towards Australia building and acquiring nuclear submarines, which use small modular reactors.
At the same time outdated and archaic regulations at the federal and state levels that prohibit nuclear power – and in some cases exploration and mining of uranium – add levels of complexities.
The government will make an initial investment of $127 million over three years to progress planning, consultations, preliminary design, and feasibility studies, as well as enabling works for the precinct. This work will inform future decisions on delivery options and models.
Western Australia Minister for Defence Industry Paul Papalia says the investment of tens of billions of dollars will turn Western Australia into a defence powerhouse.
“The Defence Precinct at Henderson will be the home of depot-level maintenance for nuclear-powered submarines as part of AUKUS. It will also be the maintenance hub for Australia’s nuclear submarines,” Papalia says.
“This historic agreement will result in generations of jobs and diversify the economy like never before.”
The defence precinct will support building new landing craft for the Australian Army and general purpose frigates for the Navy, with requisite large vessel infrastructure.
With provisions for depot-level maintenance and contingency docking for Australia’s future conventionally armed nuclear-powered submarines, the government says these maintenance capabilities will be established in accordance with domestic processes and regulatory requirements.
The government adds these maintenance capabilities will also comply with Australia’s international obligations to maintain the highest standards for nuclear safety, security, and safeguards.
Prime Minister Anthony Albanese says Henderson already plays a critical role in the delivery and sustainment of Australian Defence Force capabilities, and this will see the important role of WA industry grow further.
WA Premier Roger Cook adds that the precinct will set up the state for an exciting future, and puts Western Australia at the centre of the nation’s defence capability.
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