As a number of ASNOs activities are of benefit to Australias
uranium exporters, the Government recoups about 40% of ASNOs annual costs for
safeguards activities through the Uranium Producers Charge.

The current arrangements were introduced through the Nuclear Safeguards (Producers of Uranium Ore
Concentrates) Act 1993. The Act
provides for each producer to pay an annual charge, prescribed by regulation,
up to a maximum of $500,000.

Following a review as part of the Governments overhaul of
business regulation in June 1997, the charge on uranium producers was
retained. However, this charge changed
to a safeguards fee per kilogram of production. This was seen as a fairer
mechanism than the previous flat fee. The new fee includes a component for future costs, that is, the ongoing
costs in respect of AONMwhich
could remain in the fuel cycle for a considerable period after a mine had
ceased production.

In November 2000 the fee was set at 6.7463 cents per
kilogram of contained uranium produced during 19992000, which yielded $469,161 for Consolidated Revenue.