An Australian-based commercial space launch industry has taken a major step forward with the granting by the Federal Government of environmental clearance to Kistler Aerospace Corporation.

The Minister for Industry, Science and Tourism, John Moore, and the

Minister for the Environment, Robert Hill, said today the Government

had given the environmental green light for the commercial space

launch service Kistler plans to establish at Woomera, South Australia.

Kistler will use the site for reusable launch vehicles and for the

rapidly expanding market in low-Earth orbit communications satellites.

Hundreds of satellites will be launched from Woomera and will provide

vastly enhanced communication links for the global information

superhighway.

"Kistler will provide launch services with its K-1 reusable aerospace

vehicle, the components of which are designed to be returned to the

launch site rather than expended in flight," Mr Moore said.

"This innovation, combined with the K-1's use of fuels similar to that

in jet aircraft, provides a way to put large numbers of satellites into

orbit, with minimal impacts to the environment, and at a significantly

lower cost."

"We have set down some strict but reasonable environmental conditions.

But subject to these, there is no reason why this project can't go

ahead and be a major boost for Australia," Senator Hill said.

These conditions include meeting launch licensing requirements being

developed by the Department of Industry, Science and Tourism. The

Department will be responsible for regulating Kistler's space launch

activities and ensuring commercial space launches are in line with

the Commonwealth's international obligations.

"To further develop the space industry in Australia, the Commonwealth

also is negotiating with the Russian Federation on an agreement on the

use of space technology that will enhance Australia as a preferred

location for commercial space activities," Mr Moore said.