Wednesday, 6 December, 2006

by Dennis Shanahan, Political editor
The Australian

URANIUM exports to China are about to get the green light fromparliament, although there are demands for tighter international controls and more on-site inspections.

In the second parliamentary report in two days, Labor MPs have agreed to back the expansion of Australia's uranium industry.

In a boost for resources exports, the parliament's Treaties Committee has approved the saleof uranium to China for the first time.

The Government began negotiating with China over uranium sales last year.

But the committee is expected to recommend more support for the International Atomic Energy Authority to enable it to properly supervise the use of Australian uranium in China.

Committee members are also expected to express concern about on-site inspections in China because it does not receive the same scrutiny under theNuclear Non-Proliferation Treaty as countries without nuclear weapons. During evidence, the committee was told the IAEA's safeguards budget globally was just $US120 million ($152million) and that only a handful of nuclear power stations in China were inspected.

Committee members were concerned that "conversion facilities" where uranium can be enhanced should be more closely monitored to ensure Australian uranium was only used for peaceful power production.

The committee chairman, Liberal MP Andrew Southcott, will release the report in parliament today with the findings and recommendations on two treaties that would allow for the sale of Australian uranium to China.

Dr Southcott said yesterday the committee had received 33 submissions, including from the uranium mining industry representatives, environmental organisations, anti-nuclear organisations and private individuals.

"The committee received evidence that with an estimated 36per cent of the world's low-cost recoverable uranium deposits, Australia is well-placed to expand its uranium exports and meet China's long-term uranium demands, which are expected to quadruple by 2020," Dr Southcott said.

The committee received evidence regarding the estimated impact of the treaties on Australia's uranium industry and the adequacy of nuclear safeguards.

This week, Labor MPs, facing a resolution at the ALP national conference next year to ease restrictions on uranium mining, backed plans to turn Australia into a world leader in uranium and endorsed a national campaign to "dispel" myths about nuclear power and uranium.