Thursday, 30 August, 2007

Mine Web

An agreement allowing mining companies, such as BHP Billiton and Rio Tinto, to export uranium from Australia to Russia for civilian purposes will be signed by Putin during his trip to Australia.

Russia will soon sign a deal with Australia on the civilian use of nuclear energy in a step that could allow the worlds biggest mining companies to export Australian uranium to Russia, officials told Reuters.

"The agreement will be signed during President (Vladimir) Putin's trip to Australia," a Russian official close to the situation said on Wednesday.

Australia's Foreign Affairs Minister Alexander Downer said earlier this month the deal would be signed during Putin's visit to Asia Pacific Economic Cooperation (APEC) summit in September. Russian officials have not previously commented.

"It will allow companies like BHP Billiton , Rio Tinto and others to export uranium from Australia to Russia," the Russian source said, adding that the uranium exported to Russia would only be used for civilian uses.

Another official close to the Kremlin also confirmed the deal would be signed during the visit.

Australia has 40 percent of the world's known reserves of uranium and is a major exporter of the material. Russia has ambitious plans to build dozens of new reactors and expand its presence on the world nuclear market.

Downer said the agreement would be along the lines of one Canberra is currently negotiating with China, opening the door to talks on future exports of the nuclear fuel.