Uranium industry wants details

Friday, 27 July, 2007

by George Lekakis
Herald Sun

THE uranium industry's peak body will seek talks with the Federal Government over Cabinet's push to remove the ban on uranium exports to India.

Industry and Resources Minister Ian Macfarlane yesterday confirmed the Government may open the way for uranium exports to India, even if the Indian Government does not sign the nuclear non-proliferation treaty.

Such a deal would break new ground for Australia, which exports uranium to 11 countries - all of which are signatories to the non-proliferation pact.

Michael Angwin, executive director of the Australian Uranium Association, said his organisation would not support the sale of locally-mined uranium to countries if it involved a weakening of the world's non-proliferation regime.

"On issues as significant as this then we would expect the Government to consult with the industry," Mr Angwin said.

"I think this has come on a lot faster than people generally anticipated.

"We wouldn't support any arrangements that Australia agreed to which undermined the world's or Australia's anti-proliferation regime."

While the export of uranium to India could help to accelerate the roll out of new mines in South Australia and the Northern Territory, it is also a tricky issue for the AUA - which is finalising a code of practice for the industry.

A key feature of the new code will be the requirement for Australian mining companies to help ensure that uranium is used only for peaceful purposes.

India has consistently refused to sign the non-proliferation treaty despite pressure for more than 30 years from the United Nations and leading superpowers. If India signed the treaty it would be forced to disarm its nuclear weapons.

In the 1990s, India and Pakistan were engaged in a regional arms race that led to the test-detonation by both countries of several nuclear devices. However, India has never been linked to the spread of nuclear weapons technology to other nations.

"India has an impeccable record in terms of nuclear non-proliferation and there will be a straight and very strict requirement in terms of the safeguard agreement between Australia and that country," Mr Macfarlane said.

"It's simply not realistic to say that India cannot buy uranium from Australia."

Mr Macfarlane was asked whether the Government was prepared to export uranium to countries such as India that were not signatories to the non-proliferation treaty.

Mr Macfarlane said India had given assurances that Australian uranium would only be used for electricity generation.

Also, Australian uranium used in nuclear power plants would be inspected by the International Atomic Energy Agency.

"If a country is going to continue its economic development as India is, its energy requirements are going to be substantial and, rather than just rely on treaties, I think their actions are the things you would need to take into consideration," Mr Macfarlane said.

"To suggest that Australian uranium will be used for anything but peaceful purposes is just a scare campaign."

Federal Cabinet would make a decision on uranium sales to India after the US and India completed a bilateral agreement on nuclear co-operation.

The push to sell uranium to India came as Mr Macfarlane also said he was reviewing possible legal options for overriding the bans on new uranium mines in Queensland and Western Australia.

The threat to circumvent the Beattie and Carpenter Governments followed comments by Professor Greg Craven, of Curtin University, that the Federal Government had constitutional powers to overturn the bans.


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