Tuesday 28 March 2006
ABC NT Local News

Australia has about 40 per cent of the known uranium reserves in the world.

The NT Minerals Councils says an agreement on China's use of Australian uranium would be positive for the Northern Territory.

China's second highest leader, Prime Minister Wen Jiabo, arrives in Australia this Saturday, and the centrepiece of his four-day visit looks set to be a deal on uranium.

Chief executive of the Minerals Council, Kezia Purick, says if an agreement is reached, it is very likely that Australia's first shipment of uranium to China would come from the Territory.

"It could be a positive note for explorers looking to come to the Northern Territory and then ultimately find a deposit and develop it and find their markets overseas," she said.

"If China's a market that they can export their commodity to, well then that's a very positive move."

The Chinese government expects to complete an agreement with Australia on purchasing uranium for its nuclear energy program during the visit, China's state media said.

The state-controlled Xinhua news agency said China would "probably sign cooperative agreements with Australia on peaceful use of nuclear energy and uranium mining".

It quoted Liu Jieyi, director of the North American and Oceanic department of Beijing's foreign affairs ministry, as saying the nuclear cooperation deal would be for peaceful use and would be supervised by the International Atomic Energy Agency (IAEA).

For more than a year the Chinese Government has been talking to Australia about importing Australian uranium.

The sticking point has been ensuring that the uranium would not end up in Chinese bombs and missiles.

Australia has about 40 per cent of the world's known uranium reserves and is anxious to broaden its exports with sales to the booming Chinese market but has insisted it must first be confident the nuclear material will not be used to build weapons.

Mr Liu was quoted as saying that consultations between Australia and China on nuclear cooperation had yielded "many positive results".

"China believes the cooperation is conducive to the interests of the two countries and two peoples, and the building of an eco-friendly society in China," he said.

The Department of Foreign Affairs (DFAT) said earlier this month that any deal with China would be subject to parliamentary and public review.

Mr Wen will spend four days in Australia before travelling to New Zealand, Fiji and Cambodia.