China asks for uranium access

China wants to explore for uranium in Australia.

Foreign Affairs Minister Alexander Downer has confirmed that China has asked the Federal Government for permission to conduct uranium exploration activities in Australia.

But Mr Downer says China would have to sign a nuclear safeguard agreement with Australia before it could conduct uranium mining or exploration activities.

"We wouldn't be exporting any uranium to China for military purposes of any kind," Mr Downer said.

"By that I don't only mean for use in nuclear weapons but also we wouldn't be exporting any uranium to China for use in military vessels or vehicles of one kind or another."

Chinese officials asked for access during meetings in February with the Australian Nuclear Safeguards and Non-Proliferation Office.

Mr Downer says China cannot export uranium from Australia until it signs an agreement specifying the material will not be used for military purposes.

In August the Federal Government assumed control of mining rights in the Northern Territory, which allows the Commonwealth to grant approvals for exploration and mining activity.

But Mr Downer says China would have to wait until the state Labor governments reversed their 'three mines' uranium policy.

"They have a three-mines policy so they wouldn't approve any new uranium mines, so it's all a bit academic unless they change their policy," Mr Downer said.

"But if they change their policy, there's no reason why Chinese companies can't invest in Australian resources industries but that would all be subject to the foreign investment review board."

Prime Minister John Howard is supportive of China's request, provided it satisfies the Foreign Investment Review Board.

"If China or anybody else wants to mine uranium in Australia they'll be subject to the same laws as anybody else," Mr Howard said.

Federal Opposition Leader Kim Beazley says he has "no problems" with exporting uranium to China, provided the problems of security and waste disposal are addressed.

But Mr Beazley does not believe another mine is needed in Australia.

He says the industry is already big enough, though he does not object to exporting more uranium.

"I'm happy to export uranium to China provided the Government has satisfied all the tests that we apply to every uranium market on the security of the materials we send there and the ultimate end use of them," he said.

Northern Territory Chief Minister Clare Martin says several international companies are already involved in exploration activities.

She says she does not have a problem with China's interest.

"We don't actually give exploration applications or licences for exploration based on any particular mineral," Ms Martin said. "You just get a licence to explore.

"We have international companies doing that all the time and those will be assessed appropriately."

The Northern Territory Minerals Council says Chinese miners will have to obey the same exploration regulations as other explorers.

The council's chief executive officer, Kezia Purick, says it is up to the Federal Government to negotiate with the Chinese Government to ensure the conditions of the non-proliferation treaty are met.

"There will be no shortcuts," she said.

"If a company comes in to explore and mine for uranium they will still have to go through all the approval processes and they will still have to sell it to a country that has been locked in to all these agreements with Australia."


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