Australian uranium sales to India cancelled

John Dixon in Melbourne
The National Business Review

Australian sales of uranium to India, announced last year by then Prime Minister John Howard, are off.

Foreign minister Stephen Smith announced that the Rudd Labor government would stand by its election promise to not sell uranium to countries that are not signatories to the nuclear non-proliferation treaty.

The 1968 treaty requires members not to develop atomic weapons and for nuclear-armed countries to reduce their weapons stockpiles; India has never signed as it reserved the right to develop and maintain a nuclear deterrent against Pakistan.

The Howard government had agreed to sell uranium to India, following on from a sales agreement with China, on the basis of what both governments at the time described as strict conditions, and also on condition that India would complete a civilian nuclear accord with the US.

India is developing nuclear power plants as part of its energy solution for the rapidly-developing nation.

Australia holds the world’s largest known reserves of uranium, with 40 per cent. The international price is relatively stable currently, at around $US90 per pound.

The announcement had no discernable impact on the share price of Australian uranium miners, coming just a few days after the UK government announced its plans to build new nuclear power plants as a key part of its energy strategy.


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