COUNTRY'S MAIN URANIUM PRODUCER SENDS MESSAGE TO RUDD 

THE head of Australia's largest uranium miner has joined calls for the Rudd Government to consider a nuclear future.

Rob Atkinson, chief executive of Energy Resources of Australia, told BusinessDaily yesterday the country should be open to the low-carbon energy source given its rich reserves of the radioactive metal. 

Rio Tinto, ERA's majority shareholder, revived the nuclear debate with a submission urging Prime Minister Kevin Rudd to start work on a regulatory framework for nuclear energy in Australia. 

"In terms of uranium, I think that Australia looks as though it has made the decision that it will be a major producer," Mr Atkinson said. 

"Being a major producer, and having nuclear power on our doorstep, and being part of the nuclear cycle in that way -- it may beg the question in future."

Other countries in the region had already incorporated the clean-burning fuel into their greenhouse gas-reduction plans. 

"I recently came back from a trip from Asia, and all our customers recognise that nuclear, while it is not the solution, is certainly part of the solution, along with renewables, along with gas, along with carbon sequestration," Mr Atkinson said. 

Asked if the Rudd Government should lift its ban on uranium exports to India, which has not signed the Nuclear Non-Proliferation Treaty, he said he respected the decision but added that demand from the emerging economic giant would be "very significant" in the future. 

He shrugged off the suggestion that BHP's plans to start exporting uranium to China this year would affect ERA's recently-established presence in the world's third largest economy. 

"Our contracts are very long-term -- we have customers with us that took their first tonne 30 years ago," Mr Atkinson said. 

"We typically agree on contracts two to four years in advance and they can be up to 10 years' in duration."

ERA shipped its first uranium to China last year but sends most of its exports to the US, Europe and Japan. 

In other developments yesterday, ERA reported a record $127.6 million net profit for the first six months of the year -- more than triple its $38.9 million earnings last year. 

The result, which was buoyed by higher sales, greater production and favourable moves in the US-Australian dollar exchange rate, was in line with ERA's previous guidance. 

Mr Atkinson said uranium prices should remain steady for the rest of this year. 

ERA shares rose 35 to $25.30 yesterday, in line with strong gains across the broader market.