urg::: Uranium surge leaves Oz with diplomatic dilemma

[Len Kanaar - FoE Sydney]

Environmental Data Interactive, UK

Uranium surge leaves Oz with diplomatic dilemma
(published on 8-September-2005)
URL: http://www.edie.net/news/news_story.asp?id=10535

Soaring oil costs combined with a growing Asian nuclear love affair 
have combined to push uranium prices through the roof.

Australia, home to close to half the world's uranium yet without its 
own nuclear industry, is well placed to supply the surging markets 
for the radioactive metal in Indian and China.

Yet the potential political backlash and rock-bottom prices has not 
always made such a sale an attractive prospect Down Under.

But, according to The Australian national newspaper prices have 
tripled recently as surplus stocks become depleted and demand 
continues to rise.

The new rush for yellowcake has industries champing at the bit, 
calling for the opening up of resource-rich land.

The Australian uranium industry is currently controlled by three 
major players, BHP Billiton, Rio Tinto, and General Atomics, each of 
which operates a single mine in South Australia.

But extensive exploratory work has been carried out in Queensland and 
the Northern Territories by several other companies, with 
industrialists pushing government questioning why it is alright to 
mine in one uranium-rich state, but not in others.

Australian environmentalists opposed to nuclear energy have warned 
against eyeing up the Indian and Chinese markets.

The point to international agreements that prevent the sale of 
uranium to those who have not signed the nuclear non-proliferation 
treaty or signalled they would be happy to allow independent 
inspectors to view their reactors.

India refuses to sign the treaty, believing it has the right to be a 
fully-fledged nuclear power, while China has indicated international 
inspectors would not be welcome at its sites.

Nevertheless, the potential for profit looks likely to be very 
tempting and Australia has already held exploratory talks with China 
and is looking to formalise negotiations in coming months.

Those pushing the plans stress that China adheres to strict 
guidelines in accounting for its uranium, allowing every ounce to be 
tracked and ensuring it would be used for non-military purposes.

Selling to China would be no different than trading with any of 
Australia's 20 or more other customers, they say.

By Sam Bond


© Faversham House Group Ltd 2005.