Costello open to nuclear power option

CANBERRA - Australian Treasurer Peter Costello says he will support the development of nuclear energy in Australia if it is economically viable.

Australia holds about 40 per cent of the world's uranium resources and, last year, exported 7765 tonnes of uranium worth more than A$410 million ($443 million).

"If domestic [uranium] production stacks up on economic grounds of course I would support it. The only point I would make is that we have large deposits of coal. We can produce electricity from coal extremely competitively," Costello said.

Australia has three uranium mines - Olympic Dam, owned by Australian miner WMC Resources, Ranger mine, owned by the Rio Tinto-controlled Energy Resources of Australia and Beverley mine, owned by General Atomics.

Costello said it would be in the country's interests to develop the uranium industry for peaceful purposes.

Australia has earmarked Vietnam, Indonesia and Thailand as potential future uranium export markets if they undertake to limit its use to peaceful nuclear purposes.

The Government has already signed 19 deals, covering 36 countries and is in talks to include China on that list.

Power of one

* Australia has about 40 per cent of the world's uranium resources.

* Last year, it exported 7765 tonnes of uranium.

* It has one nuclear research reactor, at Lucas Heights, near Sydney.

* The country has three uranium mines - Olympic Dam, Ranger and Beverley.

* Vietnam, Indonesia and Thailand have been earmarked as potential future uranium export markets.

* Australia has already signed 19 deals, covering 36 countries, and is in talks to include China.

- REUTERS