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CANBERRA - Australian exporters will be free to begin selling uranium to China within months after both countries signed an agreement covering use of the nuclear fuel, Foreign Minister Alexander Downer said today.
Australia and China ratified a Nuclear Transfer Agreement and separate Nuclear Cooperation Agreement on Thursday in Beijing, with the second agreement opening the door to civilian nuclear cooperation between the two countries.
"The legal framework for Australian uranium producers to commence exports to China is expected to be in place early in 2007," Downer said in a statement. "The timing and quantities of exports will be a matter for commercial negotiation."
Australia, which holds 40 per cent of the world's recoverable uranium, reached agreement last April to begin exporting uranium to China in a deal that should double annual revenue from exports of the nuclear fuel to A$1.0 billion ($1.13 billion).
China is a signatory to the Nuclear Non-Proliferation Treaty, unlike India which has tried, but so far failed, to win approval to buy Australian uranium.
China, with its huge population and buoyant economy, has a huge appetite for energy. It is banking on nuclear power to meet its needs and cut greenhouse emissions from fossil fuels.
Despite its huge reserves, Australia accounts for only 23 per cent of global uranium production, in part because of mining bans associated with fears over of the safety of nuclear waste and proliferation.
The country currently exports uranium to 36 countries under strict conditions ensuring its peaceful use.
- REUTERS
