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Uranium exports to China to increase, says Australian resources minister

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Ray Brindal | April 03, 2009
Article from: Dow Jones Newswires

MINING of uranium in Australia and its export to China will increase in coming years, in part reflecting declining supply from secondary sources, Resources and Energy Minister Martin Ferguson says.
Uranium exports to China to increase

Heavy machinery at Energy Resources of Australia's Ranger uranium mine in the Northern Territory. Picture: Bloomberg

"The expansion of the nuclear industry here in China opens up new resource opportunities for Australia from the point of view of uranium mining," Mr Ferguson said in an interview recorded in China and broadcast on ABC's AM radio program today.

Given that Australia accounts for about one third of global uranium resources, it should be producing more of the fuel than it is at the moment, he said.

There has been considerable successful effort put into exploration for uranium across Australia in recent years so the industry will expand, he said.

The minister said this will occur at a time when demand is expected to increase globally and when supplies from secondary sources from nuclear warheads are starting to decline in number.

"Hence market opportunities such as in China will open up for Australia," he said.

KEY COMMODITY PRICES: oil, gold, base metals, livestock and wheat

The first Australian uranium was exported to China in 2008, under a policy that only allows its use for civil nuclear energy purposes and not for stockpiling, Mr Ferguson said.

Australia is a major global supplier of uranium oxide, exporting 10,139 tonnes valued at $887 million last fiscal year ended June 30, 2008, according to official data.

Mr Ferguson wouldn't discuss a reporter's question that the Australian Government late March rejected a $2.6 billion takeover bid by China Minmetals for OZ Minerals not because of OZ's Prominent Hill mine's proximity to Woomera weapons testing range but because it is near the Pine Gap spy base.

"Those matters are of a confidential nature. Neither this nor any previous government would seek to discuss those matters publicly." he said.

China Minmetals has recast its deal with OZ Minerals to exclude the Prominent Hill mine.

To read The Australian's breaking news story on Pine Gap, click on Chinese bid block linked to Pine Gap.