and then there is also the indians

The Copenhagen summit may have failed to reach a definitive solution on carbon reduction, but the concerted global focus on a low carbon future will be a boon for Australian uranium producers and the sector in general, provided they can latch on to the growing demand from China and India.

While China is widely eyed as the next major buyer of Australian uranium and technology, the Indian market has stayed off the radar and could soon be lost as other uranium producers, most notably Canada, rush in to pick up the rewards.

India, one of the louder voices at the climate negotiations, is forging ahead with its plans to make nuclear energy a viable part of its energy equation. Its refusal to sign the Nuclear Non-Proliferation Treaty (NPT) has long been the sticking point for the Rudd government but a possible policy U-turn could be the ticket for the Australian uranium industry to enter a market with a growing appetite for yellow cake.

But a concrete political decision will be needed quickly, if the latest news in the sector is anything to go by.

In the last three months, India has secured supply deals with a number of uranium exporters, many of which are set to supply not only uranium but also equipment and technical expertise.

Canadian uranium heavyweight Cameco Corporation has arrived in the Indian market and has big plans.

Cameco, which account for 15 per cent of global uranium production in 2008, has opened a marketing office and flagged its intention to make the most of a market that in its own worlds represents a "large market opportunity for any uranium fuel supplier."

The miner is not only looking at long term sales but also aiming to tap into exploration activities in the region and provide guidance as the Indians move to ramp up their domestic production.

Reports in Indian media also suggest that negotiations with Britain over a nuclear pact are now also complete, paving the way for companies from the UK to target the Indian civilian nuclear sector.

While the Canadians and others extend their footprint in the sub-continent, Australian companies are finding things difficult as uranium prices remain in the doldrums and the Australian dollar gathers strength.

Sydney-based research firm Resource Capital (RCR) said in its December review of the global uranium prices that it saw little chance of a significant up-tick in spot prices in the near term.

The uranium spot price is currently trading at $US45 per pound, down five per cent from the US$52 three months ago. At the end of December 2008, the prices were $US52.50 per pound.

Long term prices currently stand at $US61 a pound, down from $US70 a pound in December last year.

The renewed impetus to the uranium debate has come from two directions.

Firstly, the federal opposition, under its new leader Tony Abbott, has reawakened the nuclear debate, tying it to the economic health of the nation and secondly, the Indian government has given a clear signal it wants to re-engage with Australia on the issue.

Uranium was a key point of discussion in Rudds recent visit to India and the recent rumblings from Canberra would seem to suggest that there is interest in promoting civil nuclear energy as means to foster non-proliferation .

However, Australian Uranium Association executive director Michael Angwin says that any policy shift would take time, despite the loss of a competitive edge for Australian miners.

While the trade minister Simon Crean and foreign minister Stephen Smith have been conciliatory on the export issue, Rudds hard line stance is unlikely to change before the next election, says Angwin.

He also says that while nuclear energy has a part to play in helping India cut its carbon emissions, the Rudd government is seeking a clearly defined position from India on civilian and military nuclear use, without which exports are off the table.

Canadas rush into the Indian market was facilitated by a civilian nuclear technology deal between the US and India, a deal incidentally approved by the Rudd government, and more importantly a change of government in Ottawa.

The election of a Conservative government, led by Stephen Harper, was the catalyst for Canada to lift its ban on uranium exports.

If and when a similar change of heart, or government, comes to Canberra it might well be too late, and by then India may not need Australian uranium at all.