THE uranium rush in South Australia was boosted yesterday when exports to China were unlocked by the approval of two key agreements. Foreign Affairs Minister Alexander Downer announced the Australia-China Nuclear Transfer Agreement and the Nuclear Co-operation Agreement had been ratified at a meeting in Beijing.
Industry leaders said the move would trigger millions of dollars of extra Chinese investment in SA as the energy-hungry nation looks for fuel for its ambitious nuclear power program. Uranium exports to China were prohibited, pending the execution of the treaties, which now come into force in a month.
Keith Yates, chairman of the State Government's Resources Industry Development Board, said China's ambition to be involved in uranium mining was translating to investment in SA, which has 40 per cent of the world's known reserves and great potential for further finds.
"Obviously that's already evident in the investments (Chinese companies) have already made in SA. There's no doubt that we're on the verge of a very significant uranium export boom," he said.
The agreements' ratification would be music to the ears of the owners of South Australia's two producing uranium mines, Olympic Dam and Beverly, and the owner of the Honeymoon uranium mine, which is set to come into production this year.
It was also likely to spur even more interest in the crop of small Adelaide-based uranium companies, which have been listed on the stock exchange recently.
Last year, four companies were listed in Adelaide, with at least one large listing, of Adelaide-based Southern Uranium, on the cards for the early part of this year.
China has already signalled its interest in SA's uranium stocks, with the announcement late last year of a $40 million joint venture between Sydney company PepinNini Minerals and Chinese state-owned company Sinosteel Corporation to develop a uranium project in the state's north-east. China is struggling with electricity demand as its economy modernises and, according to Resource Capital Research, it is now planning to build 63 new nuclear reactors, up from 24 in May.
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