uranium policy

THE Australian Government is reportedly set to allow for a doubling of current exports of uranium as early as next year as it moves closer to finalising a deal with China.

According to a report from Melbourne's The Age, negotiations between the government and the nuclear power hungry Chinese are currently being finalised as the country seeks to satisfy demand for the 30 nuclear power reactors reportedly under construction.

"China would be the new customer we are most looking at," Federal Resources Minister Ian Macfarlane said.

"China is talking about a six-fold increase in its nuclear power over the next 20 years and an increase by 2010 which would absorb all our current exports at the moment."

The government is currently developing a three-year strategy to expand Australia's uranium industry. Last year revenue from Australian uranium exports was $411 million, with supplies satisfying around 40% of world demand.

"The demand is there, the opportunity is there, the price has trebled. We are absolutely looking at increasing our exports," Macfarlane said.

The government will meet with representatives from the mining sector, environmental groups, indigenous groups and state resource ministers next month as it moves to progress its updated uranium policy.

Macfarlane also wants to reignite debate regarding construction of nuclear power plants in Australia.

Last week Macfarlane attacked the Western Australian State Government for its policy on uranium mining, saying the state was sitting on a potential $5.8 billion resource based on the current spot price of $US29/lb.

Australian uranium production for 2004 from the Ranger, Olympic Dam and Beverley mines, totalled 10,591 tonnes. Australia is currently the world's second largest exporter.