Uranium sales to China approved

Wednesday, 6 December, 2006

by Sandra O\'Malley
AAP

A PARLIAMENTARY committee has given the green light for Australian uranium sales to China, opening the door to an annual $250 million export windfall.

But opponents warn it will see Australian uranium being used in nuclear weapons.

The committee was charged with examining the uranium sales deal between the two countries, including a safeguards agreement, which it found to be in the national interest.

It is convinced there are suitable measures in place to ensure Australian uranium will only be used for peaceful purposes, including China's membership of the nuclear non-proliferation treaty (NPT) and the International Atomic Energy Agency (IAEA).

"Both Government and opposition members of the committee have concluded that the sale of uranium to China, protected by these safeguards, is in the national interest," committee chairman Andrew Southcott said.

Australian Democrats deputy leader Andrew Bartlett submitted a dissenting report, calling for the agreement to be opposed.

"The nuclear proliferation risks of selling uranium to China far outweigh any small economic benefit and should be opposed," Senator Bartlett said.

"Australia's bilateral safeguards are inadequate because they rely on the monitoring of the International Atomic Energy Agency, which the agency's own director says is flawed."

Committee deputy chairman Kim Wilkie admitted there were legitimate concerns about the effectiveness of the Austrian-based IAEA – which has the same budget as the Vienna police force – to monitor nuclear activity.

"In this age of international terrorism, this is not good enough," Mr Wilkie said.

The IAEA needed, among other things, advanced satellite monitoring technology.

As reliance on nuclear power spread internationally, safeguard concerns would grow unless the IAEA was better funded, and Australia should take a lead on this, Mr Wilkie said.

The committee has recommended that Australia review its funding to the IAEA, with a view to increasing its voluntary contributions to the organisation.

The Australian Conservation Foundation warned that Australia had no way of ensuring its uranium didn't end up as nuclear weapons.

"Safeguards can't guarantee Australian uranium won't end up in nuclear weapons," ACF nuclear-free campaigner David Noonan said.

"Once uranium is out of our hands it is completely out of our control."

With Australia's current uranium production accounted for, it could be a few years before there is spare output for China to buy.

When that does occur, the committee believes it could generate around $250 million a year in export income.

"Some expect China's nuclear power generation capacity to increase eightfold over the next 25 years," Dr Southcott said.

"Estimates available to the committee suggest that, at a current price of $100 a kilogram, with Australia selling an estimated 2500 tonne of uranium to China, this would earn Australia $250 million a year."


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