Australia in talks to sell uranium to China for first time

SYDNEY, Jun 05, 2005 -- AFX-Asia

The Australian government is in negotiations to export uranium to China for the first time, the Weekend Australian reported on Saturday.

Officials have been in talks with the Chinese for several weeks over nuclear safeguards which could allow Australia to send the lucrative export to China, according to the report.

Foreign Minister Alexander Downer told the paper that the matter had been discussed when China's number two, chair of China's National People's Congress Wu Bangguo, visited Australia last month.

"We have entered into those discussions and the negotiations are moving ahead reasonably positively," he was quoted as saying.

"It is in Australia's national interest, since we export uranium, that there be a global expansion of nuclear energy."

Nuclear energy is banned in Australia but debate over the issue has crept into the political agenda in recent weeks as an environmental alternative to fossil fuels.

"Nuclear energy can be expected to have an important place in meeting future energy needs over the next few decades," Downer was quoted as saying.

China has embarked on a plan to boost nuclear energy sources to mitigate chronic energy shortages.

Australia earns some 300 mln usd annually from uranium exports.

mfc/ben/mas

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