Flashpoints

Australian Uranium in India

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Flashpoints

Australian Uranium in India

The deal with Australia to sell uranium to India is welcome. Those worried about proliferation have nothing to fear.

In September 2008, Australia, as part of the Nuclear Suppliers Group, granted India a waiver to engage in international nuclear commerce without having to accept full scope safeguards on its nuclear program. However, despite its acquiescence to the NSG consensus decision, Australia held back, as an individual nation, from entering into a nuclear cooperation agreement with India. This changed last week when Australian Prime Minister Julia Gillard announced that she would make the necessary changes to enable Australia to sell uranium to India.

As India looks to expand its nuclear power program through the addition of new nuclear reactors –both imported and indigenously built ones – this is obviously a welcome decision. In fact, for the last several years the country has suffered from a shortage of fuel for its operating power plants. Since early last decade, the Nuclear Power Corporation of India Ltd, (NPCIL), the country’s only nuclear plant operator, had voiced concerns that the biggest constraint on its program is the availability of fuel. Although India does have some uranium reserves in the southern and northeastern parts of the country, these are of low grade to the extent that they would typically be discarded in Australia or Canada as tailings. The uranium mines in the northeast, meanwhile, have been mired in public protests and litigation, and hence not really functional. This lack of uranium was therefore one of the reasons for New Delhi engaging with the United States in a nuclear cooperation agreement. On conclusion of the many steps of this historic and unprecedented agreement, the first benefits were reaped in the form of shipments of uranium fuel acquired from France and Russia.

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