PERTH (miningweekly.com) – The Australian uranium sector has welcomed a report by the Joint Standing Committee on Treaties regarding the Australia–India nuclear cooperation agreement.

The report gave a tentative green light for Australia to sell uranium to India on condition that safeguards were put in place.

The committee made six recommendations, including that the bilateral treaty only be ratified if India fully achieved the separation of civil and military nuclear facilities and that the country established a fully independent nuclear regulatory body.

The committee also recommended that the International Atomic Energy Agency verify that India’s nuclear facilities complied with international standards.

The report, while weighing the risks of providing uranium to a nonsignatory of the nuclear nonproliferation treaty, also highlighted the benefits that uranium exports to India could have.

“From Australia’s perspective, selling uranium to India would double the size of an export industry, both in terms of income and employment opportunities,” quoted The Guardian.

“Moreover, it will do so in regional and remote Australia at a time when lower commodity prices are having an economic impact on these regions.”

The Minerals Council of Australia (MCA) has welcomed the report, saying that it should clear the way for the early implementation of the Australia–India nuclear cooperation agreement, providing Australia’s uranium exporters with access to the fast-growing Indian market for the first time.

“The report supports the agreement that will cement Australia’s relationship with India,” said MCA executive director for uranium Daniel Zavattiero.

“That would be good news for Australia’s uranium exporters and good news for job prospects in a sector that last year generated more than A$600-million in export income.”

The report estimated that the Indian market could, over time, add A$1.75-billion to Australia’s export income and create several thousand jobs.

India currently has 5.3 GW of nuclear capacity with a fleet of small reactors.  It has a further six reactors under construction totalling 4.3 GW capacity and plans to expand its nuclear energy capacity to 14.6 GW by 2020.  The country aims to supply 25% of its electricity needs from nuclear power by 2050, up from 3.5% currently.

“The conclusion of the cooperation agreement will ensure that Australian uranium will only be used for peaceful purposes,” Zavattiero said.

“The opening of the Indian market, together with the South Australia Royal Commission exploring further uranium mining and potential nuclear fuel cycle industries, will send a strong signal to investors about Australia's long-term uranium potential.

“It also reflects the increasing importance of nuclear power over the coming decades, particularly in our region and for our growing trading partners.”