Australia to Begin Talks on Uranium Exports to China

Australia, the world’s second-biggest uranium exporter, will start negotiations for an agreement to allow uranium shipments to China, which plans to boost nuclear energy fourfold by 2020.

The agreement will set up safeguards to ensure Australian uranium supplied to China is only used for peaceful purposes, Foreign Minister Alexander Downer said today in an e-mailed statement. The ore, used as a fuel in nuclear plants, has traded at $29.50 a pound since July 13, the highest for 23 years.

China plans to build 27 power plants to meeting rising demand for energy, according to the World Nuclear Association. An agreement with China may be concluded in time for Australia to start exporting uranium there just after 2010, Australian Resources Minister Ian Macfarlane said in June.

Bloomberg