New Delhi needs fuel for ambitious nuclear reactor new-build programme
Australia and India have signed an agreement to export Australian uranium to India for use in the south Asian nation’s expanding nuclear energy industry.
“We have signed an important agreement today on nuclear energy,” Indian prime minister Narendra Modi said on 9 July after talks with his Australian counterpart, Anthony Albanese, in Melbourne.
“This will pave the way for uranium supplies from Australia to India and give our clean energy objectives fresh momentum.”
A joint statement said the arrangement allowed long-term uranium exports for “exclusively peaceful purposes”.
The deal is expected to provide a boost to Australia’s mining industry while helping India meet the target of installing 100 GW of nuclear energy capacity by 2047, an ambitious target from around 7.7 GW today.
New Delhi has said its next step on the road to the 100 GW target is to hit 22 GW of nuclear power by 2032.
India operates 23 commercial nuclear reactors and has eight under construction.
The government recently enacted the Shanti Act, a major reform designed to facilitate greater private sector participation – including foreign investment – in India’s nuclear energy sector.
The Shanti (Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India) Act ended the state monopoly on nuclear power in India, permitting up to 49% private and foreign equity in civilian nuclear projects.
The Nuclear for Australia (NFA) lobby group had said Modi’s visit was an opportunity to reopen discussions about how Australian critical minerals like uranium could help fuel clean energy solutions around the world.
According to NFA, Australia is home to the world’s largest known uranium deposits and is perfectly placed to capitalise on increasing global interest in uranium to fuel nuclear energy.
The group said removing policy barriers would allow more states and territories to participate in the uranium cycle, positioning Australia as a major uranium exporter.
Only one Australian state, South Australia, and one territory, the Northern Territory, allow uranium mining.
In May the New South Wales legislative council, or upper house, voted for a bill to lift the prohibition on nuclear energy and uranium mining in the state. The bill now awaits debate in the legislative assembly (lower house), where it faces resistance.
