Australia has been in negotiations over the supply of uranium to India and the talks have been on between both countries for the supply of 1500 tonnes of uranium over five years.
The first shipment of about 250 tonnes of uranium is expected to reach India in eight months, secretary of India’s Department of Atomic energy, Shekhar Basu, told Bloomberg.
Mr. Basu said India was negotiating with at least three Australian companies and the final deal would depend on the price.
India has been very keen to step up its nuclear power production but faces hindrances due to uranium supply crunch. The country’s bid to join the Nuclear Suppliers Group has been recently blocked by China, making it further difficult for India to source uranium.
India has built a number of nuclear power plants in the recent years and some more are under construction. But not having enough uranium to fuel these plants is a concern for the country. Australian uranium for India is a good news.
“From our point of view it is great news because, as you know, India is badly strapped for uranium, particularly because it has not signed the Non-Proliferation Treaty,” Aditi Phadnis, an Indian journalist told The Australian.
“It has very limited sources for uranium and its own uranium program is very, very slow. It has a civil nuclear program for civilian power, but no uranium to fuel it.”
Although, there has been no commercial agreement to yet, but South Australia's minister for trade and investment, Martin Hamilton-Smith said during his India visit that the state’s uranium industry is committed to facilitating the sale of uranium to India.
The minister also said that South Australia was open to investments by Indian companies into a nuclear waste repository which the state is likely to build.
Given India's critical need for nuclear fuel, Australian uranium is likely to further cement the relations between the two countries.
