China Signs Uranium Deal With Australia

Australia and China signed a deal in Canberra Monday that paves the way for China to buy uranium from Australia for its nuclear energy program.

The agreement was signed by Australian Foreign Minister Alexander Downer and Chinese Foreign Minister Li Zhaoxing, The Australian reported.

Australia only sells uranium to countries that have signed the Nuclear Non-proliferation Treaty as well as a bilateral treaty ensuring that nuclear safeguards will be observed.

Some critics have expressed doubts about China’s ability to enforce such safeguards.

Chinese Premier Wen Jiabao, who is in Australia on a four-day visit and witnessed the signing, told a press conference that the uranium would be used only for peaceful purposes.

Australian Prime Minister John Howard told reporters he was satisfied that safeguards intended to ensure the uranium was not used for military purposes would be enforced.

China plans to build 40 to 50 nuclear plants to help meet its electricity needs in the next 20 years, and Australia has about 40 percent of the world’s uranium reserves, needed to produce nuclear power.