India and Australia have finalized arrangements to unlock the sale of Australian uranium to India.
“We have signed an important agreement on nuclear energy today,” Indian Prime Minister Narendra Modi said on Thursday. “This will pave the way for uranium supplies from Australia to India and give new impetus to our clean energy objectives.”
The announcement came when Modi met his Australian counterpart Anthony Albanese in Melbourne for the third India-Australia annual summit. The talks aim to strengthen the comprehensive strategic partnership between the two countries including areas such as defence, maritime security, energy security and trade.
“The two Prime Ministers welcomed the finalization and signing of administrative arrangements that will enable long-term Australian uranium exports to India, exclusively for peaceful purposes,” a joint statement said, adding that exports would come under International Atomic Energy Agency (IAEA) safeguards.
The statement said Australia expressed “strong support” for India’s membership of the Nuclear Suppliers Group.
Why is Australian uranium important for India?
Energy-hungry India has long eyed Australia’s uranium reserves – which account for about 28% of global resources – to help meet its target of 100 gigawatts of nuclear power capacity by 2047.
In 2014, the two countries entered into a nuclear cooperation agreement which came into force the following year. However, uranium exports were limited due to concerns about ensuring that nuclear fuel is only used for peaceful purposes such as energy production.
“This arrangement facilitates Australian uranium exports to India, which will help increase the share of non-fossil fuel power capacity,” Albanese told reporters on Thursday.
After meeting Modi he described Australia and India as “close partners and even closer friends”.