Australia Will Export Uranium to Taiwan

Australia confirmed a contract has been signed allowing companies to supply uranium to Taiwan, move that unconcerned China, which also signed a similar contract. Foreign Minister Alexander Downer stated that the mining companies BHP Billiton and ERA had contracts with Taiwan to sell uranium via the United States.

According to the officials, the deal was negotiated with the United Stated in 2002, Canberra not recognizing Taiwan as a sovereign nation under its One China policy. An ERA spokeswoman Tuesday confirmed the contracts with Taiwan. "We've only completed it in the last 12 months and we wouldn't expect to start exports until next year," he said.

"China has always seemed comfortable with the idea. As a matter of fact I understand from my department in more recent times they've said they're pleased that we have this arrangement in place because it strengthens the overall security and safeguards of any civil nuclear industry in Taiwan," Downer said, mentioning that the current contract will not increase tensions between China and Taiwan.

China also signed a contract, allowing Australia to export 20,000 tons of radioactive uranium to China annually, supplying the 40 to 50 nuclear reactors China plans to build in the next 20 years. Australia will have to increase its production capacity to meet the Chinese demand, taking the country probably another 4 years before uranium can be shipped to the mainland.

Robert Ayson, director of the Strategic and Defense Studies Center at Australian National University, denied the possibility of India getting uranium because it has not yet signed the NPT (nuclear nonproliferation treaty).

"Taiwan's situation is a bit different to India's. Taiwan would sign the NPT in two seconds if it had the capability and it's already part of the IAEA (International Atomic Energy Agency)," Ayson asserted.