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House of Assembly - Fifty-Second Parliament, First Session (52-1)
2011-10-20 Daily Xml
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URANIUM MINING

Mrs VLAHOS (Taylor) (14:18): My question is to the Premier. Can the Premier advise the house whether uranium sourced in South Australia may be marketed in future to India?

The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:18): This government has long recognised—

Mr Williams interjecting:

The SPEAKER: Order, the deputy leader! Be quiet.

The Hon. M.D. RANN: —the importance of the development of strong economic, educational and cultural ties with India, as an emerging giant in our region. Our strategy of engagement with India—including my own seven visits to the nation, along with many other ministers and trade delegations—I think has reaped significant benefits, with trade, education and migration links stronger than they have ever been before. Indeed, our highest number of migrants at the moment is coming from India for the first time, ahead of China and Great Britain.

In 2010-11, South Australia exported $714 million worth of goods to India, making it our fourth-largest single export market behind China, the United States and Malaysia. Export growth is being fuelled by India's strong demand for the minerals imperative to its fast-growing manufacturing industries such as copper, lead and coal.

Services to India are also expanding, with India our number one source country for international students and a growing tourism market. India, as I mentioned, now provides more migrants to South Australia than any other country. The relationship with India is also growing at a national level. Total trade in goods and services between Australia and India has risen to over $20 billion and India is now Australia's fourth largest goods export market. India has been one of the world's fastest growing economies since 1994. In recent times, demand for our goods and services from growing countries in our region, such as India and China, has protected us from downturns of other key trading partners. Strong economic growth in India benefits Australia and we should encourage this continuing growth.

Ongoing high levels of economic growth in India will require energy and security, and nuclear energy is undoubtedly a key component of this for India. Given Australia's—particularly South Australia's—abundant supplies of uranium, it is understandable that there would be interest in aligning India's energy security needs with Australia's natural resource exports. Australian uranium reserves are the world's largest, with Australia having at least 38 per cent of the world's known low-cost recovery uranium resource and, with the opening up of the Woomera Prohibited Area for mining, I would expect that our world share will become even greater still.

The majority of this resource, of course, is hosted by the Olympic Dam mine in South Australia. Obviously not all of these reserves are currently being exploited, but in 2010-11 Australia produced 7,300 tonnes of uranium oxide, with South Australia producing 59 per cent of this. In 2011, it is estimated that South Australia will account for around 13 per cent of world uranium oxide production. With the Olympic Dam expansion leading to a massive increase in uranium production, there is no doubt that South Australia will be the dominant player in world uranium.

Current national Labor Party policy prohibits the export of uranium to India as it is not a signatory to the nuclear non-proliferation treaty, and I have publicly supported this policy. Whilst it is paramount that Australia-sourced uranium is used only for civilian and non-military purposes—

Members interjecting:

The SPEAKER: Order!

The Hon. M.D. RANN: —I now believe that this can be achieved through some other means. There are a number of reasons why this policy should be actively debated and discussed at the forthcoming Labor Party National Conference in December.

India is a strong and stable democracy with a good history of nuclear non-proliferation in terms of technology being exported to other states. India has entered into an agreement with the United States providing for the civilian use of nuclear energy. Other countries with exemplary records, like Canada, are negotiating similar agreements which essentially enshrine the equivalent of nuclear non-proliferation treaty safeguards. It is a country expanding at a rapid rate, which requires a stable source of energy. Nuclear energy can provide this, limiting CO2 emissions and decoupling energy growth from carbon emissions.

Australia is a close partner of India in all other respects. It is natural that, given our abundant energy resources, we play a part helping them address their energy needs. There is a need for debate on this issue. We should explore a tough and transparent system involving verification, enforcement and sanctions—and I want to emphasis 'sanctions'—which would enable uranium exports to India under a very strict bilateral agreement—

Members interjecting:

The SPEAKER: Order! Members on my left will hear the Premier in silence.

The Hon. M.D. RANN: —with all of the required safeguards to ensure appropriate and secure civilian use. As commonwealth democracies, Australia and India share a common history, similar legal systems and many similar institutions. It is natural that Australia should consider the world's largest democracy a close ally. Australia and India should be working together to advance our common strategic interests.

Energy security is a key part of this, and I would certainly welcome a discussion of these issues at the national conference this year. Just as we export uranium to China under the strictest safeguards, we should consider adopting a similar position with India.

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