India and Australia finally made it with their big nuclear deal which will make it possible for India to source uranium from Australia. On the sidelines of the G-20 summit, the meeting of Indian PM Narendra Modi and newly appointed Australian PM Malcolm Turnbull, the two countries have decided to exchange the instruments of ratification and therefore concluded with this big nuclear deal.
The deal was in work since last three years and on Sunday, in Turkey it finally got its stand. “PM @narendramodi thanked PM @TurnbullMalcolm and described the nuclear agreement as a milestone & source of trust & confidence,” tweeted Vikas Swarup, from the Indian foreign ministry. “With the completion of procedures, including administrative arrangements, the #IndiaAustralia Civil Nuclear Agreement will enter into force.”
This initiative was taken by the then Australian Prime minister Julia Gillard, who promised during a state visit in 2012 to supply uranium to India, which faces severe shortages of electricity and has limited nuclear capacity. Two years later Gillard’s successor, Tony Abbott, signed a memorandum of understanding for “Cooperation in the Peaceful Uses of Nuclear Energy” whereby Australia would become a long-term supplier of uranium to India.
This agreement also highlights that India is the first country to get uranium or yellowcake from Australia. As per the reports of the World Nuclear Association, India currently has 21 operating reactors with a capacity of 4,780 megawatts, or 2 percent of India’s total power supply. The country plans to increase its nuclear capacity to 63,000 MW by 2032, by adding close to 30 reactors at a cost of $85 billion.
The stamped deal with Australia could be quite lucrative for Australian uranium producers and uranium mines, which include BHP Billiton’s (NYSE:BHP) Olympic Dam, Ranger, Beverley, Four Mile and Honeymoon.
MEA spokesperson Vikas Swarup said PM Modi thanked Turnbull and spoke of “trust and confidence in each other.”
