By Melissa Pistilli-Exclusive to Uranium Investing News
In a bid to keep up with nations like China and Japan in the race to secure uranium supplies for nuclear energy, India has been busy forming ties with uranium producing countries.
India is looking to ramp up its nuclear energy output to meet demand; however, its domestic supplies are limited and India will have to rely on imports to meet its needs.
Since the Nuclear Suppliers Group (NSG) began allowing trade in nuclear fuel and technology with India in September and signing an agreement with the US in October 2008 to lift a three-decade ban on nuclear trade, India has signed additional agreements with Kazakhstan, Russia and France.
On Tuesday, the Nuclear Power Corporation of India Limited (NPCIL) put French and Russian imported uranium to work as it synchronized its Rajasthan Atomic Power Station (RAPS-2) to the grid.
To help with the South Asian nation’s uranium mining ambitions, the US recently offered its technical know-how. “We can certainly explore options and opportunities available,” said US Consul General Beth Payne. “Maybe we can partner with the government and share our experience and expertise on how to mine uranium safely.”
The US has also extended an offer of scientific partnership in aiding India in developing its nuclear capacity. “We see India as a responsible non-proliferator. We would like to help India develop its civilian nuclear capacity because it is a viable form of clean energy,” said Payne.
The forty-six member Nuclear Supplier Group that oversees global atomic business granted an almost unheard of exemption last year, allowing for the sale of nuclear fuel and technology to India.
The exemption raised eyebrows because India has refused to sign the Non-Proliferation Treaty (NPT) and has nuclear weapons.
Under the NPT, only five nations can have nuclear weapons and those slots are taken by the US, Russia, the UK, China and France. To sign the treaty would involve giving up its nuclear arsenal, which India isn’t prepared to do.
For many years now, India has been embroiled in a nuclear stand-off with Pakistan. Bad blood exists between the two neighbours and neither is willing to be the first to give up its arms.
While the exemption may have given uranium-producing nations the green light to do business with India, Australia, one of the world’s biggest uranium exporters, is still sticking to its policy not to sell uranium to a non-NPT signatory.
Hence, India has had to look elsewhere for uranium resources.
On Monday, India inked an agreement with uranium-rich Namibia for co-operation in developing the African nation’s nuclear energy industry and uranium sales to India. Uranium import agreements with Kazakhstan and Mongolia are also in the works.
Monday’s agreement with Namibia will give India access to one of the world’s top ranked uranium producers. The African nation is responsible for about 10 per cent of global production and holds about 5 per cent of known reserves.
However, India is competing for those resources with China, Russia and some Western companies.
In a quid pro quo, Namibia is also gaining something from its agreement with India, which includes aid in constructing nuclear power plants and training personnel. “We are rich in all kinds of minerals. A lot of it is unexploited because we do not have skilled people to do that,” said Namibian President Hifikepunye Pohamba.
The Namibian government is hoping to be in a position to supply its own energy from nuclear power by around 2018, according to the World Nuclear Association.
Thu, Sep 3, 2009
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