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CHINA / National

Australian PM upbeat about nuclear deal with China
(AFP)
Updated: 2006-03-28 19:17

Liu Jieyi, head of the foreign ministry's North American and Oceanic Affairs Department, told reporters two draft texts had been completed and would likely be signed during Wen's four-day visit, which begins Saturday.

Liu stressed the agreements would cover the "peaceful use of nuclear energy" and would be in line with safeguards laid down by the International Atomic Energy Agency.

During two days of meetings and speeches in Canberra, Blair and Howard have repeatedly stressed the strategic importance of helping the rapidly emerging economies of China and India achieve energy security.

Both Blair and Howard suggested nuclear power would offer the Asian giants a cleaner and more sustainable source of energy than the polluting coal and oil-fired stations on which they now rely.

Howard did not rule out lifting a ban on selling uranium to India due to New Delhi's refusal to sign the nuclear non-proliferation treaty, although he said the government was "not contemplating" a change in policy.

He said Australia will send a delegation to India and the United States next month to examine details of a new nuclear agreement between the two countries.

Under the deal, India gains access to US nuclear technology in exchange for it separating its civil and military atomic programs and placing a majority of its reactors under international inspection.

Howard's comments about a possible deal with Beijing raised the prospect of cashed-up Chinese resources companies looking for joint ventures in Australia, sending uranium companies skyrocketing.

Encounter Resources, a company holding exploration rights in parts of Western Australia, was up 40.5 cents or 85 percent at 88 cents.

Toro Energy, which holds uranium exploration ground in South Australia, was up 8.5 cents or 6.6 percent at 1.395 dollars.

Deep Yellow, a Northern Territory explorer, was up five cents or 44 percent at 16.5 cents.

BHP Billiton, which owns one of the world's largest uranium mines at Olympic Dam in South Australia state, rose seven cents or 0.26 percent to 26.85 to a record closing high.

The country's other major uranium producer, Energy Resources Australia (ERA) rose 45 cents or 3.5 percent to 13.75.


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