Australia will begin selling uranium to India for peaceful purposes, following the signing of an administrative deal between the two countries' leaders. Australian Prime Minister Anthony Albanese and Indian Prime Minister Narendra Modi announced the agreement Thursday in Melbourne, ending a prolonged stalemate over the nuclear material.
The deal resolves concerns that had held up uranium exports since an initial agreement in 2014, primarily related to the potential for the material to be used in weapons. Specifics regarding the volume and timing of the uranium sales were not immediately disclosed.
Australia possesses the world's largest known uranium resources, but does not utilize nuclear power or weapons, exporting all of its uranium. India, facing a growing energy demand from its large population and expanding middle class, aims to install 100 gigawatts of nuclear power by 2047, a goal that has been complicated by uranium acquisition challenges. Despite doubling its installed nuclear power capacity in the last decade, nuclear energy still accounts for only 3% of India's electricity generation.
India is not a signatory to the Nuclear Non-Proliferation Treaty, which designates specific countries as nuclear weapons powers. Australia, as a signatory, has historically restricted uranium sales to non-signatories. India argues the treaty is discriminatory, as it recognizes nuclear weapons states based on tests conducted before 1967, a criterion that excludes India. Following nuclear tests in 1998, India faced international sanctions and uranium trade restrictions.
In 2008, the Nuclear Suppliers Group, including the U.S., granted India a waiver that permits the purchase of uranium from member nations. India has since pursued bilateral agreements, including a recent pact with Canada in March. Australia had previously stipulated that exports would only occur if India adhered to International Atomic Energy Agency Safeguards and separated its civilian and military nuclear programs. Thursday's administrative agreement is expected to remove these final hurdles.
The uranium deal was announced during Modi's visit to Australia for an annual leaders' summit. The two leaders also committed to enhanced defense and security cooperation in the Indo-Pacific region, describing it as a significant advancement in their bilateral relationship. This pledge for closer regional security ties follows recent criticism by Australia of China's actions in the South Pacific.
India is Australia's fifth-largest trading partner, with bilateral trade in goods and services valued at approximately $37.7 billion Australian dollars for the 2024-2025 financial year. Prior to his visit to Australia, Modi visited Indonesia and is scheduled to travel to New Zealand, where India and New Zealand signed a free trade agreement in April.