07.09.2007 // RIA Novosti

Australian uranium may bring Tenex additional contracts worth $3bln

Potentially, this agreement may bring contracts with Japan — $2bln within 2008–2015, $400mln with Europe (unless France remains the only European country developing nuclear power engineering), $300mln-400mln with the United States. On the whole it may bring additional $3bln, the acting director general of Techsnabexport (Tenex) Aleksey Grigoryev said in Sidney on Friday.

According to the nuclear energy cooperation agreement signed in Sidney on Friday, Australia – the biggest uranium power in the world – will supply uranium to Russia for processing and use at local nuclear power plants.

The former Russian-Australian agreement was signed in 1990 and allowed processing of Australian uranium in Russia for third countries only. “This deal will help us to develop our uranium export to western-design NPPs,” Grigoryev said.

He specified that Russia might supply low-enriched uranium to power plants in Japan, the Untied States and Europe.

Many Japanese companies buy uranium in Australia. Since Tenex is actively developing its processed and enriched uranium export, this is a good opportunity for that company to increase its share on the Japanese market. 

Grigoryev hopes that Russia will shortly agree with the United States on the terms of low-enriched uranium supplies to that country.

He believes that the agreement will significantly enhance the competitiveness of the Russian low-enriched uranium producers on the above-mentioned markets. Presently, the Australian uranium imported into those countries is enriched by US and trans-national corporations. “The market of uranium and its enrichment services will be growing,” Grigoryev said.

Grigoryev said that the key potential recipient is Japan. The United States may also buy the uranium. However, that country still preserves its restrictions on low-enriched uranium from Russia. “We have made no natural uranium purchase contracts with Australia yet, we just have a framework agreement,” Grigoryev said.

The Russian-Australian agreement also says that Russia may provide Australia with technological assistance if the latter decides to develop its nuclear power sector.

Grigoryev said that Australian uranium may serve as a reserve while Russia will be developing new deposits. However, for the moment Russia has enough own uranium for its nuclear power plants.

Grigoryev hopes that the parliaments of both countries will ratify the agreement by mid 2008.