China wants to mine our uranium.

Russell Trood sees a role for Queensland.

Queensland has massive reserves of uranium yet its potential wealth is going underdeveloped. The Queensland Bureau of Mineral and Petroleum Resources has identified 32 deposits across the state and several major mining companies, including Summit Resources, Laramide and Maple Minerals have spent and are spending millions of dollars on exploration.

Many of the reserves so far discovered are of commercial potential and several are in the vicinity of some of Queensland's most significant regional towns and cities, notably, Townsville, Mount Isa and Georgetown.

The Valhalla deposit in northwest Queensland is one of the largest uranium deposits in Australia.

Under existing Queensland policy, these resources are destined never to be developed.

The Beattie Government has consistently refused to issue any uranium mining permits, arguing that their development "would undermine the coal industry, which is the subject of billions of dollars in investment and supports jobs, businesses and communities in rural Queensland".

This, to say the least, is a bizarre policy position on the part of the Premier.

Certainly, coalmining makes a significant contribution to Queensland's economy.

It is a contribution that will continue to grow.

The International Energy Agency predicts a 43 per cent increase in the global demand for coal over the next 20 years.

Queensland's coal industry will be a major beneficiary of that growth and the Beattie Government deserves a degree of credit for fast-tracking the new coal terminal off Gladstone to assist with the industry's development.

Given the growing demand, there is little likelihood that our coal industry could be jeopardised by the simultaneous development of our uranium reserves.

In fact, thermal coal which is used in power stations, only accounts for 33 per cent of our coal exports.

The remaining 67 per cent is coking coal, used for the smelting of iron ore and obviously not a competitor for energy.

Beattie's obstructive attitude to uranium development comes at a time of growing world demand for nuclear energy.

The International Atomic Energy Agency anticipates that 60 new nuclear-powered stations will come on stream over the next 10 to 15 years.

The major driver of this demand is China's voracious appetite for new sources of energy.

China has 30 new reactors in the pipeline and is aiming to increase its nuclear power production fourfold over the next 15 years.

India too, is a major player, anticipating 24 nuclear-powered generators in a similar time frame.

This increasing demand for uranium has pushed the price of uranium to 30-year highs.

Prices have doubled in the past 18 months, from $20 a pound to $39 a pound.

Australia has benefited from this, earning $364 million in 2004-05 from uranium exports – an increase of 30 per cent from the previous year.

Using Australian uranium to fuel China's (or anyone else's) nuclear program is a cause of concern to some within our community.

China, of course, and now India already have nuclear weapons, so concerns over proliferation have little merit.

Australia also has one of the strongest nuclear safeguards regimes of any uranium supplier around the world.

All customers of Australian uranium are required to sign up to this regime, which not only restricts Australian uranium to civilian uses but prevents further on-selling to countries without safeguard agreements.

There is no compelling need at this stage for Australia to develop its own nuclear power industry.

Many countries, however, have an increasing need to supplement their energy supplies with nuclear power.

This is one of the cleanest forms of energy generation and, despite the anxiety over its safety several decades ago, has proven to be a reliable and secure method of supply.

Some progress also is being made on ways to meet the challenge of nuclear waste disposal.

Queensland has the potential to develop a significant 21st-century industry around its abundance of uranium reserves.

Beattie's "only over his dead body" response to the development of this major opportunity reflects three things.

As well as a disdain for the thousands of jobs that could be created were it to move forward there is also contempt for the regional communities whose long-term sustainable futures could be assisted by development.

And it betrays the neglect of an opportunity for Queensland to assist the international community in meeting one of its greatest challenges – clean energy supplies.

Queenslanders have every reason to expect more of the Premier of the so-called "Smart State".

He should follow the growing body of opinion in the Labor Party in support of further uranium exports and allow mining to proceed immediately.

Source: Courier Mail