Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I thank Senator Milne for that pertinent question. It is timely and appropriate that that matter be raised. I say, on behalf of the government, as we have said on every occasion that this issue has been raised, that negotiating a nuclear safeguards agreement with China is a fundamental precondition to any sale of uranium to China. Any agreement that was to be concluded with China would be entirely consistent with our strict safeguards requirements. It must ensure, as do all our agreements on this matter, that Australian uranium, nuclear technology and expertise are used solely for peaceful purposes. That is fundamental to any negotiation that we undertake with China on this matter. It is hoped that we can negotiate agreements that could be signed during Premier Wen’s visit, and that would include the two agreements on nuclear safeguards and nuclear cooperation issues. As I said, they have to be consistent with our nuclear safeguards requirements.

You have also raised the issue of exploration, and I note that that has been canvassed. At the moment, any private company, domestic or foreign, is at liberty to seek to explore in this country and strike commercial arrangements to do so, but that would be, as is the point of your question, Senator, subject to state and territory legislation, which is the primary vehicle for regulating exploration and mining in this country. It would be subject to consideration by the Foreign Investment Review Board. Any uranium mine that flowed from any successful exploration would be fully subject to Australia’s very strict—probably the strictest in the world—policies in relation to exports and conditions set out in our bilateral safeguards agreement.

We are approaching this negotiation with China on the same basis that we would approach it with any other country in the world. We have probably the strictest regime in the world. It is a regime that ensures that any uranium that is exported from Australia can only be used for peaceful purposes. It requires compliance with IAEA inspections to ensure the verification of peaceful uses and to ensure that there is absolutely no possibility of any diversion to any nuclear weapons programs.

In relation to exploration, as I said, it is a fact that there are many entities exploring and mining in Australia at the moment that have a degree of foreign ownership. The point is that they must comply with Australian law. As I said, much of that is state law. To the extent that the federal government is involved, it is a matter of both the export policies that it applies and the Foreign Investment Review Board consideration in relation to any investment.