Prime Minister Tony Abbott seals deal to allow Australian companies to export uranium to India

Updated

Prime Minister Tony Abbott has sealed a long-awaited deal for Australian companies to sell uranium to New Delhi while meeting with India's prime minister, Narendra Modi.

The pair urged officials on both sides to finalise the details of the agreement quickly.

"It is a reflection of a new level of mutual trust and confidence in our relationship and will open a new chapter in our bilateral cooperation," Mr Modi said.

India remains a non-signatory to the Nuclear Non-Proliferation Treaty and is believed to have stores of about 100 nuclear warheads.

Australia had previously banned the sale of uranium to the country. Under the new deal, shipments could begin within five years.

Uranium sold to India will be intended for power generation and Australian officials are confident there are enough safeguards in place to ensure it is not diverted to a nuclear weapons program.

Mr Abbott said the agreement went ahead because Australia "trusts India to do the right thing in this area".

"India has an absolutely impeccable non-proliferation record," he said.

The Prime Minister's first meeting with Mr Modi was productive and warm.

Both pledged to increase economic and strategic ties and said there was room for improvement in the relationship.

"We are concerned about the decline in bilateral trade in the last two years," Mr Modi said.

Two-way trade stands at $15 billion per year – about one-tenth of Australia's trade with China.

"Prime Minister Abbott has been supportive of Indian investors in Australia and has assured me of speedy clearances for Indian investment proposals in the pipeline," Mr Modi said.

"I invite Australian investments into India, including in infrastructure and high technology areas."

Mr Abbott also used the meeting with Mr Modi to return two statues – including the Dancing Shiva, a 900-year old bronze deity that had been stolen from an Indian temple and bought by the National Gallery of Australia for $5 million.

"I would like to convey to Mr Abbott a deep sense of gratitude from 1.25 billion people of India for the efforts he [has] made to bring with him two ancient statues that were stolen," he said, praising Mr Abbott for their speedy return.

"Prime Minister Abbott and the people of Australia have shown great respect and regard not only for our ancient treasure but also for our cultural heritage."

Mr Abbott said the statues have now been returned to their rightful country of ownership.

"They were taken illegally from India, they are now restored to India, and I have to say as far as I am concerned Australia will never act as a receiver of stolen goods," he said.

Mr Modi will come to Australia for the G20 summit in Brisbane in November, which will be the first time an Indian leader has visited Australia in more than two decades.

Topics: uranium-mining, international-aid-and-trade, foreign-affairs, india, australia

First posted