Australia looking at nuclear generation option

AUSTRALIA - Australia, the holder of the largest-known uranium reserves in the world, will eventually have a nuclear power industry because of increasing energy costs, Prime Minister John Howard said.

The rising price of oil was changing the debate about alternative energy sources, Howard said recently.

Howard joined Bush and Prime Minister Tony Blair of Britain in seeking to expand nuclear power use as prices for coal, gas and oil rise. Currently, 85 percent of Australia's electricity comes from coal.

"Nuclear is simply not a short-term issue for Australia," said Hugh Outhred, an associate professor at the Center for Energy and Environmental Markets at the University of New South Wales. "We don't need for the time being any more base-load power capacity."

Australia's government also wants to expand mining of the nuclear fuel to tap rising global energy demand. Australia, with 20 million people, has no nuclear power plants.

"It is inevitable," Howard said. "I hope that we have an intense debate on the subject over the months ahead."

Howard has previously said adopting nuclear power was not yet needed because of the large coal reserves. The government has said the nation has enough coal to last 1,000 years.

Australia has about 40 percent of the world's known uranium reserves and supplies about one-fifth of all mined uranium from three existing mines.

Howard said allowing nuclear power generation will depend on economic considerations.

Planning and building nuclear power stations would be costly and raise electricity prices in Australia, Outhred, the professor, said.