India offers great opportunity for Australian uranium sales: Dr Vanessa Guthrie

Interview with Managing director, Toro Energy

Australian uranium company Toro Energy is engaged in talks with the Indian public and private sector companies for a possible tie-up in uranium supply, trading and transfer of skill and knowledge strengths in uranium mining.

In an interview with Sanjay Jog, Toro Energy Managing Director Vanessa Guthrie, who is also a leading member of the India-Australia Prime Ministers’ CEO Forum participating in the Australia Business Week here, spoke on a number of issues.

Can you update on the progress made by India and Australia after signing the civil nuclear cooperation agreement in September last year?

Signing of the civil nuclear agreement in September last year was really a watershed for the Australian uranium sector. It has provided us with an opportunity to open a new market that is India. With the deal in place we can now build on negotiations for the Free Trade agreement between the two countries and make sure that the relationship is reconnected.
 
For Toro Energy, the opportunity is exciting. We are currently focused on the development of a flagship Wiluna uranium project, for which the company has secured mining approval and also clearance for starting the construction. We are ready to bring the product to India. India offers a very significant opportunity for sales of Australian uranium.

Have you initiated discussions with Indian public and private sector companies for a joint venture?

Australia has started talks to build relations with the Nuclear Power Corporation of India Ltd and Uranium Corporation of India Ltd. Besides, we have also launched negotiations with some private sector companies including Reliance Industries and Aditya Birla Group having interest in the uranium trading into India with the Nuclear Power Corporation of India Ltd and Uranium Corporation of India Ltd.

Uranium Corporation of India Ltd owns uranium resources in India. The role of Australian investors including Toro Energy is to be able to provide skill and knowledge strengths. Australia has been mining uranium since a long time. We know how to do it, how to manage an environmental and radiation protections, we know how to regulate and control uranium operations. So we would see most role that we can play provide knowledge and skill transfer in India's uranium mining. So far there has not been any MoU which has been signed but with the civil nuclear agreement in place this will be possible in due course of time. This apart, talks are also progressing with Indian companies for investment opportunities in coal and iron sector too.

How much uranium export from Australia to India is estimated by 2018-19?

During the fiscal 2013-14, Australia has exported about 6,000 tonne of uranium worth Australian dollar 622 million. We have the potential to increase it to almost 9,000 tonne worth Australian dollar 1 billion by 2018-19. In that proposed 9,000 tonne, Toro Energy's share will be 1,000 tonne. None of it is so far has been committed to India.  

What are the impediments do you see the Indian government needs to remove to promote investments especially in the nuclear and uranium sector?

With India and Australia now have inked civil nuclear cooperation deal, both the countries will have to soon finalise the administrative arrangements which is the protocol for exchange of material. It is currently underway. The prime ministers of both the countries have set an ambitious target of December 2015 to sign FTA and they also have given due priority to soon put in place administrative arrangements for nuclear cooperation. We do not see any impediments. Modi's commitment to bring low carbon energy in India's power sector is very strong and we also see clear picture for energy sector.

India is a good natural market for Australia. We in Australia have suffered under investments for many years due to government policies but in last 10 years there has been shift and policies have become much more open so also the mining sector. We have the largest resources as Australia holds 34% of global uranium resources. However, Australia's uranium export in global exports is mere 11%. There is an opportunity for growth in India's nuclear power sector and it is matched with the growth in Australia's uranium exports.

Global nuclear players have raised concerns over India's civil nuclear liability regime. Do you see it as one of the major roadblocks?

Not at all. This is an internal Indian government and community issue and we expect it will be resolved with the Modi's great development vision.