In a speech delivered yesterday, the Prime Minister of Australia, John Howard, signalled a nuclear boost, saying that Australia cannot stand aloof from future developments surrounding nuclear power, especially as the county has the world’s largest uranium reserves.

The PM also said that “Nuclear power has no direct carbon dioxide emissions and is already a significant part of the world’s energy system” in his speech entitled, “Climate Change: The Right Balance For Australia”.

He also said: “Improved economic competitiveness and safety of nuclear power, along with concern for energy security and climate change, are leading to a steady increase in worldwide nuclear power capacity.’’

We have long said the Australia will come around to nuclear power and uranium mining and this latest speech by Prime Minister John Howard is another step towards Australians accepting nuclear power and uranium mining. Mr Howard announced that the Australian government would be spending $12.5 million on a Nuclear Collaborative Research Programme between the Australian Nuclear Science and Technology Organisation and the university sector.

A key part of his speech in our opinion was that when talking about Australia’s climate change policy, Mr Howard said: “It needs to reflect our unique vulnerabilities and particularly economic strengths.”

Economic strengths? You cannot be in a much stronger position in the nuclear industry than having the worlds largest uranium reserves. Is this an indication that the government intends to use its “strengths” to combat climate change? Will Australia use its massive strength in its uranium reserves to combat climate change?

Even if Australia does not build any nuclear power stations, by opening the uranium mining industry they will be able to generate massive revenues and taxes and therefore could use this money to buy or build solar panels, hydro electric dams and other renewable energy sources.

Australia and the USA were the only two countries that did not ratify the climate change treaty, the Kyoto Protocol.

Perhaps now they will make up for it by either building carbon free nuclear plants, or allowing uranium mining so other countries can fuel their carbon free nuclear power plants.

We think that it is only a matter of time before the Australian government allows uranium mining and that is when our Australian uranium stocks will benefit greatly.