Federal govt keen to boost uranium sales - Breaking News - Business - Breaking News

Australia is punching below its weight in the world uranium market despite record prices and escalating demand, the federal government says.

Senior government adviser John Hartwell has told a uranium industry conference in Adelaide that the government remains committed to improving the country's export performance.

"Where uranium is concerned, Australia is punching below its weight," Mr Hartwell said in a speech delivered on behalf of federal industry minister Ian Macfarlane.

"We hold 37 per cent of the world's low-cost uranium resources, worth about $100 billion at today's prices.

"Yet, we continue to lag behind Canada. We remain in second place as a producer of low-cost uranium, even though we have more than twice Canada's reserves."

Mr Hartwell said the government recognised there were good reasons, both economic and social, why the country with the most uranium should also be the biggest exporter.

But he said it was still fair to say that for many Australians uranium was a mysterious substance.

"It is up to the uranium industry to help inform the uranium debate and to demonstrate the many benefits uranium mining brings to Australia by transparently presenting the issues and facilitating dialogue where opportunities arise," he said.

Mr Hartwell said the government regarded the issue of uranium mining as separate to whether or not Australia should use nuclear power.

However, he said it recognised that, in the public's mind, there was a direct link between the two.

In earlier comments to the conference, South Australian Mineral Resources Minister Paul Holloway added further weight to a push for federal Labor to scrap its no new uranium mines policy.

After Premier Mike Rann this week declared the policy out of date, Mr Holloway said it was time for change and he looked forward to a time of increased uranium exploration and development.

© 2006 AAP