India is concluding these uranium supply agreements with multiple countries for two reasons—to diversify uranium import sources and to meet its target of achieving 100 GW of nuclear energy by 2047. India is currently in good standing in securing uranium from multiple sources, which was not the case a few years ago. Against this backdrop, the brief assesses India’s current uranium stocks and future requirements. It situates the India–Australia uranium supply arrangement within broader trends in India’s uranium imports over recent years.

India–Australia Uranium Deal

The IANCA, signed in September 2014 and operationalised in 2015, defines the scope of bilateral nuclear cooperation, going beyond the uranium trade to include the production and application of radioisotopes, the exchange of scientific and technical information, technology transfer, and equipment exchange, among others.[iii] However, the IANCA was not designed to be a self-executing agreement and would need an administrative arrangement to implement it. Foreign Secretary Vikram Misri noted that the administrative arrangement vis-à-vis the uranium trade was concluded but not operationalised due to reporting-related differences between the two countries.[iv]

Australia’s uranium export policy mandates accounting for amounts of Australian-Obligated Nuclear Material (AONM) as it moves through the nuclear fuel cycle.[v] When accounting for the by-products specifically resulting from the AONM, it becomes challenging to identify the source of uranium, as uranium sourced from different countries is utilised as an input in the reactor during a particular nuclear cycle. Thus, with the AA finalisation, reporting procedures and reporting protocols were put in place to satisfy “the expectations of both sides about the supply, the handling, and the accounting and reporting of”[vi] AONM.

The two countries have been closely engaged with each other over the past two years, as a result of which they operationalised administrative arrangements during PM Modi’s visit. However, finalisation of the administrative arrangements is just the first step denoting clearance from both governments. Now, nuclear-related establishments in India will need to enter into agreements with Australian companies engaged in uranium exports.

Article VI of the IANCA talks about the reprocessing and enrichment of nuclear material provided by Australia. It mandates that such reprocessing and enrichment shall be carried out in International Atomic Energy Agency (IAEA)-safeguarded facilities. Moreover, it adds a condition and refers to the modalities described in Article 6 (iii) of the India–US Civil Nuclear Deal,[vii] which gives India an exception to reprocess US-origin nuclear material under specific conditions, such as dedicated reprocessing facilities being placed under IAEA safeguards and a requirement to come up with a subsequent agreement to operationalise Article 6(iii).[viii] Accordingly, India and the US have come up with a separate document titled the ‘Arrangements and Procedures Agreed Between the Government of the United States and the Government of India, Pursuant to Article 6(iii) of Their Agreement for Cooperation Concerning Peaceful Uses of Nuclear Energy’ (Arrangements and Procedures) regarding the implementation of........

© IDSA