The Australian government confirmed in Canberra yesterday that it would be starting negotiations with China on an agreement to supply uranium for use in nuclear power stations, though no dates for the talks were reported.

"I am pleased to announce Australia will formally commence negotiations on a nuclear cooperation agreement with China," Foreign Minister Alexander Downer said in a statement.

"The agreement will establish safeguards arrangements to ensure Australian uranium supplied to China is used exclusively for peaceful purposes," he said.

Australian and Chinese officials have already held exploratory talks on the proposed agreement, according to Downer.

Australia has an estimated 40 percent of the world's uranium reserves and generates 21 percent of global production; China has great energy needs to meet the demands of its rapid economic development.

"Opening up this export opportunity with China is consistent with the growing trade and economic relationship between our two countries, and Australia's position as a secure supplier of energy resources," he said.

Australia has 19 nuclear agreements involving 36 other countries.

(Xinhua News Agency August 10, 2005)