NEWS.AZ COMMENT: The U.S. pushes Australia toward nuclear energy

NEWS.AZ COMMENT: The U.S. pushes Australia toward nuclear energy

The United States has proposed supplying uranium to Australia for nuclear energy production. The offer was made in a manner characteristic of the current administration. Speaking at the Alliance for Responsible Citizenship (ARC 2025) conference in London on Monday, U.S. Secretary of Energy Chris Wright stated, “I would love to see Australia step into the uranium supply game, and perhaps even pursue its own nuclear path.”

Wright’s comment came in response to a question from Sky News about whether Australia could become a key part of the nuclear energy supply chain and whether the U.S. was prepared to collaborate on energy security. “Australia is a country of vast natural resources and remarkable human spirit,” he noted. Wright also praised the country’s recent shale gas developments, calling it a “tremendous resource that can improve Australians’ lives.”

Wright’s remarks on alternative energy were also noteworthy. He dismissed the notion of a clear distinction between “clean” and “dirty” energy, stating: “It is completely misguided to think that there is some pure energy and some dirty energy. There are good things and bad things. The world just doesn’t work that way.”

Australia may not need much convincing to join the nuclear club—though there are some nuances.

Recently, opposition leader Peter Dutton unveiled a 311 billion AUD ($211 billion USD) plan to integrate nuclear power into the country’s energy mix. This proposal could significantly reshape Australia’s energy policy and provide a major boost to its uranium mining industry.

The plan envisions the construction of seven nuclear power plants by 2050, with the first expected to be operational by 2036. Dutton regards nuclear energy as the “cornerstone of Australia’s economic future.”

Despite its vast uranium reserves, Australia’s uranium mining industry remains underdeveloped. The country is the world’s fourth-largest uranium producer and holds one-third of the planet’s known uranium reserves. However, uranium mining is banned in Western Australia and Queensland, two states with substantial deposits. Even in areas where mining is permitted—such as Olympic Dam, the world’s largest known uranium deposit—operations remain limited. Other mining sites are nearing depletion.

Yet, the Australian government appears hesitant to embrace nuclear power, holding firm to its decarbonization commitments. Minister for Climate Change and Energy Chris Bowen warned that the proposed nuclear plan would jeopardize Australia’s ability to meet global climate targets, calling it a “dangerous mistake.” He cautioned that it could leave Australians without adequate energy supplies.

Supporters of Dutton’s nuclear plan argue that lifting mining restrictions is a logical next step to ensure stable domestic uranium supplies. The Minerals Council of Australia has long advocated for lifting mining bans and positioning the country as a global energy leader.

The debate is ongoing. In what appears to be an effort to accelerate the discussion, Washington has now made its stance clear: the U.S. would be particularly pleased to see Australia take a more active role in nuclear energy.

The uranium debate has been gaining momentum since last year. At least five American uranium mining companies have resumed operations in Wyoming, Texas, Arizona, and Utah—regions where mining was active before the Fukushima-1 nuclear disaster in 2011.

In 2019, U.S. uranium production hit a record low of 174,000 pounds (85 tons)—a drastic decline from its 1980 peak of 44 million pounds (22,000 tons). During this period, the U.S. nuclear industry survived largely through imports from Canada, Australia, Kazakhstan, and Russia.

The Fukushima-1 disaster caused uranium prices to plummet as countries like Germany and Japan began phasing out nuclear energy. In April 2023, Germany shut down its last three nuclear reactors—a move that has drawn fierce criticism from the opposition.

Today, the landscape is changing. Nuclear energy is once again on the rise, but uranium production still lags behind surging demand.

About two-thirds of the world’s uranium supply comes from Kazakhstan, Canada, and Australia. The first two nations account for half of global uranium exports and are now ramping up production.

Today, the situation is changing rapidly. Interest in nuclear energy is once again on the rise as countries around the world seek stable and environmentally friendly energy sources amid the fossil fuel crisis and growing geopolitical instability. However, uranium production still lags significantly behind the surging demand, leading to supply chain constraints and increased competition for resources.

With two-thirds of the world’s uranium supply coming from Kazakhstan, Canada, and Australia, the pressure is mounting for these key players to ramp up production. Kazakhstan and Canada have already announced expansion plans, positioning themselves as primary suppliers in the global nuclear market. Meanwhile, Australia remains at a crossroads, weighing its vast uranium potential against domestic political resistance and environmental commitments.

The U.S. push for Australia to take a more active role in nuclear energy underscores Washington’s strategic interest in securing a stable uranium supply while reducing reliance on Russian imports. If Australia embraces this shift, it could not only strengthen its economic position in the global energy market but also reshape the future of nuclear power across the Asia-Pacific region. However, whether Canberra will seize this opportunity or remain hesitant due to longstanding anti-nuclear policies remains an open question.

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