Australian Opposition Goes Nuclear, $211 Billion Plan Could Open Doors For Uranium Miners

Australia's main opposition has proposed a $211 billion taxpayer-funded nuclear power plan. If successful, the turn to nuclear power would be a historic event for one of the largest global commodity producers.

"Nuclear power will underpin the economic success of our country for the next century. This will make electricity reliable. It will make it more consistent. It will make it cheaper for Australians, and it will help us decarbonize," Peter Dutton, leader of the center-right Liberal Party, said per Bloomberg's report.

The country's approach to climate change has been politically charged, contributing to the downfall of former Prime Minister Scott Morrison in 2022. Australia remains one of the largest per-capita polluters globally, and Dutton's proposal directly challenges the ruling Labor Party's renewables-only strategy.

He called Labor's plan costly, citing claims that a balanced energy mix, including nuclear, would save taxpayers and businesses $167 billion. Australia has no operational nuclear power plants, as the industry was banned in 1998 under the Environment Protection and Biodiversity Conservation Act. 

Despite Australia's position as the world's fourth-largest producer and holder of one-third of global reserves, uranium mining remains banned in Western Australia and Queensland. These restrictions persist even as the Minerals Council of Australia advocates for lifting bans to help meet global clean energy demand.

Currently, the active uranium mining operations exist at just 3 locations:

• Olympic Dam – the largest known deposit in the world, owned by BHP BHP
• Four Mile – a high-grade mine owned by Quasar Resources.
• Ranger (Northern Territory) – controlled by Rio Tinto RIO, but at the end of its lifespan.

Dutton's plan includes constructing seven nuclear power plants by 2050, with the first operational by 2036. If it goes through, it would be reasonable to expect the removal of mining restrictions, presenting opportunities for domestic and foreign uranium explorers. If Western Australia lifts the mining ban, operators like Toro Energy and Paladin Energy could pursue multiple regional projects.

The largest publicly traded uranium producer, Cameco CCJ, owns the Yeelirrie project in the region, which it acquired from BHP in 2012.

Volatile energy costs in Australia have been an issue exaggerated by significant regional disparities. In October, The Guardian reported a price of $114/MWh in Queensland compared to $201/MWh in South Australia, as high transmission costs can constitute 40% of an energy bill.

A network of strategically placed nuclear power plants would help solve this problem, reducing the cost of commodity production and further strengthening the Australian industry. As the 2025 general elections draw closer, nuclear power and uranium mining will likely become important topics down under.

Read Next:

• Lithium Producers Brace For Prolonged Oversupply, Stalled Prices

Photo by metamorworks via Shutterstock