Uranium producer Paladin Energy says any Federal Government intent to supply more uranium to India is undermined by the fact that production is banned in the key resource states of Queensland and Western Australia.

The company, which boasts Queensland’s largest deposit across tenements in the Mount Isa district, released a statement after news of a deal between Australian Prime Minister Anthony Albanese and Indian leader Narendra Modi.

Given mining bans in key states, a Paladin Energy (ASX: PDN) spokesman said an agreement with India effectively benefited a small group of incumbent producers in South Australia.

“Paladin Energy holds significant uranium resources in Queensland and Western Australia and we are optimistic that Federal Government support for additional uranium exports will send a strong signal to those states to reconsider their bans in the near future,” he said.

“Without a change in approach from Queensland and Western Australia, the benefits that could arise from an agreement with India are limited.

“While the Federal Government’s interest in uranium exports is encouraging, Paladin’s production and growth plans are focused offshore in the key mining jurisdictions of Canada and Namibia, both of which are highly supportive of uranium production.” 

Image at top of page: Paladin Energy’s Langer Heinrich uranium operations in Namibia

Katter’s Australian Party leader Robbie Katter last month moved a motion in State Parliament noting that world demand for uranium was forecast to triple by 2040 and calling to end Queensland’s policy of no mining or exporting of uranium.

Queensland Natural Resources and Mines Minister Dale Last countered Mr Katter’s pro-uranium motion with an amendment that broadly noted Queensland’s vast natural resources and praised the government’s energy policies. This amendment was passed.

He told News Ltd recently that the government would not shift its stance on the issue.

“Uranium mining is not part of our plan for Queensland,” Mr Last said.

“We’re focused on strengthening Queensland’s resources sector by streamlining approvals, cutting red tape, and providing certainty for investors in new and existing mining projects.”