India will buy Australian uranium for power generation, adding a long-term buyer for BHP's Olympic Dam output and confirming demand for Cameco's shipments.
Australia agreed to sell uranium to India for power generation, ending more than a decade of negotiations. The deal was signed during Prime Minister Narendra Modi's visit to Melbourne. India will purchase the ore for “exclusively peaceful purposes,” the Ministry of External Affairs said Thursday.
The two countries signed an initial nuclear cooperation pact in 2014, soon after Modi became Prime Minister. A sample of Australian ore was examined at India's Nuclear Fuel Complex in 2017, which found it needed more processing to match grades from other suppliers. The revival of the agreement signals India's push to expand nuclear generation capacity more than tenfold to 100 gigawatts by 2047. Social and environmental hurdles at domestic mines make imports necessary, the government has said.
India currently imports uranium from Russia and Uzbekistan. Shipments from Canada's Cameco Corp. will start next year under a deal signed in March. The Australian supply adds another long-term source.
Australia holds the world's largest uranium reserves but only three operating mines, all in South Australia. Several other states ban mining over proliferation concerns. The country ranks fourth globally in production, with exports worth A$1.6 billion ($1.1 billion) in the 2025-2026 financial year.
The largest producer is BHP Group Ltd., which extracts uranium oxide as a byproduct from its Olympic Dam copper mine in South Australia. A company spokesperson said yellowcake from the remote mine is sent to customers in France and Canada, with the US also a significant market. India's entry as a customer diversifies BHP's sales base.
Spot uranium prices have hovered around $85 a pound this year, down from a February spike to $94, well above the $63 level in early 2025. Prices have been supported by reactor restarts in Japan and new builds in China and India.
For BHP, uranium revenue is a small part of a diversified mining business that includes copper and iron ore. The company's Alpha Score is 68 out of 100, a Moderate rating. Cameco depends almost entirely on the uranium price, reflected in its Mixed 50 score. The Canadian producer's deal with India, signed in March, will start deliveries next year.
Uranium spot prices have held near $85 a pound this year, supported by reactor restarts in Japan and new builds in China and India.
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