MercoPress. South Atlantic News Agency

Argentina, Brazil to build joint uranium enrichment plant

Energy dominated the first of two days of talks between the leaders

In a declaration spanning energy, transport and space satellite cooperation, Cristina Fernández de Kirchner and visiting Luiz Inácio Lula da Silva of Brazil, instructed their governments to begin negotiations over the next 120 days toward creating the binational commission.

The agreement did not give specifics on the commission, but the presidents said they would convene a conference of experts before May to discuss strategy. "The strategic alliance between Argentina and Brazil is of the utmost importance," Lula told Mrs. Kirchner after their talks in Buenos Aires. Uranium enrichment provides the fuel needed to operate nuclear plants, but can also be the key to making nuclear weapons â€" a leading concern of Washington regarding Iran's nuclear programme. Argentina, which elicited praise from Washington last year for its role in opposing nuclear proliferation, is a regional leader in nuclear power generation but currently purchases its enriched uranium from other nations. Argentina has two operating nuclear plants and is seeking to bring another online by 2010 â€" and explore other new power sources â€" to meet fast-growing energy needs and stave off recent shortfalls. Brazil has two operating nuclear plants and in June restarted work on a long-planned third plant, stalled since the 1980s by lack of funds. It also has the world's sixth-largest uranium reserves and the largest nuclear power industry in Latin America. Brazil plans as many as seven new nuclear plants to reduce its dependence on oil and hydroelectric power and intends to export enriched uranium. Both countries say their facilities are exclusively for peaceful energy purposes, and both have signed the Nuclear Nonproliferation Treaty affirming that they do not have nuclear weapons. Also yesterday, Lula pledged a steady supply of electricity to Argentina during peak winter months to alleviate sporadic power and natural gas shortages. The agreement also called for other energy joint efforts, including technical and environmental studies for a proposed dam and hydro-electric plant on their shared River Uruguay border. Lula also spoke to the Argentine Congress, where he remembered those "who gave their lives for democracy," and visited the Supreme Court where he discussed with Chief Justice Ricrado Lorenzetti the impact of a prospective Mercosur court on the trade bloc formed by Argentina, Brazil, Paraguay, Uruguay and Venezuela, together with other countries as associates. Later yesterday he met Buenos Aires Mayor Mauricio Macri. Today, the Brazilian president is scheduled to meet again his local and Bolivian colleagues, Cristina Kirchner and Evo Morales, at Olivos presidential residence, with Bolivian natural gas supplies to Argentina and Brazil topping their agenda. Bolivia currently sells Brazil 27-29 million cubic metres of gas a day while Argentina is receiving between 2.5 and three million cubic metres a day, far below the 7.7 million agreed for this year, state-run news agency Télam said. Buenos Aires Herald