By Rod Nickel
WINNIPEG, Manitoba, Sept 10 (Reuters) - Canada's New
Democratic Party views the country's uranium as a "strategic
asset," and would not reverse a rare government decision to
allow foreign ownership of a proposed mine, leader Tom Mulcair
said on Thursday.
The uranium industry is unpopular in Quebec, the NDP's
stronghold heading into next month's election. But it is a key
part of the economy in Saskatchewan, where the party hopes to
add support.
The governing Conservatives in June made an exception to the
country's longstanding policy requiring uranium mines to be
majority-owned by Canadian companies, and approved an
application by Australia's Paladin Energy Ltd PDN.AX .
If the left-wing NDP forms government after the Oct. 19
election, it would not change that decision, Mulcair said during
a Winnipeg campaign stop.
"The federal government has a responsibility to keep a very
close eye on" uranium production, he said. "It's a strategic
asset, but the (Paladin decision) seems to have opened the
possibility for better investment."
Restrictions on foreign companies have reduced opportunities
for companies, including Denison Mines Corp DML.TO and Fission
Uranium Corp FCU.TO , to find buyers for their planned uranium
projects in Canada, the world's second-largest producer.
The radioactive metal produces fuel for reactors.
The Conservative government has said Paladin was unable to
find a Canadian partner for its project in Newfoundland and
Labrador. Saskatchewan-based Cameco Corp CCO.TO is the main
owner of all of the country's uranium mines.
Canada's uranium is a "blessing," but an NDP government
would rigorously enforce environmental rules, Mulcair said.
Quebec's environmental regulation agency said in July that
there was little public support for uranium mining. Strateco
Resources Inc RSCh.V has been developing a project there.
The New Democrats are in a tight three-way race with the
Conservatives and Liberal Party. Polls suggest any of them could
form a government, but would need support from another party to
pass legislation.
Conservative Rob Clarke, who represents the northern
Saskatchewan area where most of Canada's uranium deposits are
located, said uranium is a "critical industry" and Prime
Minister Stephen Harper is the only leader committing to
expanding it. Earlier this year, Canada's Cameco and India
signed a commercial uranium agreement.
Ralph Goodale, the Liberals' only member of Parliament from
Saskatchewan, declined to comment on uranium ownership.
(Editing by Dan Grebler)