Vibs
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It's got nothing to do with egos either. It's about signing the NPT.
Isn't supply of nuclear reactor technology coming in from Russia,France,Canada and USA more answerable to the NPT than Uranium??? Fact is that these plants are already under IAEA observation and only a select few Indian reactors are out of the purview. It is easy to track where the Uranium is going and if it is being procured for plants under the watch of the IAEA, I see no reason for refusal to supply.
It's more of a matter of internal politics within Australia. The party implementing the supply would be slammed by domestic activist groups and may loose a portion of their vote bank.