SA plan would lift nuclear latency: study

South Australian plans for a nuclear industry would take Australia well down the path to a nuclear weapons capability, a new study says.

That's termed "nuclear latency" - the potential for a country to build atomic bombs.

"The recent move by the South Australian government to examine nuclear industry development options would contribute significantly to Australia's own nuclear latency," said analyst Michael Malyshev in a paper released by the Australian Strategic Policy Institute.

Premier Jay Weatherill has revived debate on whether SA, home to one of the world's largest uranium deposits, should embrace the production, enrichment and storage of nuclear power to boost its lagging economy.

He has launched a royal commission to examine the possibilities, including creating a repository for nuclear waste.

Mr Malyshev said that in the 1960s, US president John F. Kennedy expressed fear that 20-30 countries could develop nuclear weapons in a few years as nuclear knowledge and technology became more widely available.

To keep track, various international watchdogs such as the International Atomic Energy Agency established the concept of nuclear latency.

No developed nation has zero latency and about four dozen countries have significant nuclear latency. Most, including Australia, are also signatories to the nuclear non-proliferation treaty.

Mr Malyshev said nuclear watchdogs and other entities, including intelligence services, needed to remain vigilant.

"Every potential proliferant nation has to undertake a careful cost-benefit analysis and realise that there'll be hefty downsides to such a decision once the cat is out of the bag," he said.

Mr Malyshev said it would be interesting to see whether the SA inquiry would consider the controversial issue of repatriating spent fuel made from Australian uranium for storage in Australia.

"Today, Australia could offer reliable safeguards for the spent fuel and enjoy a financial benefit from such an arrangement," he said.