Foreign Minister Alexander Downer said the move, which came as Japan also slapped fresh sanctions on the Stalinist state, was "consistent with our strong international stand against the proliferation of weapons of mass destruction."

"This supports and complements similar action taken by Japan today and previous actions taken by the United States, and sends a strong message to North Korea," Downer said in a statement.

The companies and the individual targeted by the sanctions were "connected with involvement in financing North Korea's continuing efforts to develop its nuclear and other WMD programs," he said.

A list provided to AFP by Downer's department named 11 North Korean banking, mining, trading, machinery and chemical companies as well as a Swiss-registered company, Kohas AG of Fribourg, and a Fribourg-based individual, Jacob Steiger.

Under the sanctions, Australians are barred from any foreign currency financial dealings with those on the blacklist.

"North Korea's WMD programs threaten North Asia's security and stability, and instability in North Asia would have significant implications for international stability and commerce," Downer said.

"North Korea misguidedly believes that development of a WMD capacity will enhance its security. This is patently untrue. We call on North Korea to recognise this, and to give up its WMD ambitions."

Australia, a close ally of the United States, established diplomatic relations with Pyongyang in 2000 and has played a role in efforts to resolve the North Korean nuclear crisis.

Downer urged Pyongyang to immediately return to the six party talks over its nuclear programme. The negotiations involve North Korea, South Korea, China, Japan, Russia and the United States.

"The way for North Korea to ensure its security is to honour the commitments it made a year ago under the Joint Statement of Principles to abandon all nuclear weapons and programs," Downer said.

He added that the sanctions were in line with UN Security Council Resolution 1695, which condemned North Korea's test firing of seven missiles into the Sea of Japan (East Sea) in July.

Australia summoned the secretive state's ambassador to protest the tests, but Downer and Prime Minister John Howard said at the time China had more influence on Pyongyang than any other country and should bring pressure to bear on North Korean leader Kim Jong-Il.

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