Michele Kearney's Nuclear Wire

Major Energy and Environmental News and Commentary affecting the Nuclear Industry.

Wednesday, March 26, 2014

Nuclear Companies in China are looking for Uranium Resources Overseas

Nuclear Companies in China are looking for Uranium Resources Overseas

Chief Executive Officer at Dynatom International GmbH
On March 12th, the blasting construction of Namibia Husab uranium project was kicked off. Which is the largest uranium project that China invested in. It marks that this project enters the stage of mining production.
Namibia Husab Uranium is the world’s third largest uranium deposit with total triuranium octoxide of 286,000 tons.
China’s limited uranium resources cannot meet the future needs of the domestic nuclear power development. In the past few years, China’s nuclear power companies have gone abroad to mine more uranium resources.
At present, CGN has total control of uranium resources of 30.8 million tons in Central Asia, Australia, Africa and other places. And the locked trade volume has reached nearly 80,000 tons, which can meet demand of 30 million-kilowatt units for up to 30 years.
On the opening ceremony, Li Yigang, charge d’affaires of the Chinese embassy in Namibia said that nearly 2.5 billion USD will be invested in the Husab project during the construction period.
In January, 2014, CNNC China Overseas Uranium Industry Co., Ltd, affiliated to CNNC Department of Geology & Mining also participated in the LH project of Australia Paladins Company.
According to data released by National Energy Administration, on December 31, 2013, China operational nuclear power plants have reached the number of 17 units with total installed capacity of 14.83 million kilowatts, accounting for 1,19% of total national power generation capacity. Total of 31 units are under construction, accounting for about 40% of the global construction of nuclear power plants. And installed capacity of 8,64 million kilowatts of unclear power are planned to be added in 2014, a increase of 264% compared to the actual installed capacity of 2,21 million kilowatts in 2013.
However, the lack of uranium resources has become a major obstacle for China to develop nuclear power. According to OECD and IAEA statistics, China identified uranium resources only accounts for 3% of the world.
Public data shows that China has long been a shortage of uranium resources. Currently, the world's leading exporter of uranium is Kazakhstan, Uzbekistan, Namibia, Canada, Niger, South Africa and Malawi. Research report pointed out that in 2011 China imported over ninety percent of uranium from Kazakhstan, Uzbekistan, Namibia and Australia four countries.
In addition, an insider from CNNC said that uranium mining costs even higher than the market price due to the relatively low grade of domestic uranium. He also said some foreign uranium companies require a large country like China to help them to develop due to weak operation of uranium.
The nuclear insider also told us that the source of uranium required for nuclear power plants in China comes from mainly three markets. They are: the international futures market, the spot market as well as overseas mining and domestic mining supply itself.

Source:http://www.heneng.net.cn/index.php?mod=news&action=show&article_id=29265&category_id=9

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