Uranium Resource Competition Heats Up
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By Melissa Pistilli-Exclusive to Uranium Investing News
A look at India’s latest agreements with uranium-rich nations around the globe and China’s swooping up of yet another uranium miner paints a telling picture of the frantic race to secure long-term supplies for a new generation of nuclear power plants.
Both India and China have plans to aggressively ramp up their nuclear power generation over the coming decades, and the domestic supplies of both Asian nations are insufficient to meet demand.
At present, China has 11 operating reactors, 16 in the works and 35 others planned over the next decade. The Asian nation is seeking to expand its nuclear capacity from the current 9 GW to 86 GW by 2020. To do this, it will need to rely on imports of foreign uranium as its domestic supply doesn’t even come close; hence, its aggressive campaign as of late to acquire uranium mines around the world.
India has 17 operating reactors, six under construction and an additional 23 expected to begin production over the next decade. By 2030, the country may be producing as much as 60,000 megawatts of nuclear energy, according to government figures.
The uranium produced from India’s Jaduguda mines in Jharkhand is not enough to satisfy even current demands and attempts to access uranium from other known Indian ore bodies are still in the early exploration phase.
India’s Global Uranium Plays
Since the three-decade long ban on uranium exports to India was lifted in September of last year, energy-hungry India has been making uranium and nuclear agreements with Russia, France, Kazakhstan, Niger, Namibia and the US. Negotiations with Canada and Brazil are on the table as well.
It’s reported that India’s state-run Nuclear Power Corp is planning to spend over $1.2 billion to purchase equity in foreign uranium mines.
India and Mongolia entered into an agreement for civil nuclear cooperation this week that will give India access to Mongolian uranium. In return, Mongolia will receive a US$25 million loan from India.
According to the World Nuclear Association, Mongolia has about 62,000 tonnes of recoverable uranium reserves. Of course, India is competing with China, Russia and Western miners for a piece of that pie.
Last week, the former Soviet Union nation of Tajikistan agreed to let India explore the known uranium deposits within its borders. India faces competition from Russia and China who are already exploring for uranium in Tajikistan.
Earlier this month, India signed a nuclear cooperation agreement with the world’s fourth largest producer of uranium, Namibia. Under the agreement, the African nation will supply uranium to India in return for help building nuclear power plants. But, the agreement doesn’t allow India to explore for uranium.
Russia, France and China are also working out uranium deals with African nations such as Namibia and equally uranium-rich Niger.
Canadian Giant Eyes Indian Market
India and Canada are now hammering out a nuclear cooperation agreement that is expected to be completed within the next six months, says George Assie, Cameco Corp’s senior vice-president of marketing and business development.
Cameco announced recently that it is planning to open a marketing office in India next month.
A nuclear cooperation agreement would be mutually beneficial to India, Canada and Cameco. Canada was the world’s largest uranium producer in 2008. Cameco is the world’s biggest publicly traded uranium company and the world’s second-largest producer, accounting for 15 per cent of global uranium production for 2008.
The Canadian company is anticipating a tripling in demand for uranium from India over the next 15 years. “We expect India to be the fastest growing market in the world after China and it is a market where we expect to conduct significant business,” said Assie.
Cameco’s India office will be headed by Chaitanyamoy Ganguly, who has held senior positions at the IAEA and India’s Department of Atomic Energy.
For now, Cameco “isn’t allowed to conduct any business” in India until the nuclear cooperation agreement with Canada is signed, said Rob Gereghty, Cameco manager of External Communications.
China’s Uranium Strategy
Rather than forming agreements with uranium producing nations, China’s uranium supply securing strategy involves buying stakes in uranium mining firms.
The latest acquisition was made by state-owned China Guangdong Nuclear Power Corporation (CGNPH), which has offered Energy Metals Ltd US$71.6 million for a 70 per cent stake in the Australian uranium explorer.
Energy Metals management and 40 per cent shareholder Jindalee Resources have recommended shareholders accept the offer, which is equivalent to a 60 per cent premium over the average stock price of the last three month.
“The board believes that CGNPC’s financial resources, technical expertise and strategic intent to develop its uranium resource portfolio will greatly assist Energy Metals in its transition from explorer to developer and producer,” said Energy Metals’ chairman Oscar Aamodt.
The firm has eight projects in the Northern Territory and Western Australia. Its most important project is the Bigrlyi mine (54 per cent Energy Metals and 42 per cent Paladin Energy), which is in a scoping study phase and expected to commence production within three years.
Australia has become a hunting ground for China as it looks to grab up any available resources it can, especially uranium.
But while the Australian government’s refusal to enter into uranium trade agreements with India may keep out one big energy-starved competitor, China still faces resource acquisition competition from another Asian nation, Japan, whose electricity companies are also aggressively picking up global uranium assets. Remember the $518 million deal with Rio Tinto for its Kintyre uranium deposit in Western Australia last year and the joint venture agreement between Mega Uranium this year.
Tags: Brazil, Cameco Corp., Canada, China, Energy Metals Ltd., France, india, Japan, Kazakhstan, Mega Uranium, Mongolia, Namibia, Niger, nuclear, nuclear capacity, nuclear cooperation, nuclear power, nuclear power generation, Nuclear power plants, nuclear reactor, Rio Tinto, Russia, Tajikistan, Uranium, Uranium demand, Uranium Exploration, uranium exports, uranium imports, uranium investing, uranium mine, uranium miner, Uranium Ore, uranium production, uranium reserves, Uranium Resources, uranium supply, US
September 17th, 2009 at 5:33 am
Pls publish my inquiry (to Uranium Investing News Publisher):09.17.2009
To whom it may concern:
Sub.: Assignment of Regional Director of Operations for Uzbekistan / Kazakhstan Uranium Fields for Geologic Prospecting Works & Equipment Supply to new concentrating facilities
Dear Sirs, Madams,
In view of the recent demands for low-grade uranium ore / “Yellow Cakes” (uranium oxides) for procurement of atomic power plants all over the world and taking opportunity of my previous experience/ work and my previous living in Uzbekistan / Kazakhstan area, I would like to offer my candidature for the position of Regional Director of Operations for Geologic Prospecting Works & Equipment Supply in Uzbekistan/Kazakhstan Uranium Fields.
At present Uzbekistan Government had announced Open Tenders/Bids for the Prospecting Works and Development of 7 main uranium deposits/uranium ore fields. Any company / holding can come up with their proposals for prospecting works /operations in terms of its volume of works, timeframes of deposit development and cost estimations. Proposals have to be ready and presented for Tenders to Uzbek “GosComGeo” Committee at the beginning of March 2010.
FYI: Uzbekistan keeps the 7th place in the world for uranium oxides production (5,5%), quickly catching up with Niger 6th place (7,4%) and Namibia 5th place (7,5%), but not having atomic industry himself. Historically all concentrated uranium U-238 & U-235 from Uzbekistan were transported to Russia and Kazakhstan smelters for enrichment and processing during Soviet times (first Soviet nukes in 1950th were done from Uzbek and Tajik uranium). After 1991 Uzbekistan obtained independence as a state and started looking for new customers to bit dependability and monopoly of Russian Federation on its market, diversify clientele’ and decrease dependability on long-term contracts and obligations, thus entering the world’s market economy rules of demand and supply game. At the moment the bulk sales of ore is going through “Nukem Inc.”(USA), with the support of German credit of “Nukem GmbH”.
There are more than 40 known uranium deposits in Uzbekistan, from which 27 had been proven to have solid quantities, low depth, high quality grade (11%-14% and 17%-23% of uranium oxides on average), close to those of Athabasca Basin in Saskatchewan (Canada). With the cheap local manpower / labor and comparatively high quality education of local mining engineers, mining workers and surveyors (most of whom are Moscow and St. Peterborough graduates) and availability of open pits mining in some places, as well as underground, and in-situ leaching of old Soviet halids stockpiles, and bore-hole mining Uzbek Uranium Ore Reserves becoming very attractive and economically viable up to less than < $ 43-45 / lb USD. There are also plenty of those which could be classified and considered as reasonable mineral prospects for economic extraction. Among the open data available through the Uzbek “GosComGeo” Committee – Committee on Geology and Mineral Resources of Uzbekistan (Chairman Mr. Nariman Mavlyanov) and Director of Navoi Smelter Plant (Mr. Kuvandik Sanakulov) in 2007 Uzbekistan produced approximately 2370 tones of uranium ore oxide. Head Smelter is located in near Navoi City (GMZ-1), with the other 3 main enterprises located in the surrounding areas of Uch-Kuduk and Zerafshan cities. At present Navoi Smelter is actively searching for investors and equipment to increase its operations and production facilities. Another enterprise is quickly growing for the production of H2SO4, to increase in-situ leaching and bore-mining extraction.
Among the most interesting fields are “Kalmakir” deposit, which belongs geographically to Almalik Smelter (prospecting works by Korean companies), “Kokpatas” (Mitsui & Co.), “Chetvertoye” (Sojitz Co.), “Rudnoye” (Itochu Co.), “Aktau” (RosAtom, Russia) and some new developments like “Northern Kamineh”, “Surgali deposit”, “Ketmenchi” deposit, “Meilisai”deposit, “Tutlinskaya ploshad” deposit, “Alendi” deposit. There would be soon a huge demand for mining equipment for the development of this new deposits, in particular crushers, drilling equipment, vertical sandwich conveyers, mining trucks and backhoes, fuel trucks, tires, blasting materials, chemicals for leaching process,etc. The idea of Uzbek Government is to increase production of uraium oxide for 150%-170% in 2012.
I’m asking Your Authorities to consider my candidature for Regional Director of Operations for Uzbekistan /and potentially for Kazakhstan Uranium Fields for Geologic Prospecting Works & Equipment Supply to new mines/concentrating facilities, having in mind my special qualifications and abilities:
1.) Graduate of Tashkent State University : “Business Administration & Management” 1983
2.) Previous experience/work with Uzbek goldmining (Procurement of Equipment) 1993-1999
3.) Knowledge of Uzbek Local Authorities & Committee staff (psychology and business)
4.) Organizational abilities to manage staff, office control, discipline and generate revenue.
5.) Knowledge of mapping, prospecting, collection, analyzing and synthesis of incoming and outgoing info torrents about current trends and demands in the regional markets.
6.) Knowledge of conversational Uzbek / Kazakh, technical Russian, English.
7.) Knowledge of local environment, simple accounting, local banks, currency conversions.
In case if Your Authorities are interesting in my candidature, please feel free to send me Your Job Offer Package at apekinasov@cogeco.ca or relay my job application to proper Authorities.
Sincerely, Andrei Pekinasov