chinaUranium Supplies Need Greater Consideration in China's Nuclear Plans
By Interfax-China
28 Mar 2008 at 10:20 AM GMT-04:00
SHANGHAI (Interfax-China) -- China must seriously consider how it can manage its future uranium demands in light of its ambitious nuclear power plans and soaring international prices, an industry expert told Interfax at a conference yesterday.
"China has released an aggressive plan for nuclear power development, but no appropriate explanation as to how it will ensure adequate domestic uranium supplies," the expert, who wished to remain anonymous, said.
Released last year, China's nuclear power development plan sets a target of 40,000 megawatts to be obtained by 2020. Zhang Guobao, director of the country's new National Energy Bureau, said recently that with some developments already underway, actual capacity at this time may be as high as 60,000 MW.
At the same time, growing international concern over carbon dioxide emissions has stimulated renewed interest in nuclear power. Supported by China's ambitious nuclear power plans, such interest has pushed up international uranium prices, which hit a record high of $138 per pound last year.
In light of these goals and rising prices, China seems ill prepared to deal with future uranium supply requirements, the expert said. The country mainly relies on domestic uranium sources at present, but this will have to change as demand increases greatly as 2020 approaches.
With an installed nuclear power capacity of 40,000 MW, China would require roughly 7,000 tonnes of uranium on an annual basis, the expert said, and noted that demand would be significantly higher still if capacity was to reach 60,000 MW.
The expert said there is not enough investment in, or policy incentives covering, the nation's uranium exploitation sector, which is monopolized by China National Nuclear Corp. (CNNC) and its subsidiaries.
The Chinese government recently released a notice aimed at encouraging greater interest in the sector, which might help attract investments from private companies and non-CNNC geological exploitation activity.
The notice will attract private interests, and some private operators have already invested in the sector, but such interest and investment is still very small, and it will take some time for it to grow, the expert said.
He noted that some geological-focused subsidiaries split off from CNNC during the 1980s and 1990s as limited demand from the domestic power and military sectors was making it difficult to generate profits from uranium. The expert said some of these subsidiaries have since entered into other mining fields, but that they, or their staff, now have a chance to re-enter the uranium exploration and exploitation sectors.
In regards to overseas exploitation, the expert said China is also moving slowly. Japanese companies moved quickly to snatch up overseas uranium resources, especially in Kazakhstan, while China has lagged behind.
"Japanese companies were quick to buy high-quality reserves in Kazakhstan, while China holds just a few low-quality reserves in the region," he said.
The expert said that China's exploration technologies and methods also need to be improved, and that through such improvements, recoverable domestic uranium reserves may increase.
Last but not least, the expert said that despite China's slow progress so far, the country can still find ways to meet its future uranium demand in a step-by-step manner.
© Interfax-China 2008. For further information regarding Interfax China Commodities Daily Reports, contact David Harman at david.harman@interfax-news.com. Interfax also publishes a comprehensive China Grains & Soft Special Report in March 2008, contact David Harman for details.