Sparton Resources Inc V.SRI

Uranium turning up

[mamoth]

The Wall Street Journal put out a report Tuesday titled, “Uranium Draws Interest From China,” highlighting, “Nuclear-power-generation capacity in China is set to increase sixfold by 2020 to 60 gigawatts with a further increase of up to 160 gigawatts expected by 2030, according to the World Nuclear Association. China is already ramping up uranium imports, recognizing that domestic supplies are insufficient to meet its needs. In January, China shipped in around 3,337 metric tons of uranium, with 57% coming from Kazakhstan and smaller volumes from Russia, Namibia and Uzbekistan. Import volumes were up more than 10 times yearto- year. Comments from Chinese executives suggest this may be the tip of the iceberg. Guangdong Nuclear Power's annual uranium needs will jump to 10,000 tonnes in 2020 from 2,000 tons in 2009, Zhou Zhenxing, chairman of the company's uranium-supply unit, said in November.” The Journal also highlighted, “China isn't the only Asian buyer vying for new sources of uranium – Japan, India and South Korea are also keen to lock in supply. But China's access to cheap capital gives it a competitive advantage.”

Extract from Canaccord Morning Coffee