China will increase the acquisition of uranium

China will increase the acquisition of uranium

China’s largest nuclear group is developing its uranium supply chain for civilian projects in China and around the world.

The state-owned China General Nuclear Power Corporation (CGN) developed its civilian uranium supply chain to meet domestic demand and ensure long-term security of supply,

CGN is becoming a major player on the international scene. The Company has agreements in most of the uranium producing countries, including Namibia, Kazakhstan, Australia and Canada.

This has been part of the company’s development over the past eleven years, “said Yu Zhiping, deputy general manager of CGNPC Uranium Resources, a subsidiary of CGN.

The CGN is one of two companies in the country authorized to import nuclear fuel, along with the CNNC. It operates in 20 countries from its headquarters in Shenzhen, with assets totalling 430.7 billion yuan (54 billion euros).

The group, founded in the 1990s, developed its ties with Kazatomprom after signing in 2010 a ten-year agreement with the Kazakh state enterprise.

In May, CGN announced that it would increase its supply of nuclear fuel, including uranium mining, nuclear fuel pellets and nuclear fuel fabrication, to meet the growing demand for its power plant projects.

Yu Zhiping also confirmed that the nuclear fuel fabrication plant in Kazakhstan, a joint venture between Kazatomprom and CGN, is expected to be operational by 2019:

“The fuel will be used primarily to supply CGN projects in China and abroad. The fuel will also supply the nuclear power plant planned in Kazakhstan. ”

Apart from its close commercial links with Kazakhstan, CGN owns and operates the Husab uranium mine in Namibia, which can produce 5500 tons of nuclear fuel per year. It is the third largest uranium mine in the world.

Last year, the company also paid $ 63.78 million ($ 54 million) to acquire a 19.99% interest in Fission Uranium Corporation in Canada. This was the first direct investment by a Chinese group in the Canadian uranium sector.

With Australia, Kazakhstan and Canada account for 63% of the world’s uranium resources, according to figures published by the International Atomic Energy Agency (IAEA).

Experts believe that by strengthening their supply chains, Chinese companies have the potential to become major global players in civilian nuclear technology.

Although the price of uranium is expected to rise over the long term, CGN is considering acquiring more assets to meet demand.

The growth of civilian nuclear power production in China has been colossal with capacity doubling between 2010 and 2014 to reach 20 gigawatts.

It is now likely to triple by 2020 to reach the annual 58 GW, equivalent to electricity for at least 135 million homes.

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Arnaud Lefevre

Arnaud Lefevre is the Chief Executive Officer of Dynatom International. Arnaud is in charge of the international development of the business portfolio.