China eyes Canadian uranium miners — report
China is looking for companies with large uranium deposits and low costs to meet domestic demand and a few Canadian miners including Fission Uranium and Cameco may be the potential targets.
Wang Ying, head of China National Nuclear (CNNC), has said the country is seeking miners that have least 30,000 tonnes of uranium resource, cash production no higher than US$25 a pound and total production costs of no more than US$45 a pound, Financial Post reports.
Based on that criteria, deposits that could get immediate attention from Chinese investors are Rio Tinto’s (LON:RIO) Roughrider, Cameco’s (NYSE:CCJ) Millennium, Fission Uranium’s (TSE:FCU) Patterson Lake South and UEX’s (TSE:UEX) Shea Creek. Other project that could attract interest in the long term, adds the report, is Denison Mines’ (TSE:DML) Wheeler River project.
Nuclear power firms in China are turning to the domestic market to raise capital for express expansion, after the government pledged to rely more on renewable energy for power generation.
China is the country with the world’s largest nuclear growth. It has 22 operating reactors on the mainland with a total installed capacity of 20.3 gigawatts as of 2014, and other 24 reactors are under construction, data from the China Nuclear Energy Association shows.
China aims to more than double its capacity to at least 58 gigawatts by 2020 and around 150 gigawatts by 2030.
While Beijing doesn’t disclose total spending, estimates based on the cost of reactors show the country is investing tens of billions of dollars in potential new business for Chinese and foreign companies over the coming decade.