India to invest in foreign uranium mines

India’s state-owned power producer NTPC is looking to help finance overseas uranium mines to fuel the country’s plan to massively expand nuclear power generation in the coming decades.

The world’s most populous country is planning one of the world’s largest nuclear power expansions, aiming to lift installed generating capacity from about 8.8 GW today to 100 GW by 2047 under its Nuclear Energy Mission. NTPC plans to develop about 30 GW, accounting for nearly a third of the national target.

The company issued a tender to appoint consultants who would help identify potential sources in uranium-producing countries such as Canada, Kazakhstan, Australia and South Africa, The Economic Times reported. Bids are due by Thursday.

Round of deals

The mines search comes amid India’s expanded efforts over the last several months to source uranium. Last week, Australia signed the final administrative arrangements on a deal to supply India with uranium for civilian nuclear use, but detailed volumes weren’t specified. Negotiations on the deal have been ongoing since 2014.

In March, the South Asian country signed a $1.9-billion) deal with Cameco (TSX: CCO; NYSE: CCJ) to supply uranium ore concentrate; and in February, Kazatomprom (LSE: KAP), the world’s top producer of uranium, agreed to sell a significant amount of output to India.

India currently sources domestic uranium from state firm Uranium Corp. of India, though its mines in the states of Jharkhand and Andhra Pradesh yield “medium tonnage and low-grade” uranium, the corporation said.

Last December, India’s parliament enacted a law enabling private nuclear power companies, ending decades of state monopoly in the sector.