China’s CNNC eyes Canadian uranium projects

Recent news reports indicate China is becoming more active on the uranium front, with a state owned nuclear giant eyeing international uranium projects following its acquisition of a share in French nuclear firm Areva.

Wang Ying, CEO of China National Nuclear Corp.’s subsidiary CNNC International, said the company is interested in buying large, low cost uranium assets, namely in Canada, Kazakhstan and Australia to help meet demand driven by China’s expanded nuclear power program, South China Morning Post reported.

Outlining the investment criteria, Ying said the project should have at least 30,000 tonnes of uranium resource (78 million lb U₃O₈), with cash production cost of no higher than US$25 per lb and total production costs of no more than US$45 per lb.

Ying explained that the next five years would be a good time for an acquisition as the market absorbs the surplus following Japan’s Fukushima nuclear disaster in March 2011. The incident led to Japan taking offline all of its reactors. The country currently has 43 operable reactors that could come back online. So far, it has given a final safety approval to two reactors, with restart beginning as early as July.

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