China National Nuclear in Talks With Areva on Uranium Stakes
Updated: 2012-03-23 15:35
China National Nuclear Corp. said it's in talks to buy a stake in uranium mines owned by Areva SA (AREVA) as the world's biggest energy consumer prepares to resume approval of new reactor construction.
"We are also discussing opportunities with many countries to cooperate in terms of uranium exploration and mining," Sun Qin, president of China's biggest atomic power plant operator, said in an interview in Seoul today, without giving a time-frame or details on location.
China National Nuclear, which started operations at its first overseas uranium mine in 2010, is looking to acquire additional assets to meet rising domestic demand, the company said in March last year. Rival China Guangdong Nuclear Power Group Co. is offering to buy Australian explorer Extract Resources Ltd. (EXT) for A$2.2 billion ($2.3 billion) to gain access to the world's fourth-biggest uranium deposit.
"We are preparing to list CNNC Nuclear Power Co.," as part of our expansion plans, Sun said, without elaborating.
China National Nuclear is also the parent of Hong Kong- listed CNNC International Ltd. (2302), a uranium producer in Niger.
The Chinese government is "very likely" to resume approval of new nuclear projects in 2012 as the government completes a safety review prompted by the Fukushima disaster last year, Sun said on March 5. China, which started operating its first commercial nuclear plant in 1994, is building at least 27 reactors and has 50 more planned, according to the China Nuclear Energy Association.
"Nuclear is going to continue to play a very important role in the future," Areva Chief Executive Officer Luc Oursel told reporters in Seoul today. "Our estimation is that today we have more or less 400 gigawatts of nuclear plants, and we think this will grow to 600 gigawatts in 2030."
The earthquake and tsunami in Japan in March last year crippled Tokyo Electric Power Co.'s Fukushima Dai-Ichi plant, causing some countries to suspend or scale back their nuclear plants. Areva, currently building plants in France and Finland, is bidding to provide reactors in China, India, the U.K., Finland and the Czech Republic, Oursel said yesterday in Paris.
"The nuclear renaissance has not been severely impacted by the Fukushima accident," said Oursel, who was attending the Seoul Nuclear Industry Summit, citing tenders in the Czech Republic, Finland and South Africa.
Areva produced 9,142 metric tons of uranium last year, making it the world's second-biggest producer of the atomic fuel, according to the company's website. The Paris-based company has mines in countries including Australia, Canada and Niger.
China eyes uranium miner Kalahari
Updated: 2011-10-10 14:17
China is about to push the button on a ¡ê650m bid for London uranium miner Kalahari Minerals as the country gathers up uranium assets to boost atomic generation.
China Guangdong Nuclear Power Group, which is China's second biggest nuclear reactor builder, is putting together a 270p-a-share bid for AIM-listed Kalahari.
The deal, which could be announced as early as this week, will add to the might of China's growing nuclear dominance. The country is in the process of building 25 reactors which make up half of the world's new atomic power capacity.
On Friday, shares in Kalahari, which is being advised by boutique investment bank Ambrian Partners, jumped 7.19pc to 248p. This values the Chinese offer at a 9pc premium to Friday's close and puts Kalahari's market capitalisation at ¡ê622m.
The State-backed Chinese group bid for Kalahari in March, with a higher 290p-a-share offer. But despite shares initially jumping to 309p, the Fukushima nuclear plant disaster in Japan (EUREX: FMJP.EX - news) led to China Guangdong pulling its offer.
First , China Guangdong tried to reduce the bid to 270p-a-share. But the Takeover Panel refused to allow any reduction, imposing a three month cooling off period, as per takeover rules.
The Chinese, being advised by Deutsche Bank , are thought to have rekindled conversations once the deadline was lifted in mid-August.
At its half year results at the end of September, Kalahari said it was focusing on "achieving value for all stakeholders". The company made a ¡ê13.3m loss for the half year but said that losses had narrowed 41pc compared to the last set of results. However, because it is such an early stage company, current financial results have less bearing than project pipelines and development.
Its jewel in the crown is a Namibian uranium mine, Husab, which Kalahari owns through a 42.7pc stake in Extract Resources an Australian company that also has Rio Tinto (Berlin: CRA1.BE - news) on its share register. Husab is forecast to become the world's second biggest uranium mine.
At its results, Kalahari said it would take 33 months from project approval to get the mine fully operational. Kalahari also mines gold, copper and other base metal interests in Namibia.
China Guangdong's approach is the latest example of Beijing's determination to build up both its natural resources such as shale gas and its nuclear power arsenal. Last month, China's Minmetals launched a $1.2bn (¡ê770m) bid for Anvil Mining, a copper producer in the Democratic Republic of Congo.
China Will Get Stake in Uranium Mine in Kazakhstan
Updated: 2007-11-20 14:57
Updated: 2007-11-20 14:57
China will get a stake in a 2,000- ton-a-year uranium mine in Kazakhstan in exchange for its share in a uranium-processing business, state-owned Kazatomprom said.
Output may even exceed 2,000 metric tons because of rising Chinese demand, Kazatomprom President Moukhtar Dzhakishev said at a press conference today in Almaty. The Kazakh uranium miner will get access to Chinese assets, he said, without elaborating.
China wants wider access to uranium amid increased competition for the fuel from Japan and India, which are turning to atomic energy to cut their dependence on oil, natural gas and coal and reduce pollution from burning the fuels. Kazatomprom said Oct. 12 it signed agreements in Beijing with China Guangdong Nuclear Power Group Co. and China National Nuclear Corp., the country's largest producers of atomic energy.
The Chinese companies will create joint ventures with Kazatomprom to produce uranium, while enabling Kazatomprom to invest in the Chinese nuclear industry, the Kazakh miner said after the signing. The uranium will be sold to China as nuclear fuel, it said.
Kazatomprom will start selling nuclear fuel to China by 2013, it said May 31.
Kazakhstan plans to spend about $1 billion in the next four years to increase its annual uranium output to 18,300 tons, from 7,200 tons now, becoming the world's biggest producer, Dzhakishev said April 13 in Tokyo. The country has the second-largest reserves of the metal, after Australia.
Kazatomprom is also studying the possibility of producing a new nuclear fuel, based on beryllium and uranium, which has a longer life than standard uranium fuel, Dzhakishev said. Beryllium is a metallic element used as a reflector in nuclear reactors.
Sino-Australian companies joint hand on global uranium market
Updated: 2010-11-03 09:32
China's Hanlong Energy Limited signed agreements Monday with Australian uranium explorer Marenica Energy to jointly develop uranium mine projects in Namibia.
According to the agreement, with an investment of 33 million yuan ($$4.9 million) in the Australian counterpart, Hanlong Energy will become the largest shareholder of Marenica with about 12 percent of shares in hands.
For Marenica, the agreement will provide longer-term development funding; off-take arrangements and potential cooperation on future strategic acquisitions in the uranium sector by December 2011, according to reports.
While for Hanlong, the deal nails the company a seat by the uranium network table, allowing it to become a participant in the global uranium network.
The number of nuclear power plants globally is expected to double over the next 20 years with China and India taking the lead.
"We believe that supplies from existing and near-term uranium mines will be insufficient to meet future demand. Hence, investing in promising uranium developers such as Marenica is a critical step towards evening out future demand and supply imbalances," said a senior official from Hanlong.
Hanlong Energy is a subsidiary of the privately-owned Sichuan Hanlong Group Co., Ltd., a large diversified group with a broad portfolio of investments in mining resource development, electricity production, infrastructure and real estate development.
The company now is also the first Chinese private company in the current uranium market.
China Yunnan Copper Australia finds hidden uranium, rare earths
Updated: 2010-01-29 10:48
Updated: 2010-01-29 10:48
China-parented but Australia-focused copper, uranium and rare earth explorer/developer, China Yunnan Copper Australia Ltd (ASX: CYU), said an "improved assaying technique" had confirmed significant rare earth elements at its Elaine Dorothy target in North-west Queensland.
Circa A$29.8 million-capped China Yunnan said diamond drilling had unearthed 1.6 kg/t of uranium oxide at 3.5 metres, with 3.81 per cent rare earth oxide at 27.5 metres.
"The previously reported results were based on sample assays returned by a four-acid, near-total digestion," China Yunnan said.
"This method utilising nitric, perchloric, hydrofluoric and hydrochloric acids is near-total, as most minerals will be dissolved. Depending on the sample matrix, not all elements are quantitatively extracted.
"Final results have been returned for these samples, with a significant increase in uranium and rare earth mineralisation identified."Elaine Dorothy forms part of CYU's North-west Properties, which include the wholly-owned Cloncurry North and Mt Isa projects, along with the August 2009-announced Mary Kathleen farm-in with Goldsearch Ltd.
China Yunnan accepted an arrangement whereby it must spend $750,000 on exploration over three years, along with granting Goldsearch three million 40-cent options.
Elaine Dorothy is five kilometres south of Mary Kathleen, a uranium mine which has already yielded 9.2 million tonnes for 1.2 kg/t of uranium oxide, and 3 per cent rare earths.
China Yunnan said it will proceed with surface mapping and "refined geological interpretation" before planning further drilling.
CYU listed on the ASX in October 2007 and was trading higher on today's news.