China eyes uranium for huge energy needs in future

Renewable Energy  |  2011-03-08 08:40:16   |   By Paul Ploumis

China is overtaking United States in every sector, it is expected that China will consume more energy than US in very recent years. China's growing nuclear power industry will make it the world's largest uranium user, overtaking the United States

BEIJING (Scrap Monster): China is overtaking United States in every sector, it is expected that China will consume more energy than US in very recent years. China's growing nuclear power industry will make it the world's largest uranium user, overtaking the United States.

China is estimated to mine 1,200 tons of uranium annually and is expected to stay at this level of production for the near future. China has established a total of about 26 major uranium mines.  Since the beginning of the opening and reform process, China's uranium mining industry has undergone extensive reorganization. 

China has reduced output and closed inefficient mines resulting in a reduction of personnel from 45,000 in 1984 to 8,500 in 1999.  As part of its efforts to improve efficiency, China is focusing on in-situ and heap leach technologies.  Improvements in management and technology have led to uranium mining facilities becoming three to four times more efficient.

At the same time, China’s entry into the uranium market is supposed to be a catalyst to drive uranium prices higher. The country recently announced a deal with Cameco (CCJ), the largest US-listed uranium miner by market value.

China has also recently claimed a breakthrough in extracting uranium and plutonium from spent fuel, saying this would enable the country to run its nuclear power plants for three thousand years with existing uranium resources.

By 2020, nuclear power could be contributing 7 percent to 8 percent of China's electricity, more than the government's target of 5 percent. China has 11 nuclear reactors with 13 under construction to reduce the country's reliance on coal.

The World Nuclear Association was quoted as saying China is planning to construct an additional 187 nuclear reactors. The agency estimates China's annual uranium consumption would reach 20,000 tons by 2020, about a third of 2009 global output.

China's Nuclear Energy Association has estimated future plants would require more than 400 tons of uranium each to start operating. China's uranium imports last year totaled 17,136 tons, three times higher than in 209. Currently, the United States, France and Japan are the world's major uranium consumers.

China’s uranium demand is expected to reach 20,000 tonnes a year by 2020, with the nation expected to produce domestically 2,400 tonnes a year by that time.