China soaks up global uranium supplies

NEW DELHI: Will the India-US nuclear deal go through? China isn't taking any chances. Indeed, even as debate rages on within India, China is busy soaking up global uranium supplies.

If the agreement allows India to go in for unfettered nuclear trade, it is expected to push up prices of the already expensive metal. But, China is busy securing supplies of uranium, beefing up its systems, buying more plants. On Thursday, China asked the US to help it work out its nuclear power standards, which guide nuclear power actions and safety. Untroubled by considerations of kowtowing to the US, Chinese vice premier Zeng Peiyan said, “Introduction of US nuclear power standards into China will play an important role in China's nuclear power construction.”

Having wrapped up a uranium supply deal with Australia a week ago, China is now setting its sights on pretty much all the big uranium suppliers. China's official target for nuclear power capacity is 40 GWe by 2020 and another 18 GWe in the following five-year plan at a cost of $50 billion. Quite unknown to CPM leader Prakash Karat, there is a global nuclear renaissance in the making.

Of course, the first place to scout for the mineral — whose spot price was until recently $130 per lb — would be Africa, which holds 18% of the world's deposits, a tad behind Australia, but more than Kazakhstan.
China has zeroed in on Democratic Republic of Congo (DRC), South Africa, Namibia, Niger, Kazakhstan and Canada as it looks for fuel for existing and new reactors. China's tactics are familiar: for instance, it is paying for modernisation of DRC's infrastructure and recently signed an agreement to build a major highway, a railway, 31 hospitals, 145 health centres and two universities there.

In Niger, Chinese companies will be involved in mining uranium. Sources in Delhi say Niger had indicated willingness to sell uranium to India at a future date, but the fear is China would have cornered the market by then.