Nuclear nations rush to lock in uranium deals
A global shift toward nuclear power is prompting countries to rush to lock in long-term access to tight supplies of uranium, and China and India look to be the next players to get in on the action.
A global shift toward nuclear power is prompting countries to rush to lock in long-term access to tight supplies of uranium, and China and India look to be the next players to get in on the action.
A tie-up between Rosatom, the Russian state-owned producer, Rosatom and Canada-based miner Uranium One announced this week is just the latest in a series of moves on the part of Asian and European countries to lock in uranium supply to fuel construction of dozens of new reactors over the next decade.
"I think increasingly the supply of reactors is being tied to security of supply of nuclear fuel," said Divya Reddy, an energy analyst with the Eurasia Group in Washington.
Rosatom secured a 17 percent stake in Uranium One and a long-term supply deal in exchange for a half stake in the Karatau mine in Kazakhstan.
Uranium One is also trying to close a C$270 million ($240 million) 20 percent share sale and supply agreement with Japan's Toshiba Corp, Toyko Electric Power Co, and Japan Bank for international Cooperation, while uranium miner Denison Mines recently agreed to sell 20 percent of itself to Korea Electric Power Corp.
Reddy sees more activity from Russia as it strives to expand its influence in the nuclear industry, but said the most likely sources of demand in the longer run will come from Asia, including India, which last year signed a deal ending a three-decade ban on nuclear trade with the United States.
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