China stockpiles cheap uranium as severe shortage is anticipated...

China stockpiles cheap uranium as severe shortage is anticipated
ROBIN BROMBY THE AUSTRALIAN FEBRUARY 17, 2014

CHINA imported historically high quantities of uranium last year, apparently pre-purchasing at low prices before the commissioning of new nuclear plants. The spot price rose just US25c a pound last week, to $US35.75/lb, insufficient to encourage a uranium explorer to get out of bed in the morning, let alone contemplate starting a new mine. Yet it was reported that this slight upward movement was triggered by news that an "institutional investor" was in the market for one million pounds of the stuff. So it seems stockpiles are quietly being worked on, especially by people who have read the graphs showing a severe world shortage later this decade. The rest of the world, meanwhile, continues to sleepwalk towards that impending crisis.

The Chinese imports are contained in the latest China Resources Quarterly from Westpac and the Bureau of Resources and Energy Economics. Last year, China imported $US2.39 billion worth of uranium. The Chinese figures for nuclear power are a little misleading, it seems. As the report says, investment in new plants fell by 23 per cent (year on year) in the December quarter due to a delay in commissioning new plants in 2012 (presumably the stand-still period when China was reassessing its plans in light of Fukushima).

But then look at what lies ahead. Somewhere north of 37,000 megawatts of nuclear capacity is under construction, but projects now on the drawing board exceed a further 60,000MW.

No wonder Chinese buyers are quietly buying up while yellowcake is available at clearance-sale prices.