China plans to tap the global uranium market to feed the rapid expansion of its nuclear power sector, a top economic planner said on Thursday, although strong demand for the metal has pushed prices above historical levels.
Zhang Guobao, a deputy chief of the National Development and Reform Commission (NDRC), said the country's plans to add one plant a year through 2020 were focused along the booming coast, although inland provinces have been clamouring for investment.
The country aims to spend $50 billion to quadruple its installed generating capacity at nuclear power plants by 2020 to 40 gigawatts (GW), or 4 percent of China's total power generating capacity. At present it has around 9 GW of nuclear power online, and only limited domestic uranium supplies, so is looking for fuel abroad for the expansion.
Another commission official said in April that China, the world's second-biggest energy consumer, was finding it difficult to secure uranium for the planned plants, but its firms have since done a deal with Australia and was looking at other mine opportunities, including one in Niger. "Based on our forecast, there is no supply problem in the global market even if China's mid- and long-term demand is included," Zhang told Reuters on the sidelines of a nuclear standards meeting.
Spot prices for uranium ore concentrate, or yellow cake, are strong on the back of renewed interest in nuclear energy, seen by proponents as countering high oil prices and aiding in global efforts to cut carbon dioxide emissions. They hit a record high of $136 a pound at the end of June, up from just $7 in 2000, but has since recoiled to $90.
"The trading of uranium resources are no different from other energy products," he added. Zhang said many inland Chinese provinces had proposed to the central government to build nuclear power plants, but none of them had received the go-ahead.
"The focus now is to build plants in the coastal regions that are close to major power demand markets and can easily tap sea water to cool the generators," said Zhang. "We do not rule out the possibility to consider plants in inland regions in the future, as it has been done in some other countries such as France and the United States," he added.
Zhang declined to comment on a Reuters report that China had cancelled plans to build two Areva reactors at Yangjiang in southern Guangdong province. "That is a matter between those companies," he said. Sources said China was in talks with Areva to relocate the plant to Taishan, also in Guangdong, and the country would press ahead with four reactors in Yangjiang using domestic technology.