China gets first toehold in Canadian uranium

[phantom power]

HONG KONG, Jan 10 (Reuters) - Chinese steelmaker Sinosteel Corp has signed a memorandum of understanding with small Canadian explorer Ditem Explorations that could lead to it taking an equity stake in the firm.

Ditem said it had signed the deal with Sinosteel last month, providing the groundwork for exploration of its uranium properties and new properties in the Athabasca basin.

(...)

Uranium acquistions are high on China's wishlist, and prices UX-U308-SPT have also gained from global demand, mine disruptions and falling inventories. The price hit a record high of $136 per pound last year and has since fallen back to $90, still more than 12 times its price of around $7 in 2000.

The deal with Ditem comes almost a year after Sinosteel secured China's first foothold in Australia's uranium market by sealing a joint venture deal with PepinNini Minerals Ltd.

http://www.reuters.com/article/mergersNews/idUSHKG28147520080110

[losthills]

1. Can anyone spell, "Peak Uranium..."

How about: "Uranium Wars."

[GliderGuider]

2. Here come the Kazakhs!

Kazakhstan to Increase Uranium Output Fivefold, Overtake Canada

Jan. 10 (Bloomberg) -- Kazakhstan, the world's third-biggest uranium producer, plans to increase output fivefold within a decade and overtake Canada as the largest supplier of nuclear fuel.

The Central Asian nation intends to mine 30,000 metric tons a year by 2018, Mukhtar Dzhakishev, president of state-run producer Kazatomprom, said in an e-mailed response to questions on Jan. 8. Kazakhstan extracted 5,279 tons in 2006, about 4,600 tons less than Canada, according to the World Nuclear Association in London.

``It's important for Kazakhstan to get the maximum stake in the nuclear fuel market,'' Dzhakishev, 44, said from Almaty. ``The price of uranium will definitely continue to rise because of the excessive demand. The shortage of uranium will reach a critical level in 2014.''

[losthills]

3. It doesn't matter where you turn...

Energy costs, competition for resources and environmental degradation are going to escalate radically during the remainder of our lifetime.

"Record oil and coal prices, combined with the threat of global warming, spurred demand for nuclear power and uranium to fuel reactors. Uranium rose to a record $138 a pound in June, compared with $6.75 as recently as 2001, as rising consumption forced manufacturers to recycle nuclear warheads to meet demand. "