China has given the green light to construct four more nuclear power units amid soaring demand for uranium and net-zero energy sources. The country already had the most reactors under construction worldwide before the approval.
The decision was made at a Chinese State Council meeting on Friday. Two will be constructed by the state-owned company China General Nuclear Power Group (CGN) and the others are being built by China National Nuclear Corporation (CNNC International Limited) (HKG: 2302).
CNNC saw its share price jump up by over 30 per cent following last week’s news. China is aiming to increase its reactor capacity to 70 gigawatts (GW) by 2025. The country currently has 53 GW.
CGN’s new power units will be situated at its Taipingling nuclear power plant in Guangdong province. CNNC’s will reside at the Jinqimen power station in Zhejiang province.
China approved the construction of 10 power units throughout 2022 and an additional 10 in 2023. The International Atomic Energy Agency says 55 nuclear power stations are currently operating in the country and 23 are under construction (not including the newly approved reactors).
Read more: ATHA Energy closes C$23.5M financing, continues exploration with stronger balance sheet
Read more: ATHA Energy to acquire Latitude Uranium and 92 Energy, creating industry’s largest uranium portfolio
Nuclear fuel demand prompts accelerated uranium exploration
The rising price of uranium and the demand for carbon-free energy have inspired significantly increased activity in all areas of the nuclear industry. Several new reactors are being built, many different types are being developed and explorers are ramping up their activities to capitalize on the opportunity.
This is particularly true in Saskatchewan, the world’s second-largest uranium-exporting region. The province just gave the green light to a major uranium mining operation in the Athabasca Basin run by NexGen Energy Ltd. (TSX: NXE). It projects to be capable of supplying 23 per cent of the world’s uranium needs.
“I think, coming out of COP28 where we have 24 countries committing to tripling their nuclear footprint, Saskatchewan is very much going to play a role in powering the future for not just our province but the world,” Scott Moe, Premier of Saskatchewan, said at the end of 2023.
Notable uranium explorers in the province include ATHA Energy Corp. (CSE: SASK) (OTCQB: SASKF) (FRA: X5U), 92 Energy Limited (ASX: 92E) (OTCQX: NTELF) and IsoEnergy Ltd. (TSX‐V: ISO).
In the United States, Energy Fuels Inc. (NYSE: UUUU) (TSX: EFR) just started uranium production at three mines in Arizona and Utah. The decision to ramp up operations came in response to the price of uranium hitting a 16-year high at about US$90 per pound.
Around 50 hedge funds have been stockpiling yellowcake uranium (U3O8) in response to favourable market conditions as well. These include Anchorage Capital Group, the Sprott Physical Uranium and TrustYellow Cake PLC.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
