China is the world’s fastest growing nuclear market and Cameco wants to get in on the action.
The Saskatchewan uranium mining company currently has supply contracts with China General Nuclear Power Corporation and the China Nuclear Energy Industry Corporation and they are always looking for new opportunities.
Company spokesperson Carey Hyndman says the Chinese nuclear power market has enormous potential.
“What we see there is a rapidly growing market,” she says. “So, right now they have 20 reactors in operation with 30 new reactors under construction and then dozens more in the planning stages. So, that’s more than anywhere else.”
At the same time, China has expressed interest in investing in uranium mining operations in other countries.
An official with China General Nuclear Power Corporation recently stated the company has secured uranium projects in Namibia, Kazakhstan and Australia and will soon be turning its attention to similar projects in Canada.
However, Hyndman says Cameco is not fearful of a hostile takeover because current federal regulations in the uranium industry prevent foreign investors from acquiring majority ownership in Canada.
“Once a project moves into production, Canadian regulations put it under the non-resident ownership policy. So, what that means is that no foreign entity can have majority ownership.”
China is looking to increase its nuclear power capacity from the current 19 gigawatts to 58 gigawatts by 2020.
Some estimates also say China could have the capacity to produce 200 gigawatts of nuclear power by 2030.