The deal is estimated to be worth ~$22 billion and would give the Chinese access to AREVA's nuclear fuel cycle, including: uranium mining, front end, recycling, logistics, decommissioning and dismantling.ĪREVA has interests in three of the four largest uranium operations in the world, and we foresee China pursuing this deal to ensure its 29 reactors in operation and 22 under construction will have safe sources of uranium. On the production front, AREVA ( OTCPK:ARVCY) and the China National Nuclear Corporation (CNNC) signed a memorandum of understanding for a possible partnership, where CNNC could take a minority stake. Intuitively, this is positive news for both renewables and nuclear power. On a macro level, the developed nations of the world continue to work on lowering CO 2 emissions, with the energy sector being singled out. It is only a matter of time before the full regiment of 48 reactors come back online.Īt the Conference of Parties in Paris earlier this month, uranium received another huge endorsement, with scientists and lobbyists endorsing nuclear power as an environmental source of energy. Prior to the Fukushima meltdown, the country derived over 30% of its electricity from nuclear. This follows the successful restart of Sendai 1 and 2 earlier this year, a clear sign that Japan is warming back up to nuclear power. In Japan, the mayor of Takahama, Yutak Nose, has agreed to restart the Takahama No. But, unbeknownst to the general public, circumstances for uranium continue to improve.
Currently priced at $36 per pound, the global cost to produce a pound of uranium far exceeds the going market rate. Uranium has been trading flat for several weeks.
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