Beijing is considering opening up the uranium exploration and mining sector, now controlled by the two state nuclear power groups, to other state-owned firms, according to government officials.

The move would speed up the development of domestic resources to meet rapidly growing demand from the nation's ambitious nuclear power expansion program.

Cao Dabiao, director for nuclear power at the Commission of Science Technology & Industry for National Defence, confirmed a media report that private and foreign firms would remain barred from the sensitive sector. The opening-up was still at an early stage of deliberations, he said.

Mr Cao would not say whether state power companies would be in a preferential position compared with other participating state firms.

China National Nuclear Corp is the main uranium miner on the mainland, although China Guangdong Nuclear Power Holding, the smaller of the two state nuclear power producers, also set up a mining company in August last year.

The nation aims to raise its nuclear power generation capacity more than fourfold to 40 gigawatts by 2020 from 9.1 GW at present.

It would need more than 8,000 tonnes of uranium a year by 2020, said Liu Xuehong, vice-president of National Nuclear's overseas unit China Nuclear International Uranium Corp.
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Although the mainland has an estimated reserve of 1.7 million tonnes, which would be sufficient to meet the 2020 development target, she said the industry would need to tap foreign resources in the long term.

National Nuclear joined hands in May with state-owned iron ore miner Sinosteel and conglomerate Citic Group, both with resources businesses in Australia - holder of 40 per cent of global uranium reserves - to explore for domestic and overseas resources.

The partners have expressed interest in tapping resources in Niger, the No3 uranium producer. Uranium prices have shot up to US$135 per pound recently from US$10 in 2003.

Meanwhile, China National Nuclear Uranium Corp general manager Zhang Feifeng was quoted by Shanghai Securities News as saying that China National Nuclear Uranium was considering a stock market listing to fund expansion, implying the uranium mining sector could be open to indirect investment by non-state investors eventually.

(South China Morning Post July 8, 2007)