China Guangdong Nuclear Power Holding Co (CGNPC) yesterday
announced that it would go public in a bid to "get bigger and
stronger".
The smaller player of China's two nuclear power corporations
just ordered two nuclear reactors with third-generation technology
from Areva, the world's largest maker of the units, for its new
project in Taishan, Guangdong Province in late November.
"We are capable of taking half of the domestic market shares of
nuclear power supply, but we are far lagging behind the country's
top five power suppliers, which reinforce our ambitions to get
bigger and stronger in the future," said Zhang Weiqing, spokesman
for CGNPC in a press briefing.
The goal will be achieved in a variety of means, including
raising funds from stock markets, he added.
"Going public could raise the company's transparency and is good
to improve management. We do not rule out the possibility to be a
listed company and preparation is underway under the guidance of
the higher authority," Zhang said.
When the thermal power companies were reported to suffer great
losses last year due to the price hike of coal, CGNPC recorded a
slight increase in revenue, from nearly 11.2 billion yuan in 2006
to 11.5 billion yuan in 2007, without operation of new units.
However, given that the price for uranium is also on the rise,
Zhang said the company is actively increasing the reserve of the
rare element and looking for new uranium mines.
The company has cooperated with local companies in Kazakhstan
and Uzbekistan to explore uranium mines. "We will set up a branch
in Kazakhstan soon," Zhang added.
The firm's new deal with Areva also allowed it to gain access to
35 percent of production from Areva uranium unit UraMin Inc.
Zhang also explained for the first time on the application of
the third-generation technology to the Taishan project rather than
the previously planned Yangjiang project, also in Guangdong.
"It was almost ready for the construction of Yangjiang nuclear
power station last year, but the negotiation on the introduction of
third-generation technology would take time. Finally we decided to
make the adjustment to use the new technology in Taishan project,"
Zhang told the reporters.
The Yangjiang project is expected to start construction in the
second half of this year while the Taishan project just started.
The two nuclear units might be put into operation by 2026, he
added.
(China Daily January 25, 2008)
