CNNC International eyes uranium projects in Kazakhstan, Canada and Australia

China National Nuclear Corp subsidiary CNNC International is eyeing acquisition opportunities to help meet demand spurred by the expansion of the country's nuclear power programme.

The Beijing-based company, which develops and trades overseas uranium resources, was particularly interested in Kazakhstan, Canada and Australia, which were home to rich resources with promising development opportunities, CNNC International chief executive Wang Ying said after its annual shareholders meeting yesterday.

"For any potential acquisition, timing is very important. If the acquisition is made too early, one may be stuck with a loss-making project for a while," she said. "If the investment is made too late, the profit upside may be missed … quality reserves, manageable risk and promising return prospects are some of the criteria for investment."

Projects with economic development potential should have at least 30,000 tonnes of uranium resource, cash production cost no higher than US$25 a pound and total production costs of no more than US$45 a pound, she added.

Wang said the next five years would be a good window for acquisitions, as the market was working down the surplus inventory accumulated after Japan's Fukushima nuclear disaster in March 2011 that saw 48 Japanese reactors shut temporarily and two permanently.

Japan's nuclear regulator signed off on the basic safety of a reactor at a third plant earlier this week as the nation inches towards restarting some reactors amid opposition from anti-nuclear activists, Reuters reported.