The Conversation (0)
Nov. 23, 2014 09:45PM PST
China could need about 1,000 nuclear reactors, 500,000 wind turbines or 50,000 solar farms as it gears up to fight climate change. Currently, 23 nuclear reactors are built in the country, with a further 26 under construction.
China could need about 1,000 nuclear reactors, 500,000 wind turbines or 50,000 solar farms as it gears up to fight climate change, Bloomberg reported last week.
“China is in the midst of a period of transition, and that calls for a revolution in energy production and consumption, which will to a large extent depend on new energy,” said Liang Zhipeng, deputy director of the National Energy Administration’s new energy and renewable energy department, at a conference earlier this month.
The Power Reactor Information System states that 23 nuclear reactors are currently built in the country, with a further 26 under construction. While the figure of 1,000 might thus seem like a stretch, it highlights the essential need for power that China is facing. The nation’s electricity demands are expected to rise roughly 46 percent by 2020 and double by 2030.
While nuclear power only accounted for 2 percent of the country’s power in 2011, investment in the space has significantly increased since then, marking it as a favored method of energy production by the Chinese government.
“The majority of China’s longer-term plans for new build are fast reactors, which can both burn and breed fuel, significantly reducing the amount of uranium required over the life of the unit. It remains uncertain what the growth potential of China’s fleet really is, let alone the proportion of that fleet made up of fast reactors and their efficiency, so the impact to the uranium market is tough to quantify,” wrote David Sadowski, an analyst with Raymond James, in an email. “In any case, the next decade or two will be dominated by pressurized water reactor (PWR) construction, which, if accelerated, will certainly ramp up uranium demand, which is already projected to outstrip annual supply (based on our modeling) starting in 2020.”
Pressurized water reactors are a subset of light water reactors, which were originally created as nuclear propulsion for nuclear submarines. They are considered stable power sources, but produce less power as temperatures increase.
Similarly, David Talbot, a senior analyst with Dundee Capital Research, noted that he believes China is just on the cusp of its investment in nuclear energy. The World Nuclear Association notes that the desire for nuclear has been spurred by rising air pollution from coal-fired plants.
“For now China seems committed to its current plans for a more than three-fold increase in nuclear capacity to at least 58 GWe by 2020, then some 150 GWe by 2030 and much more by 2050,” he wrote in an email. “We don’t believe for a moment that China is content to let others have an upper hand on the future of its energy supply, thus we’d expect further entry into the uranium sector through further acquisition of assets.”
Securities Disclosure: I, Nick Wells, hold no direct investment in any of the companies mentioned in this article.
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Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
