China Nuclear News: Changjiang Unit 1 Being Loaded With Fuel

Uranium market participants have been keeping a close eye on China nuclear news since the Asian nation resumed nuclear power plant construction in March. On Thursday, news hit that unit 1 of the Changjiang nuclear power plant is being loaded with fuel.
The plant is located on China’s southern island province of Hainan and unit 1 is one of approximately 24 reactors being built in China; more are planned as the country aims to double its nuclear capacity by 2020. Unit 1 at Changjiang is expected to begin operating later this year, and a total of eight reactors are expected to start up in China in 2015.
China National Nuclear Corporation (CNNC) told World Nuclear News that loading a total of 121 fuel assemblies into the 650-MWe CNP-600 pressurized water reactor is expected to take two or three days.

This milestone has been a long time coming as the initial approval for the Changjiang plant’s construction was granted by China’s National Developmental and Reform Commission in July 2008. Early site works began in December 2008, and the first concrete was poured at unit 1 in April 2010; unit 2 came a few months later in November 2010. As mentioned, unit 1 at Changjiang is scheduled to begin operating by the end of 2015, with unit 2 set to start up next year.
According to CNNC, the fact that fuel is being loaded means the unit has “officially entered the operational phase.”
The plant is a joint venture between CNNC and China Huaneng Group, with shares split 51 percent and 49 percent, respectively. The plant will eventually be comprised of four units, with units 3 and 4 housing either CNP-650 or ACP-600 reactors. Construction of both those units is scheduled to begin by 2018.

China continues to grow stake in nuclear market

Chinese uranium production accounts for less than a quarter of the country’s current needs, and CNNC is its sole domestic supplier; however, there are plans for new mines in China. What’s more, Chinese state-owned enterprises have been working to acquire uranium resources.
For example, this past May two big announcements showed that China is looking to increase its nuclear share internationally; first, CNNC, along with the China General Nuclear Power Group, announced a plan to obtain stakes in French nuclear company AREVA (EPA:AREVA,OTCMKTS:ARVCF). Then CNNC subsidiary CNNC International (HKEX:2302) said that it plans to seek acquisition opportunities to help meet growing Chinese uranium demand, stating its interest in uranium assets in Kazakhstan, Canada and Australia.

And there will likely be more news surrounding overseas acquisitions — according to the World Nuclear Association, “China aims to produce one-third of its uranium domestically, obtain one-third through foreign equity in mines and joint ventures overseas, and to purchase one-third on the open market.”
Undoubtedly uranium market participants will be looking to see what China does next and how the country’s future nuclear developments affect the uranium price.
 
Securities Disclosure: I, Kristen Moran, hold no direct investment interest in any company mentioned in this article.
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China Looking to Grow its Stake in the Uranium Market
Uranium Price Flat as Market Watched Japan and China