Congo’s Gecamines offers $1 million to block Chinese deal with Chemaf
Chemaf agreed to sell its assets to Chinese defence and industrial giant, China North Industries Corp, or Norinco in June.
Uranium project developers see a stronger outlook for prices and supply pacts after the world’s top producer of the nuclear fuel jolted the market with output cuts.
Recent talks with prospective buyers have signaled there’s additional interest in new off-take agreements and that’s likely to increase after Kazakhstan’s state-run miner Kazatomprom lowered its production guidance earlier this month, according to Bannerman Energy Ltd.
“It’s clear to us from those discussions that utilities want to see greater diversification of supply,” said Brandon Munro, chief executive officer of Perth-based Bannerman, which aims to bring the Etango project in Namibia into production by the end of 2026. “We think the long-term picture remains strong.”
Kazatomprom this month lowered its 2024 guidance by as much as 14%, having previously warned it’s likely to fall short of production targets into 2025.
At the same time, uranium demand is being boosted as nations including China, Japan, South Korea and France revive or expand their nuclear power fleets, said John Borshoff, CEO of Deep Yellow Ltd., with projects in Australia and Namibia.
“I think it’s a great time for producers, and it’ll be a sustainable period of high prices for at least a decade,” Borshoff said. Deep Yellow forecasts first production from its Tumas project in Namibia in 2026.
(By Carmeli Argana)
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