Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
The Chinese government on Wednesday pushed back on a US probe of whether China is helping its neighbor Russia dodge a US ban on Russian uranium imports saying Beijing has always opposed “illegal unilateral sanctions”.
Reuters reported exclusively on Tuesday that the US Department of Energy and other relevant agencies are closely tracking the imports from China to “ensure the proper implementation” of the ban on Russian enriched uranium that President Joe Biden signed in May.
The US is concerned that China is importing and using Russia’s uranium in its own power plants, and then exporting domestically produced uranium to the United States – effectively undermining the US ban that is intended to deprive Moscow of revenue for its invasion of in Ukraine.
The Chinese foreign ministry said in response to questions from Reuters that “China has always opposed any illegal unilateral sanctions and ‘long arm jurisdiction'”. The comments included no denials that the shipments could circumvent the ban.
“The cooperation between China and Russia is an independent choice made by two sovereign countries based on their respective development needs, openly and honestly, without targeting any third party, and without being interfered or obstructed by any third party,” the ministry said.
It said China is willing to continue “normal economic and trade cooperation” with countries around the world, including Russia.
China’s comments reflect tensions between Washington and Beijing over Russia’s war on Ukraine. The US ban, which fully blocks the imports Russia’s state owned nuclear company in 2028, is part of a slew of sanctions on Moscow over its war on Ukraine.
The boost in enriched uranium shipments from China and potential circumvention of the ban, has also concerned the US uranium fuel supply chain industry which got a $2.7 billion boost in public funding in Russian import ban law.
The US has a couple of options to push back against the shipments if it finds that China is circumventing the ban, though either one could take time. It could either boost tariffs on imports of enriched uranium from China, which currently stand at 7.5%, or Congress could expand the ban on uranium from Russia to include China.
(By Timothy Gardner and Ryan Woo; Editing by David Evans)
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